
<p>For a long time, Switzerland was known as the safest in the world, that’s because it was the first tax haven to be protected by law. Switzerland’s reputation is so great that it has also become a haven for illicit money flows around the world.</p>



<p>But the country is losing its status as the world’s largest dirty vault. Why is that?</p>



<h2>The world’s largest ‘dirty money’ vault</h2>



<p>Swiss banks always put the protection of users’ identities first. The account holder information at the bank is always kept confidential and even though the customer is not Swiss and is having legal problems, the tax authorities cannot investigate. In addition, anyone who discloses the bank’s activities will be imprisoned for six months, pay a fine of 20,000 Swiss francs and a damages depending on the information disclosed.</p>



<p>Of course, in some cases involving criminal offenses, the bank must cooperate with the investigation, but in Switzerland tax evasion is not a criminal offense. So unless the client is involved in serious matters, they can rest assured that no one will be able to find their money in Switzerland.</p>



<p>Switzerland has long been called the safest safe in the world Because of this safety, people initially came to Switzerland with the absolute belief that it was a safe deposit box in the middle of war. Because of that, the whole world was surprised when a series of tax evasion and corruption scandals related to many accounts of billionaires hidden at Swiss banks were exposed.</p>



<h2>The first anti-illegal property efforts</h2>



<p>The Swiss banking industry has not been ‘closed’ since Switzerland joined the United Nations General Assembly (UNGA in 2002).</p>



<p>The UNGA regulations put pressure on the Swiss authorities to force banks to provide information about customers who are sending money in Switzerland to foreign investigative agencies. As a result, the Swiss bank had to provide a rather long list, with the identities of about 20,000 wealthy Americans and 30,000 Nazi victims who were keeping their money in Swiss banks.</p>



<p>Things became more tense in 2007, when Switzerland joined the UNODC and World Bank’s “Stolen Asset Recovery Initiative”（STAR） to help developing countries recover assets stolen by corrupt officials. . This policy forced the Swiss bank to return $1.6 billion and disclose information about corruption cases of high-profile figures, including dictator F. Marcos in the Philippines, Sani Abacha in Nigeria, or a former director. Peruvian intelligence V. Montesinos…</p>



<p>After the event, the Swiss Foreign Ministry said that “the country is not a place to bury corrupt and illegal assets. &#8220;</p>



<h2>The turning point in history</h2>



<p>Despite the struggles against illegal assets, Switzerland is still a safe place to launder money, because without the cooperation of the banking industry, inspectors or hackers would not be able to investigate. However, one event in 2009 changed all that.</p>



<p>Bradley Birkenfeld, an employee of UBS bank, provided confidential documents on how the organization helped US customers avoid $20 billion in taxes. The scandal was so serious that the Swiss and American governments had to meet to negotiate. Later, UBS itself admitted to defrauding the US government, paying a fine of 780 million USD and having to share with the IRS information about thousands of accounts of US customers depositing money at UBS.</p>



<p><img src="https://i0.wp.com/res.cloudinary.com/dulr2rx9n/image/upload/v1625398005/Bradley_Birkenfeld_e16b1ecf14.jpg?ssl=1" alt="Bradley Birkenfeld is considered the &quot;hero&quot; of the banking industry" data-recalc-dims="1">&nbsp;<em>Bradley Birkenfeld is considered the “hero” of the banking industry</em></p>



<p>But the IRS did not end the case there, a series of offices of other major banks such as Credit Suisse and HSBC were ransacked by police, causing chaos throughout the Swiss banking system. In Tax Notes, editors called the man who lifted the veil as “Person of the Year 2009”.</p>



<p>After the first shot of Bradley Birkenfeld, a series of Swiss banking scandals resurfaced, from the London Libor interbank exchange rate manipulation that shook the international market in 2012, to the money laundering scandal for banks. FIFA officials starting in 2017.</p>



<p>Bradley Birkenfeld was later awarded $ 104 million, but he was also sentenced to 3 years and 4 months in prison for helping Americans evade taxes at UBS. He said sadly, “I infiltrated the world’s largest banking system and helped the world’s largest government expose corruption, but in return I was imprisoned. But anyway justice has been done, I will continue to fight to the end.&#8221;</p>



<h2>The end of illicit money?</h2>



<p>In an effort to “clean up” its banking industry, the National Assembly of this country approved the agreement “Multilateral Treaty on Mutual Administrative Assistance for Tax Matters”, and minimized the bank protection policy.</p>



<p>Under this treaty, information about foreign customers depositing money at Swiss banks will be disclosed annually to participating countries, starting from January 1, 2018. But since 2017, Switzerland has started to aggregate information of account holders to then share with a number of countries such as Japan, Canada, and South Korea in 2018. Particularly with emerging economies such as Brazil, Argentina and South Africa, it was not until 2019 that Switzerland implemented this treaty.</p>



<p>After a series of scandals and government efforts, Switzerland was finally removed from the list of tax havens by the EU. But in return, the country’s banking industry has to work hard to attract other capital flows, because the revenue from the management of illegal money sources is now gone. Worse is this new 2021, the two largest banks in Switzerland, UBS and Credit Suisse, have just lost billions of dollars after the collapse of the Archegos investment fund.</p>


Why is Switzerland no longer a great place to hide dirty money?


<p>Just last week, there was news that the FBI and the US tax agency were investigating the billionaire tax evasion case. This is not the first time because every few years a few tax lawsuits related to the tax of the super rich are leaked. The forms of tax evasion are increasingly diverse, and the government’s measures to combat tax evasion are also gradually tightening.</p>



<h2>Who is dodging taxes?</h2>



<p>Allegations like these are not new, and many names have gone out of the way of the press from year to month. Representing 2007 and 2011 were Amazon’s Jeff Bezos, 2016 George Soros on the press, 2018 featuring Tesla’s Elon Musk accused of failing to pay federal taxes.</p>



<p>According to the latest report of ProPublica, during the five years of 2014-2018, the 25 richest people in the United States, whose total assets increased by $401 billion, spent only $13.6 billion in federal income tax, equivalent to 3.4%. while the tax rate in the US is from 10% to 39.6%.</p>



<p>In most countries, the higher the income, the more tax you have to pay, but when you have a lot of money, things are different.</p>



<h2>What is the most common way to avoid taxes?</h2>



<p>The wealth of billionaires is largely in the name of businesses, but the government only taxes income in the name of individuals, including salaries, dividends, bond interest, and proceeds from the sale of financial assets.</p>



<p>So the super-rich bosses can pay themselves very low wages and only pay personal income tax corresponding to that salary. However, their huge assets are shares in the name of the business and no tax, only when sold will they be charged a capital gains tax of 20%.</p>



<p>Usually, billionaires don’t sell stocks but use them as bank loans to avoid capital gains taxes, much like Elon Musk has done with Tesla stock for years.</p>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" width="640" height="427" src="https://i0.wp.com/54.193.88.134/wp-content/uploads/2022/05/elon_musk_3b50883acf.jpeg?resize=640%2C427&#038;ssl=1" alt="" class="wp-image-187" srcset="https://i0.wp.com/54.193.88.134/wp-content/uploads/2022/05/elon_musk_3b50883acf.jpeg?w=640 640w, https://i0.wp.com/54.193.88.134/wp-content/uploads/2022/05/elon_musk_3b50883acf.jpeg?resize=300%2C200 300w" sizes="(max-width: 640px) 100vw, 640px" data-recalc-dims="1" /><figcaption>Tesla shares have helped Elon avoid taxes for year</figcaption></figure></div>



<h2>So what is the damage here?</h2>



<p>According to TJN, countries are losing about 427 billion USD in taxes each year, of which 245 billion USD are due to businesses and 182 billion USD are due to tax evasion by individuals. In addition, according to IMF and WB calculations, there are about 21,000-32 trillion USD of “black money” buried in 100 “tax havens”, equivalent to half of global GDP.</p>



<p>Because taxes are only levied on personal income and not on assets in the name of organizations, ordinary people who live on income are paying taxes, while the super-rich who own assets in the name of organizations do not. are not. This has increased the wealth of the rich and poor more than ever</p>



<p>In 1960, 90% of America’s poorest people kept 30% of the economy’s wealth, today down to 25%. Meanwhile, America’s richest 0.1%, who accounted for 10% of the economy’s wealth in 1960, has doubled to 20%.</p>



<h2>Government tightens tax laws</h2>



<p>In the coming time, it is certain that dodging taxes will not be as easy as before, because the governments are trying to close the loopholes in the tax law. First, the G7 agreed on a global corporate tax rate of at least 15%. So businesses with branches in any country need to contribute more, limiting the benefit from the 0-10% tax rate in tax haven countries as before.</p>



<p>In addition, the Joe Biden administration’s proposals to tax the rich have really worried American oligarchs. He stated that whether or not to sell stocks, billionaires still have to pay capital gains tax after death. This will incentivize them to sell equity assets and increase government revenue.</p>



<h2>Tax havens coming to an end?</h2>



<p>As the government gradually tightens tax laws, “tax havens” have little chance to develop. Although they are areas with very low tax rates, they develop economically thanks to the types of complementary services for multinational companies, such as accountants, lawyers, banks, etc. In 2018, services Financial services and businesses account for more than 60% of the revenue of the Virgin Islands, one of the famous tax-havens.</p>



<p>What’s more, when the OECD allowed countries to freely exchange financial information for managing taxpayers’ overseas assets, the government collected $104.75 billion in additional taxes for member countries. At the same time, money deposited at banks in tax havens dropped sharply from 20-25%.</p>



<h2>Controversy surrounding the tax increase for the rich</h2>



<p>Some people disagree with raising taxes on the rich. Mr. Edward Yardeni, President of Yardeni Research Inc said that “1% is paying more than 40% of federal income tax. Isn’t that enough?&#8221;</p>



<p>In the same vein, economist Erica York said that the Biden administration “is implementing ineffective tax increases, which could undermine economic growth and reduce America’s competitiveness.”</p>



<p>However, Democratic Congresswoman Alexandria Ocasio-Cortez supports increasing taxes on the rich, proposing a progressive tax rate of up to 70% for income over $10 million.</p>



<p>This tax rate is still not the highest in US history. In 1944, President Roosevet proposed the highest progressive tax rate of 100% on incomes over $25,000. Finally, after much controversy with the National Assembly, the highest tax rate was 94%.</p>


How do the rich evade taxes?


<p>A question asked the most by every F0 investor when entering the stock market is “What should I buy now?”.</p>



<p>Choosing a few stocks to invest in is a very headache job when on the U.S stock market, there are currently more than 15.000 stocks. And if you have the same question, then Certificate of Fund (CCQ) ETF is the answer.</p>



<h2>What is an ETF Certificate?</h2>



<p>ETF stands for&nbsp;<strong>Exchange Traded Fund</strong>. Because it is a “fund certificate”, when you buy an ETF, you are investing in a group of stocks or assets, and your money will be managed by a professional investment fund.</p>



<p>In addition, there are 2 characteristics of ETF that make it different, which are:</p>



<ol><li>The ETF will simulate the change in the value of a market index (such as Vnindex, VN30) of a commodity, an asset or a commodity (such as the price of gold, the price of rice, the price of steel, the price of coal, etc.). ). So the goal of the ETF’s profit growth is to match the market, not beat the market.</li><li>ETF can be traded on the stock exchange like a common stock.</li></ol>



<h2>How are ETFs created?</h2>



<p>Let’s say you are a safe investor and want to buy shares of all companies in the NASDAQ-100 (NAS100), ie a stock market index made up of 102 equity securities issued by 100 of the largest non-financial companies listed on the Nasdaq stock market.</p>



<p>This will cause many difficulties because firstly, you will be very laborious because you have to create at least 100 individual transactions. Second, you will need a very large amount of money, when each trade you have to buy at least 100 shares. If temporarily taking the average price of 100 codes over $5 USD, the amount you need to spend is:</p>



<blockquote class="wp-block-quote"><p>100x100x5 = $50,000 USD.</p></blockquote>



<p>This is no small amount for a beginner.</p>



<p>To solve this problem, a fund management company X will spend 100 billion to buy 100 stocks in the NAS100 group according to the same value and proportion as the NAS100 portfolio structure. From there, they established an ETF, modeled after the NAS100 index. Fund X then splits its 100 billion shares into 1 million fund certificates at $10 USD each. And now, by buying these ETF certificates, private investors like you can “buy” all stocks in NAS100 without spending too much money.</p>



<h2>Why should you buy CCQ ETF?</h2>



<p>First, the ETF is a great tool for those who have little experience and understanding of the market but still want to invest. They will not have to study each stock and the company’s behind-the-scenes activities, but just need to know a very general and basic way about a sector or a country, and choose the ETF that is emulating the index. corresponding number.</p>



<p>Second, ETFs help investors diversify their portfolios at a low cost, thereby minimizing volatility risks, especially for ETF indexes that mimic large-cap stocks in the market. . Another advantage of ETFs is that the fees are cheaper than other fund certificates, due to the low operating costs of the ETF.</p>



<p>However, a basic thing in investing is that low risk also comes with low return. Investors need to understand that ETFs only want to generate returns equal to the growth rate of the index or commodity they simulate. So you can’t ask the NAS100 ETF to give you a 20% a year yield while NAS100 companies have only grown 15% in the past year.</p>



<p>In addition, the biggest disadvantage of ETFs is that because investors do not directly hold shares, they will not receive the rights of ordinary shareholders (receiving dividends, receiving bonus shares, the right to attend a general meeting. shareholder meeting, etc.). It is the ETF fund management company that plays a shareholder role in the stocks in the portfolio, and whether the interests of investors are guaranteed or not, will depend on the transparency of the fund management company.</p>


ETF Fund Explained: Definition & Overview 2022


<p>Everybody wants to relish the comforts of life and dive into the luxuries at some time. And to turn such wishes into reality, having ample finances is the prime requirement. It may get fretting about thinking about managing funds, meeting present expenses, curbing extravagant yearnings, saving for the future, and whatnot. Indeed, anybody can find it complicated and confusing to prioritize the financing sequence.</p>



<p>The internet is flooded with results on&nbsp;how to invest 20k&nbsp;because people seek answers for such a crucial answer online. If you are someone who is yet to start an investment, this post will guide you thoroughly.</p>



<h2>Reasons why it is imperative to invest</h2>



<p>Before knowing the lucrative ways in this regard, it is essential to understand what is behind it. People, especially young adults, underestimate the power of investing and get carried away by the spendthrift temptations. The following reasons will reverse such an ideology and may convince to capitalize money.</p>



<ul><li><strong>Save for contingencies</strong>&#8211;&nbsp;Pandemic 2020 showed that uncertainties could break in anytime to anyone. Only those will survive who had saved enough for such emergency needs, especially when the economy is collapsing.</li><li><strong>Utilize idle funds</strong>&#8211;&nbsp;It is better to look for ways about&nbsp;how to invest 20k&nbsp;rather than letting such an amount sit in the locker. Idle funds will remain of the same value, but investing in them can give at least little returns.</li><li><strong>Accomplish life goals</strong>&#8211;&nbsp;There is inexplicable satisfaction in spending own money to fulfil self-made desires. Capitalizing can help yield profits that can later be used to bear the expenses of small or big dreams.</li><li><strong>Long-term purpose</strong>&#8211;&nbsp;Retirement is certain even if it is far for a person at this moment. But, it is imperative to understand the value of making money for older days while you are young. Other long-term goals can also have success with today’s investment.</li></ul>



<h2>Top ways on investing money</h2>



<p>Now that you know the importance, it is time to know&nbsp;how to&nbsp;<strong>invest 20k</strong>.&nbsp;It might now seem to be a whopping amount, but it does have significant value in one’s life. Everything starts small, and so does asset-building. So, do not worry about having little and embrace the following profitable ways.</p>



<h3>Open A Comprehensive Brokerage Account</h3>



<p>Whenever it is about investing, the first option that pops up in the minds of everyone is stocking. However, it is pertinent to mention here that the stock market is not the only option here. There are multiple options to devote money in ways other than just shares of a company. To name a few, among them are bonds, mutual funds, ETFs, and even products.</p>



<p>Undoubtedly, people have turned into millionaires and billionaires by diverting their money into the stock market; however, it is vital to diversify the portfolio. The reason is simple yet impactful. Diversification is essential to balance out losses from one channel from the profits of other. It may also help in saving taxes in varied categories.</p>



<h3>Take Help From Robo Advisor</h3>



<p>Almost every beginner has faced problems and turmoil to find answers on&nbsp;how to invest 20k.&nbsp;As a newbie, it can be wise to give the charge to a Robo advisor rather than putting fruitless efforts on your own. Robo advisor is a tech broker available via online portals where software becomes one’s financing guide. It uses embedded algorithms to manage the user account in the best possible way.</p>



<p>It is essential to answer a couple of questions to the virtual advisor truly regarding risking preferences for a successful start. Once it receives funds from the account holder, the online program will do the rest of the work. Its simplistic interface is fetching a lot of attention from new investors.</p>



<h3>Initiate A Startup Business</h3>



<p>Yes, this option is on the list of&nbsp;how to invest 20k.&nbsp;It is indeed possible to start a business from home with such an amount. There are innumerable trending fields like a home baker, handcrafter, trousseau packer, handmade candles, organic soaps, and whatnot. The list is endless. Find your skill, put money into it, and turn it into a fantastic moneymaking business.</p>



<p>Do not expect wowing and bulky results in the initial days. Though it is possible to get big clientage by luck and talent even in the beginning, building a business takes time. Invest some portion and not the whole to avoid any demotivating instances. Take lessons, know the market, and then plan accordingly.</p>



<h3>Invest in yourself</h3>



<p>In the fast-paced lives and cutthroat competition, people usually forget to spend on their holistic development. And no, nobody is asking to use all the 20k on you. But it is acceptable to use some part of this amount to improve own knowledge, gain a life-changing skill, bettering own health, or other personality development programs.</p>



<p>Keep a check on not going overboard and draining all that you have. Chalk out a budget, provide for other investments, and stick to the plan. Some of the beneficial ways&nbsp;to invest 20k&nbsp;on you can be taking up a specialized course like culinary skills, learning a foreign language, a gym membership, a mentally refreshing course, certified courses for resume, and much more.</p>



<h3>Put In Precious Masterworks</h3>



<p>Is it surprising to have this option of&nbsp;how to invest 20k?&nbsp;But then, who knows how plush this idea can prove to be. Everybody knows auction sales yield unimaginable profits, especially when it involves some specialties. Meaningful paintings, antique pieces, fine art creations, treasured metals, and many other things, if bought at a lower price, can be sold off at a higher label later.</p>



<p>Again, it is not necessary to invest the whole amount herein. Having just one yet opportunistic investment in such precious collectables is also a good option. Remember, even if this idea is not as volatile as the stock market, the probability of earning or losing is more or less the same.</p>



<h2>Bottom Line</h2>



<p>It is wise not to opt for just a single method while deciding&nbsp;how to invest 20k.&nbsp;Try to put money in various categories as mentioned above. Such a spread portfolio will help to cover losses, if any, from other methods. Stay profited!</p>


5 Ways On How To Invest 20k For Growth And Security

HOW BAD LUCK WORKS: OR WHY YOU ALWAYS LOSE GAMBLING (PART I)

How Bad Luck Works: Or Why You Always Lose Gambling (Part I)


<h2>1. What is New Money?</h2>



<p><a href="https://dictionary.cambridge.org/dictionary/english/new-money">New money</a>&nbsp;refers to an emerging group of rich people who are self-motivated and do not need family assets. This word often carries shades of ridicule and contempt.</p>



<p>There are many synonyms for new money such as:</p>



<ul><li>The expression “rags-to-riches” describes a situation where people go from poverty to become rich;</li><li>New rich;</li><li>China has the word “Fu Er Dai”, which refers to the children of the “Rich One Dai” &#8211; the first generation of wealth.</li></ul>



<h2>2. The origin of new money?</h2>



<p>The concept of “new money” existed before the word came into existence. In ancient Rome, the word “novus homo” (new man) was used to refer to people who were born with low status but were later allowed to work. The British also used the word “new man” to refer to the new aristocracy.</p>



<p>Similarly, in French there is a word nouveau riche that refers to people from the lower classes, but thanks to their wealth, they are promoted in society. The opposite of this class is “old money” &#8211; a group of rich people for many generations.</p>



<h2>3. Why is new money so popular?</h2>



<h3>New money pattern</h3>



<p>In 2004, 50 Cent mentioned himself being called “new money” in the rap song “This is how we do” because he succeeded so quickly.</p>



<p>In popular culture, the antagonism between new money and old money is frequently exploited. These two genders are also often labeled with stereotypes.</p>



<p>New money is said to have a lot of wealth but does not receive much credibility, especially when they often show off their wealth. This precept is also often equated with a lack of depth due to a lack of a good education.</p>



<p>Meanwhile, old money families are said to be well-to-do and well-ordered. An example of old money is the movie Crazy Rich Asians (2018), about the rich families of many generations in Singapore.</p>



<h3>New money in culture</h3>



<p>In literature, Gatsby is a typical figure of the new money world. Opposing Gatsby are Daisy and Tom, characters born in velvet. In addition, the movie The Wolf of Wall Street also addresses this topic through the character Jordan Belfort.</p>



<div class="wp-block-image"><figure class="aligncenter size-full"><img loading="lazy" width="768" height="541" src="https://i0.wp.com/54.193.88.134/wp-content/uploads/2022/05/image-3.jpeg?resize=768%2C541&#038;ssl=1" alt="Gatsby and Jordan are both played by Leonardo Dicaprio" class="wp-image-171" srcset="https://i0.wp.com/54.193.88.134/wp-content/uploads/2022/05/image-3.jpeg?w=768 768w, https://i0.wp.com/54.193.88.134/wp-content/uploads/2022/05/image-3.jpeg?resize=300%2C211 300w" sizes="(max-width: 768px) 100vw, 768px" data-recalc-dims="1" /></figure></div>



<p>Leonardo Dicaprio seems to be very familiar with the new money class as he both plays Gatsby and Jordan. Both characters are described as people who rise from nothing and then indulge in material life with lavish parties.</p>



<p>It can be seen that bad habits, pomp and generosity are the stereotypes that make people hate new money. In addition, TikTok trends specializing in “flex” of wealth also increase prejudice.</p>



<h3>The rejuvenation of the rich</h3>



<p>According to a Bloomberg report, the age of billionaires is getting younger and younger as business owners have been exposed to potential opportunities thanks to technology early on. New careers such as KOLs, influencers and the development of cryptocurrency also help “rejuvenate” the age of the “giants”.</p>



<p>However, it must still be emphasized that young people get rich early, be it people like Mark Zuckerberg &#8211; a self-made billionaire, or Paris Hilton with a rich family for several generations.</p>



<h2>4. How to use new money?</h2>



<p>A: Why do we hate new money but we can’t stop watching them?</p>



<p>B: Curiosity, I guess. Look at the Kardashians, they get all the hate but are still getting rich and famous.</p>


New Money – Why are rich young people be hated?


<p>According to FICO’s studies, approximately 11.7% of the US population has a credit score below 550 which is considered to be poor. This means that they need fast credit repair to enjoy a better life quality.</p>



<p>At the other end of the spectrum, less than 1% of Americans have a <a href="https://businesshilite.com/post/personal-finance-what-is-a-good-credit-score" target="_blank" rel="noreferrer noopener">perfect credit score</a> of 850.</p>



<p>If you’re somewhere in the middle or your credit card rating is very poor, we have good news for you! There are multiple ways you can repair your credit, and you can always work with a credit repair company to fix this problem.</p>



<p>Keep reading to find out a few efficient credit repair strategies.</p>



<h2>What Is Credit Score?</h2>



<p>A credit score represents a numerical representation of a citizen’s creditworthiness. It involves taking into account the credit history, and it reveals if a person is financially trustworthy.</p>



<p>The credit card score shows a number between 300 and 850. The higher the number, the more trustworthy a person is considered to be.</p>



<h2>Causes Of Bad Credit Score</h2>



<p>There are numerous reasons why your credit score can drop, such as:</p>



<ul><li>Paying the bare minimum on credit card bills</li><li>Declaring bankruptcy</li><li>Making late payments</li></ul>



<h2>6 Ways To Ensure Fast Credit Repair</h2>



<p>Although having a bad credit score is difficult, it is not the end of the world. A poor credit score can be reversed if one is committed to improving it.</p>



<p>Here are a few steps to repairing your credit:</p>



<h3>1. Check Your Credit Reports</h3>



<p>There are three major credit bureaus: Experian, Equifax, and TransUnion.</p>



<p>You are entitled to access the information from these credit bureaus for free once a year. The Fair Credit Reporting Act grants you this right by law.</p>



<p>Contrary to the popular belief, checking the credit reports from these bureaus won’t affect your overall score.</p>



<p>You should check the information on all three of these reports because the data can differ. This happens because the credit bureaus rely on receiving information from your creditors. They don’t actively look out for your financial information.</p>



<h3>2. Check For Mistakes</h3>



<p>Once you have your credit reports, you should check the data for errors. It is important to know that credit bureaus are not obliged to check the data before publishing it in your credit report.</p>



<p>If mistakes occur, you can file disputes with the credit bureau. They are required to modify the credit report if a mistake has been reported.</p>



<p>There are numerous things you can check for when inspecting your credit reports.</p>



<p>For example, misspelled names can negatively impact your score. More complex problems involve identity theft which can drastically bring your credit rating down.</p>



<h3>3. Negotiate Lower Interest Rates</h3>



<p>This might appear like a difficult step, but there is a chance that your creditors can lend a helping hand.</p>



<p>High-interest rates can decrease your credit rating. You should discuss with your creditors and negotiate lower interest rates to bring your score up.</p>



<p>This might mean you need to take out a loan and use it to pay off a high-interest debt. Some loans can be stretched up to 60 months, ensuring that the interest rates are minimal.</p>



<h3>4. Make Use Of Old Credit</h3>



<p>There is a tendency to get rid of old credit cards, but this can be a mistake, especially if you have a bad credit score.</p>



<blockquote class="wp-block-quote"><p>15% of your credit rating is represented by the age of your credit accounts. This includes both old and new credit cards.</p></blockquote>



<p>If you close old credit accounts, you’ll appear as a greater risk to creditors. On the other hand, if you preserve and use old credit cards, you show that you can handle long-term debt and pose a smaller financial risk.</p>



<p>Make sure that you use old credit cards often. It is possible that a credit card issuer will close it if you haven’t used it for a year, so remember to make periodic payments to keep your credit account open.</p>



<h3>5. Pay Credit Card Balances</h3>



<p>The way you use your credit card can have a huge impact on the credit rating. That’s why you should keep an eye on your current debts and spending habits.</p>



<p>If you carry a high debt on your credit cards each month, your credit score will drop significantly.</p>



<p>One way to fix this problem is to pay credit card balances. Specialists recommend keeping your credit utilization below 30%.</p>



<p>For example</p>



<blockquote class="wp-block-quote"><p>if you have a card with a credit limit of $10,000 and your balance is $4,000, your utilization rate would be $4,000 divided by $10,000 which equals 0.4 or 40%.</p></blockquote>



<p>By paying down this balance, you can reduce your utilization rate and have your credit score increase.</p>



<p>Furthermore, you can also negotiate with your creditors to increase your credit card limits. Although this might sound complicated, some issuers are willing to offer a soft pull on your credit limit.</p>



<p>As a result, your utilization rate will be adjusted in your advantage, but make sure that you still make efforts to pay down credit balances.</p>



<h3>6. Try To Remove A Late Payment</h3>



<p>A 30-day late payment can significantly decrease your overall credit score, so if you have one on your credit card, you should try to remove it immediately.</p>



<p>It is not easy to remove a recent late payment, but it is worth a try. For example, you can call your creditors and see if you can negotiate a goodwill adjustment.</p>



<p>If this is not possible, try to agree for automatic payments in exchange for the removal of the late payment. This might work in most cases, but if it doesn’t, you can also dispute the late payment on the basis of inaccuracy.</p>



<h2>Conclusion</h2>



<p>These fast credit repair strategies can put you on an ascending path when it comes to finances.</p>



<p>It is difficult to push your way through a bad credit rating, but it’s not impossible. Make sure that you read our articles to learn more about <a href="https://businesshilite.com/post/the-essential-credit-repair-guide-for-beginners" target="_blank" rel="noreferrer noopener">credit repair laws for beginners</a> and how to find a financial solution to your problem.</p>


6 Steps For Fast Credit Repair in 2022


<p>The path to the stock investment in the 20s is very diverse. There are those who actively participate by observing and learning from their predecessors. There are also new friends “jumping in” because of FOMO due to the recent hot increase in stocks. However, whether proactive or due to FOMO, the pitfalls for newcomers to the stock market are many, requiring good preparation. So what are the pitfalls here? How do we prepare?</p>



<h2>Pitfalls in cost</h2>



<p>The first pitfall is fees and taxes in stock investing. There are public fees, but there are also very vague fees.</p>



<p>The publicity fee is the fee that investors have to pay to the securities company (broker) every time they buy and every time they sell. Depending on the broker, service package, and transaction value, the feed rate can be from 0.1% to 0.35% of the transaction value. Besides, there are other fees related to the maintenance activities or other transactions of the account.</p>



<blockquote class="wp-block-quote"><p>For example, the fee is 0.15%, applied to an investor with an initial capital of $10.000 and buys and sells again and again with a frequency of 4 times/month. With 48 transactions to the limit of the account, the total fee will then be 48 x 0.15% x $10.000 = $720, or 7.2% of the capital spent.</p></blockquote>



<p>As such, the investment return must be much higher than this to offset the transaction fees, taxes, and other fees. If investors use x2 leverage, the cost can be up to 14%/year. It is not easy for long-term professional investors to have such a stable profit.</p>



<p>Another hidden cost that also greatly affects the bottom line of an investor is the spread, i.e. the difference between the buying and selling prices.</p>



<blockquote class="wp-block-quote"><p>For example, if the market price of a stock is $10, the bid price is %15 and the ask price is $9.5, the spread will be 1%. If the bid price is $11 and the ask price is $9.9, the spread will be 0.2%.</p></blockquote>



<p>The size of the spread does not only affect the investor’s final profit. It is also an indication of the liquidity of the stock. The larger this number, the lower the liquidity.</p>



<h2>The Pitfalls of Using Leverage</h2>



<p>The second pitfall is using leverage to invest without much experience. Many investors win a lot when they first enter the market, just like a new hand gambling legend.</p>



<p>At first, they may only spend a little capital to explore, but when they win, they become subjective, thinking they are very good. Little did they know that it could be luck, right at the time when the market cycle was up.</p>



<p>Overconfidence has led many new investors to invest all (all-in) into securities, moreover, to borrow money through margin to invest.</p>



<p>But using margin is a double-edged sword, it can help increase returns, but can also make losses faster and more severe. For example, in the case of using margin x2, if you lose 10%, your real loss will be more than 20% because you still have to pay interest.</p>



<p>The danger is that when using margin, the amount of investment capital has increased much. Usually, when exploring, investors spend a small amount, like $1000, for example, seeing a profit of 10% in a few days is happy.</p>



<p>But when you put in $100.000, use an extra x2 margin, even if the market adjusts only 5%, the loss will also reach $10.000, enough to wipe out the previous profit. Compared to the original capital, now 100% loss.</p>



<h2>Trading Without a Stop Loss</h2>



<p>The third pitfall is not cutting loss in time. In finance, when calculating the profit/loss ratio of continuous investments, we must use the geometric mean.</p>



<blockquote class="wp-block-quote"><p>For example, a 50% loss, then a 50% gain is still a 25% loss, not a breakeven. Assuming there is $10.000 to invest, loss before profit, then the capital will be $10.000 x 0.5 x 1.5 = $7.500.</p></blockquote>



<p>You can easily find on the Internet the calculation of how much profit you need to cover your loss. For example, a 10% loss requires an 11.11% profit, a 20% loss requires a 25% profit, and a 50% loss requires a 100% profit.</p>



<h2>Being too adventurous</h2>



<p>The fourth pitfall is being too adventurous, and then investing in complex financial products like derivatives, risky products like CFDs, or investing on unlicensed exchanges.</p>



<p>Direct investment in underlying securities through securities companies is also very risky. Therefore, investing on online exchanges, with complex products, with high leverage, the risk will certainly be more than double.</p>



<p>Investing, like any other business, requires preparation. Faced with so many pitfalls, what should new investors prepare?</p>



<h2>Prepare for knowledge</h2>



<p>In stock investment, the first thing that needs to be equipped is knowledge. The knowledge here is the foundation related to the financial position of the business because the intrinsic value of a stock is the discounted present value of the future cash flows.</p>



<p>In addition, it is necessary to understand and distinguish between book value (book value of equity), intrinsic value, and market value (market value or pricing). The truth is that even many experienced investors can’t distinguish between valuation and pricing for a stock.</p>



<p>But knowledge of corporate finance alone is not enough. The performance of an enterprise is highly dependent on the ability of current and future leaders, that is, corporate governance.</p>



<p>In addition, investors also need to have a macro knowledge of the industry, the economic cycle, the monetary policies of the major central banks as well as the fiscal policies of these governments.</p>



<p>Take for example in the economy. Let’s ask the same question as with industries such as finance, energy, real estate, consumer goods, technology, etc., in each period, which industries will prosper and which will decline?</p>



<p>When there are major changes in policy, for example:</p>



<blockquote class="wp-block-quote"><p>in the US, the Democratic Party takes power instead of the Republican Party, which industry will benefit?</p></blockquote>



<h2>Mental preparation</h2>



<p>The second preparation in investing is psychological. The stock market is an unpredictable place, no matter how hard everyone tries to do it.</p>



<p>Over the long term, markets all grow with the size of the economy, but there will always be corrections or crashes. Among these, corrections can be frequent and unpredictable.</p>



<p>Two important psychological signs in the stock market are greed and fear. Too greedy will easily fall into a swinging peak, and too afraid will fall into a sell-off, selling at market value when the market is plummeting.</p>



<p>Therefore, experienced investors differ from new investors in that their psychology is stable. These investors do not flinch when the market corrects sharply, or impulsively when the market is hot.</p>



<h2>Investment methods</h2>



<p>The third preparation is the investment methods. In investing, it can be divided into two schools: buy and hold and buy and hold. Regardless of school, it is necessary to understand the principles, ways of portfolio diversification, and portfolio risk management.</p>



<p>For example, for an asset class with a high level of risk, ie large price volatility, it should only account for a small proportion of the portfolio. For example, cryptocurrencies should only account for a maximum of 10% of total assets.</p>



<h2>Practice and build good habits in investing</h2>



<p>In investing, there is a saying that “knowing is not doing”, which means knowing is not enough, you have to do it. This is to avoid falling into the situation of Rote Learning.</p>



<p>The psychology of simulation investing is very different from real investing. Opening a virtual account, losing 30-50%, the mentality is not the same as spending $10.000 real money to invest. The 20% loss on the $10.000 portfolio is also very different from the 20% loss on the 1 billion portfolio.</p>



<p>When the mind is different, the action will also be different. In most cases, when not calm, it is easy to make the wrong decision.</p>



<p>In your 20s, investing in your career is the most important. It is a sure source of profit and is likely to increase many times in the future. Investing in your expertise, developing a professional network to advance at work is an effective investment.</p>



<p>When there is an accumulation, this is the time to consider investing in securities. Before starting, you need to have the preparations as mentioned above. And make sure you’re aware of the pitfalls.</p>



<p>Investing is a long road and it’s not easy to get rich quick. When starting out in your 20s, think that you have 20 to 30 years to execute your financial plan.</p>



<p>The hardest thing in investing is to practice discipline, perseverance and a strong mentality. If you can do it, you will be successful.</p>



<p>Good luck fellows with your investment and wish you success in your future endeavours.</p>


How to Start Investing in Stocks: A Beginner's Guide

How to Start Investing in Stocks: A Beginner’s Guide


<p>Have you ever found yourself saying,</p>



<blockquote class="wp-block-quote"><p>“I don’t know how to increase my credit score?”</p></blockquote>



<p>Fret not; it’s a simple process!</p>



<p>Building credit is all about paying things off and being smart about borrowing. While it may seem difficult in the beginning, you have access to a plethora of credit-building tools. One of the most impactful is a credit mentor (or credit manager).</p>



<p><strong>But what is a credit mentor?</strong></p>



<p>They’re essentially someone that specializes in building credit. Hiring one would bring you a plethora of benefits, all of which we’ll outline!</p>



<p>Here are 6 benefits of having a credit manager!</p>



<h2>1. RECOVER FROM DEBT</h2>



<p>One of the benefits of working with a credit manager is being able to recover from debt. Because many people struggle with repaying debt, a credit manager can implement several strategies to prevent you from harming your credit score.</p>



<p>Credit managers often do this by helping you determine which debts are the most important. For example, those with higher interest rates are usually the ones they recommend to target because you can save money by quickly repaying them.</p>



<p>Aside from that, they’ll let you know when you’ll be secure enough to start borrowing again. If you’re looking to purchase a house or vehicle with a loan, it’s best to work with them beforehand to ensure your credit is good enough.</p>



<h2>2. PLAN MORE EFFECTIVELY</h2>



<p>Learning how to raise your credit isn’t difficult, but coming up with a financial plan is. Credit managers not only help their clients recover from debt but also teach them about budgeting and saving.</p>



<p>With a credit manager, you can come up with a thorough plan towards any goal. For example, if you want to buy a house, they can help you figure out how much money to set aside over a period. Providing that you follow the plan, you shouldn’t have a problem accomplishing any goal.</p>



<p>Depending on your income, debt, and credit score, they can tell you how soon you can acquire something. This will further help you put together a plan that’ll let you buy the things you want while also saving.</p>



<h2>3. REDUCE EXPENSES</h2>



<p>People often overlook credit managers’ abilities to help them reduce expenses. However, a credit manager can act similar to an accountant and help you figure out what you’re spending too much money on.</p>



<p>Many expenses that people have are either unnecessary or have cheaper alternatives. If you can’t eliminate something, a credit manager will find something to substitute that allows you to save more.</p>



<p>Their priority is ensuring you know how to raise your credit, which involves saving and tackling debt. To do this, they’ll want you to have as much money as possible.</p>



<h2>4. BUILD CREDIT SCORE</h2>



<p>When you want to know how to get credit help, you should start working with a credit manager immediately. Increasing a credit score is simple, so you won’t have a problem learning how to.</p>



<p>The first thing a credit manager will do is go over your income and debts. This will give them enough info to determine how you can approach your debt situation.</p>



<p>In many cases, they’ll have you focus on your loan with the highest debt. This is because paying it off would help you pay less than you would if it continued building interest.</p>



<p>While paying the main loan off, a credit manager will have you make minimum payments towards your other loans. This is crucial because it’ll prevent your score from decreasing due to missed payments.</p>



<p>Some credit managers advise their clients to get credit-building cards after they’ve paid off their debts. These cards are often secured by having borrowers deposit their line of credit. For example, depositing $500 would allow you to spend up to $500.</p>



<h2>5. ACQUIRE BETTER LOANS</h2>



<p>After learning how to get credit help, a credit manager will help you find loans with better terms. Of course, this requires having a good credit score, which you’ll have already taken care of.</p>



<p>More favorable loans often have lower interest rates and allow people to borrow more. When you want to get a larger loan for something like a house or vehicle, it’s best to wait until your score is high to avoid the interest rates.</p>



<p>If you inform your credit mentor that you’re looking for a specific loan, they’ll help you find the best one that suits you.</p>



<h2>6. DISPUTE CREDIT REPORT ERRORS</h2>



<p>Another problem that many people have when trying to build credit is understanding how to dispute a credit report. Getting an error on a credit report isn’t common, but it may negatively affect your score unless you dispute it as quickly as possible.</p>



<p>Credit managers can do everything for you to ensure that the error is disputed properly. They’ll provide any necessary documents and explain why it’s an error.</p>



<p>Shortly after correcting it, you should see your credit report reflect the change. Depending on where you go to get a report, you may be able to get a second one without paying, such as with Annual Credit Report. You can also ask your credit manager for recommendations.</p>



<h2>CONSIDER WORKING WITH A CREDIT MANAGER TODAY</h2>



<p>After reading this article, you no longer need to ask, “what is a credit mentor?” With someone like a credit manager by your side, you’ll have no problem building credit within a few months.</p>



<p>We encourage anyone struggling to build credit to hire a credit manager as soon as possible. The quicker you are to tackle debts, the easier it’ll be to raise your score.</p>



<p>Check out our other articles to learn more about a variety of topics!</p>


6 Benefits of Having a Credit Manager


<blockquote class="wp-block-quote"><p>I don’t know how to boost my credit. What should I do? The process is simple!</p></blockquote>



<p>Repairing credit is something that many people struggle with, especially those that have a lot of debt. Fortunately, out of all the credit repair tools, the most effective one is your wallet.</p>



<p>In this credit repair tip guide, we’ll outline all the main things you can do to repair your credit as quickly as possible. Not only will this help you get out of debt, but you’ll also have access to better loans.</p>



<blockquote class="wp-block-quote"><p>“So how can I repair my credit?”</p></blockquote>



<p>Read on to learn everything you need to know!</p>



<h2>Get a Credit Report</h2>



<p>When searching for “how to fix my credit?” people are often met with articles that tell them to get a credit report. This is because getting a credit report is the only way you can find out exactly what your credit score is.</p>



<p>To get one, you’ll need to visit the site of a reputable credit history service. Some of the most popular is Annual Credit Report, Credit Karma, and Credit Sesame.</p>



<p>You can also use services that provide rough estimates of your score without affecting it. Mint, a popular money management tool, provides regular credit updates to users.</p>



<p>If you have a credit card with Capital One, you can also see how much your credit score is. Keep in mind that these numbers are estimates, so your score may be drastically different.</p>



<h2>Dispute Errors</h2>



<p>After getting a credit report, the next thing you should do is dispute errors. While it isn’t common to see errors, they’ll affect your score. Because of this, it’s best to dispute them as quickly as possible.</p>



<p>When disputing an error, you’ll need to explain what you have a problem with. In some cases, you’ll have to send documents. For example, if your credit report says that you’ve missed payments, you can show that you’ve never missed one with receipts.</p>



<p>If your credit score changes after disputing an error, you may be eligible for a free credit report with some services. Annual Credit Report often allows users to get a free one within 12 months to see changes.</p>



<h2>Stop Borrowing</h2>



<p>With those two steps out of the way, you have more options if you’re looking to continue increasing your score. The main one involves avoiding debt altogether by not borrowing.</p>



<p>While increasing a credit score often requires borrowing money, many people have lower scores because they borrow too much. When this happens, you should immediately stop borrowing and focus on repaying debt.</p>



<p>If you’re forced to borrow, ensure that it’s done via credit card. Applying for personal loans can affect your credit more than something like a credit card, which is widely accepted.</p>



<p>Should you fail to make a credit card payment, the repercussions won’t be as heavy as they’d be with a larger loan. Missing a personal loan payment can come with large fees and high-interest rates.</p>



<h2>Repay Debts</h2>



<blockquote class="wp-block-quote"><p>“I still don’t understand how to repair my credit!”</p></blockquote>



<p>The answer is to repay debts. However, you must use a certain strategy that’ll ensure your score increases.</p>



<p>Many people have the misconception that they should start tackling all of their debt at once. While this can help, you’ll end up spending more money because of interest rates.</p>



<p>Learning how to repair my credit was as simple as focusing on the debt with the highest interest rate. If you put most of your money towards your loan with the highest interest, you’ll avoid paying more money on it over time.</p>



<p>While focusing on that debt, you should make minimum payments on the others. This will prevent your credit from falling.</p>



<p>After the initial loan is paid off, you can move on to the next loan with the highest interest rate. Check out tips from Pinnacle Credit Management to learn more about how to repay debts effectively.</p>



<h2>Use a Credit-Building Card</h2>



<blockquote class="wp-block-quote"><p>“Can I repair my credit with a credit card?”</p></blockquote>



<p>Most definitely, but use one after paying everything off.</p>



<p>Using a credit card is one of the best credit repair tools because of how simple it is. Rather than taking hits to your score for constantly applying for loans, you only need to apply for a credit card once.</p>



<p>After getting one, you can continuously borrow money within your limit. If your line of credit is $300, you can’t borrow more than that.</p>



<p>Credit-building cards are unlike traditional credit cards in that they often require users to set a line of credit with a down payment. For example, if you want to have a $500 line of credit, you’ll need to pay $500 when getting the card.</p>



<p>This ensures the lender doesn’t lose money and it gives users a chance to determine how much they want to borrow. You’ll see many people recommend this strategy when searching “how to fix my credit.” As your credit score increases, you can get more favorable cards.</p>



<p><strong>Start Using This Credit Repair Tip Guide Now</strong></p>



<p>Now that you know how to repair your credit, you should get started as soon as possible. Using this credit repair tip guide, you’ll no longer think “I don’t know how to boost my credit.”</p>



<p>We encourage you to start by putting as much money as you can towards your debt. Only after doing that should you use a credit card to continue repairing your credit.</p>



<p>Browse our other articles to learn more about credit repair tools and other topics!</p>


Credit Repair Tip Guide: Do You Need a Professional?