Why Businesses Now Need To Balance Profit With Purpose

Social media is a powerful, strategic tool with the ability to connect millions of people around the world, and shape their opinions. The current President of the United States would agree.

But for businesses, it is a double-edged sword. While Instagram, Twitter and Facebook are an effective way for businesses to connect with their customers and build following, if something goes wrong, the mistake is on show for the world to see.

Social media has given a voice to, and shifted power from businesses and governments, to individuals who otherwise would not be heard. Did you know that almost half (45%) of the world’s population is now on social media? (Source: Statista)

People now have access to information about corporate behavior like never before. Socially conscious consumers show no restraint in sharing incidents of corporate negligence on social media. They use social media platforms to organize themselves around issues that are important to them, and strongly express their disapproval for unsustainable business practices.

As per the Cone Communications 2013 Global CSR study of more than 10,000 citizens in 10 of the largest countries in the world by GDP, including India, 62% consumers say they engage with companies via social media, and 26% use social media to share negative information.

They use their voice and purchasing power to punish irresponsible businesses, forcing them to clean up their act, thus bringing about the change they want to see in the world.

A study by the New York Times Consumer Insight Group identified major reasons people choose to share what they do on social media sites. 84% of participants in this study said that they shared to support a cause. Clearly, selling a good product or service is no longer enough. And doing business responsibly is no longer a choice.

Before the advent of social media, social, ethical, environmental misdeeds of corporates used to go unnoticed. But like Mark Zuckerberg correctly said, “When you give everyone a voice and give people power, the system usually ends up in a really good place”

For instance when Nike was accused of deploying child labor in the production of soccer balls, or when the garment factory of Benetton, Primark, and Walmart collapsed in Dhaka, the brands faced severe criticism and protests from consumers and activists all around the globe.

With growing number of socially conscious consumers, especially millennials and Gen Z, companies can expect to see many more instances of consumer-initiated protests and boycotts in the future.

Gen Z, those born between 1996 and 2010 are expected to account for 40% of all consumers by 2020, according to research from MNI Targeted Media. Doing their part to make the world a better place is important to 68% of them, and this directly impacts their buying behavior.

94% of Gen Z shoppers and 87% of millennials believe that companies should address urgent social and environmental issues. (Source: Cone Communications 2013 Global CSR study)

In the long run customers will choose companies that they trust, that share their values and that act responsibly. And businesses that don’t will end up losing their customer base.

In a survey by Greenmatch, a renewable energy consulting agency, 72% of Gen Z respondents said they are willing to shell out more money for goods and services produced in a sustainable way. And nearly half (49%) have boycotted a brand because it behaved in a way that was against their values.

In a mobile-savvy country like India, reputation loss due to negative social media publicity can have serious implications for the business. As per media reports, when high levels of lead and MSG were found in Nestlé’s star product Maggi noodles in 2015, the company lost much more than its market share due to their poorly managed social media responses.

Brands and businesses must now necessarily adapt to the new world order, and be as committed to and innovative about doing good as they are about maximizing profits.

So what would be our one tip to businesses that want to avoid a social media nightmare? Act responsibly, because there is no dodging the animal called social media.

Understanding PCI Compliance and Its Significance for Businesses

The Imperative of PCI Compliance for Business Security
The Payment Card Industry Data Security Standard (PCI DSS) is a set of requirements designed to ensure that all companies processing, storing, or transmitting credit card information maintain a secure environment. The PCI Security Standards Council, which was founded by major credit card companies, developed these standards to protect cardholder data from theft and fraud.

Why Businesses Must Prioritize PCI Compliance
Security Enhancement The primary goal of PCI DSS is to bolster security during payment card transactions. Non-compliance can result in substantial fines from credit card companies or banks, sometimes reaching thousands of dollars. In severe cases, non-compliant businesses may face termination of services by these financial institutions. By adhering to PCI standards, businesses not only avoid penalties but also demonstrate a commitment to protecting customer data, which can enhance their reputation and customer trust.

Industry Best Practices Compliance with PCI standards has become a benchmark for good business practices. It assures customers of the reliability and security of financial transactions, reducing associated risks. Businesses that comply with PCI DSS can deliver financial services more effectively and provide customers with peace of mind when sharing personal information.

Building Trust and Recognition PCI compliance benefits not only customers but also credit card issuers and financial institutions by enhancing their reputation. It is a critical factor in establishing trust with customers and maintaining good relationships with financial partners, helping to prevent fines and service disruptions.

Consumer Confidence In today’s fast-paced commercial environment, where electronic transactions are commonplace, security is paramount. PCI compliance is essential for any merchant handling sensitive credit card information, as it reassures customers of the safety of their data.

Key Requirements of PCI Compliance
PCI DSS encompasses multiple layers of protection that must be implemented by merchants, service providers, and financial institutions during credit card transactions. These requirements include:

Maintaining a vulnerability management program
Establishing and upholding an Information Security Policy
Conducting regular network testing and monitoring
Implementing security management measures, such as network security maintenance
Designing software to protect cardholder data
Implementing Access Control Measures
Businesses must engage in activities that validate compliance, such as quarterly scans and onsite reviews by Qualified Data Security Companies (QDSCs). While there are other data security regulations, such as the Sarbanes-Oxley Act and the Health Insurance Portability and Accountability Act (HIPAA), PCI DSS is often considered the most straightforward and precise standard, even for small merchants.

The Role of ASVs in Ensuring PCI Compliance for Online Businesses
For online business owners, the first step towards PCI compliance is to engage an Approved Scanning Vendor (ASV) to conduct compliance testing on web servers. PCI scanning is typically required every three months, as set by the PCI Security Standards Council. Some companies offer daily PCI scanning, but this is generally seen as excessive and can cause server disruptions due to the intensity of the tests. Once a server issue is resolved and it meets PCI compliance requirements, problems are unlikely to recur quickly, making daily tests unnecessary.

It’s important for online business owners to be wary of sales tactics promoting daily PCI scanning tests, which can place undue stress on websites without providing additional value. Instead, businesses should focus on displaying credibility and trust to their customers. Some ASVs provide a web seal to online businesses that pass PCI compliance tests, which can enhance online sales by signaling a secure shopping environment to consumers.

While it is not legally mandated for online businesses to be PCI compliant, it is a prudent choice to protect against external threats and maintain customer trust.

In conclusion, PCI Compliance is a vital aspect of modern business operations, especially for those involved in online transactions. By meeting these standards, businesses can ensure the security of their customers’ payment card information, maintain their reputation, and avoid costly penalties.

Upstox Review: Brokerage Charges, Margin, Trading & Demat Account

In today’s world, where everyone wants to be as luxurious as celebrities, the regular income is not at all enough. People aspire to buy all the luxuries and amenities as soon as possible. To fulfill their such wishes they tend to increase the horizon of their earnings, which could give them a hope of additional income with no further time investment.

In such a case, online trading platforms have come as a solution to this problem. There is a long list of online trading platforms which provides services in the investment and trading but one of the most reliable and sensible application is Upstox.

Upstox is one amongst the best discount brokers available in India, especially for the traders. On One side the Upstox provides it’s traders with the fastest trading platforms which are the main need to book the high profits in day trading. On the other side, its highly convenient as you only need to pay only a flat Rs 20 per trade irrespective of your trade volume.

In this article we are going to give a comprehensive review of this discount broker who have been making big in the industry since the past few years.

About Upstox

The company, Upstox is a tech-first low cost broking firm in India that is providing trading opportunities at indomitable prices. This company provide trading on different segments such as commodities, equities, currency, futures, options which are accessible on its Upstox Pro Web as well as on Upstox Pro Mobile trading platforms.

Upstox is supported by a group of investors which encompasses Kalaari Capital, Ratan Tata and GVK Davix.

This trading platform offers trading, analysis, charting and many other rich trading features. This platform makes it susceptible and simple to place orders through mobile phones as well as web browser. Upstox trading outlet is created on Omnisys NEST OMS (Order Management System) and Omnisys NEST RMS (Risk Management System).

The best thing about Upstox is that it offers absolutely free trading account and also free trading in Equity Delivery segment. Trading in Equity F&O, Equity Indra-day, Currency Derivatives and commodities is available through Upstox Pro only. UpStox Pro is nothing but the paid service of UpStox for traders.

Note: Get the unbiased review of Upstox and check its trading app, Demat account opening charges,Upstox brokerage, margin, plans, features, investment option, ratings & review for free on Select by Finology.

Ratings of Upstox

Overall Rating

2.5/5

Fees

3.5/5

Brokerage

3.6/5

Usability

2.7/5

Customer Service

2.4/5

Research Capabilities

2.4/5

A comparison of upstox trading plans

As stated above there are two different plan in the upstox namely, upstox basic plan and upstox priority pack. Let’s see what’s the difference between the two.

Segment

Upstox Basic Plan

Upstox Priority Pack

Brokerage – Equity Delivery

Free

Free

Brokerage – F&O, Commodity, Currency

¹20 per trade or 0.05% (whichever is lower)

¹30 per trade or 0.05% (whichever is lower)

Margin – Intraday

NSE/BSE Cash

15x

20x

Index Futures

4x

5x

Stock Futures

4x

4x

Index Option Sell

4x

5x

Stock Option Sell

4x

4x

NSE Currency

4x

4x

MCX Future

2.5x

3x

Margin – CO/OCO Orders

NSE/BSE Cash

20x

25x

Index Futures

10x

14x

Stock Futures

4x

6x

NSE Option Buy

1.33x

2x

Index Option Sell

4x

5x

Stock Option Sell

4x

4x

NSE Currency

4x

5x

MCX Future

3x

4x

What are the charges in the Upstox?

Though the platform upstox is completely online but still there are some charges that the trader is required to pay while a wailing the services from the Upstox. Here, we will look at some charges that upstox is charging currently.

The first one is the Upstox Account Opening Charges which is ¹249.
The another one is Upstox Demat AMC: ¹300 per year (paid monthly).

Upstox Prepaid Brokerage Plans (¹249, ¹499 or ¹999)

Each and every upstox customer wants to purchase one of the following prepaid brokerage plans so that he can open Upstox account. It is necessary for a trader to buy a prepaid brokerage plan with this platform, upstox. This plan is also mandatory for those people who would want to do only equity delivery trades which are free from the brokerage.

Plan

Customer Pays

Customer gets brokerage worth

Extra brokerage earned

Standard Plan

¹249

¹400

¹151

Advanced Plan

¹499

¹1,000

¹501

Premium Plan

¹999

¹2,500

¹1501

Upstox Equity Delivery Charges & Intraday Charges

Upstox Charges

Equity Delivery

Equity Intraday

Brokerage

¹0

¹20 per executed order or 0.05% (whichever is lower)

STT

0.1% on both Buy and Sell

0.025% on the Sell Side

Transaction Charges

¹325/crore

¹325/crore

Demat Transaction Charges

¹18.5 per scrip (only on sell)

¹0

GST

18% (on Brokerage + Transaction Charges)

18% (on Brokerage + Transaction Charges)

SEBI Charges

¹5/Crore

¹5/Crore

Stamp Duty

*

*

Upstox Equity Future and Options Charges

Upstox Charges

Futures

Options

Brokerage

¹20 per executed order or 0.05% (whichever is lower)

Flat ¹20 per executed order.

STT

0.1% (on Sell Side)

0.1% (on Sell Side)

Transaction Charges

¹210/crore

¹5500/crore on premium turnover

Demat Transaction Charges

¹0

¹0

GST

18% (on Brokerage + Transaction Charges)

18% (on Brokerage + Transaction Charges)

SEBI Charges

¹5/Crore

¹5/Crore

Stamp Duty

*

*

What are the Upstox Currency Charges?

Upstox Currency brokerage charge is ¹20 per committed order or 0.05%.

Upstox Charges

Currency Futures

Currency Options

Brokerage

¹20 per executed order or 0.05% (whichever is lower)

Flat ¹20 per executed order.

STT

No STT

No STT

Transaction Charges

NSE: 0.00013% | BSE: 0.00062%

NSE: 0.065% | BSE: 0.026% (on premium)

GST

18% (on Brokerage + Transaction Charges)

18% (on Brokerage + Transaction Charges)

SEBI Charges

¹5/Crore

¹5/Crore

Stamp Duty

*

*

What are the Upstox Commodity Charges?

The Commodity brokerage of Upstox is ¹20 per executed order or 0.05%.

Upstox Charges

Commodity Futures

Commodity Options

Brokerage

¹20 per executed order or 0.05% (whichever is lower)

Flat ¹20 per executed order.

STT

0.01% on sell trade (Non-Agri)

0.05% on sell trade

Transaction Charges

0.0031%

0.002%

GST

18% (on Brokerage + Transaction Charges)

18% (on Brokerage + Transaction Charges)

SEBI Charges

¹5/Crore

¹5/Crore

Stamp Duty

*

*

What are the hidden charges under Upstox?

Here, the first charge includes Call & Trade charges that is Rs. 20 per executed order
Another charges include Physical contract notes charges that are ¹25 per contract note plus courier charges. (Here, Digital contract notes are free.)
The last one is Instant Money Transfer Fee which is ¹7 per transfer.
Final Words

As it was said above, the needs of people are never-ending and nowadays it has become necessary for each person to try hands in different fields so that there is increase in the perimeter of their earnings.

Trading is definitely the best option where you could earn without any additional efforts. Upstox comes as one of the most reliable and and sensible platforms for beginners as well as professionals. The application of Upstox is designed in such a manner that it suits both of the groups.

Day by day, upstox is coming up with new features and services that is increasing its customer base and is truly making upstox the best and a leading trading platform of the smart future.

Rainstar Capital Group Marks 7 Years In Business in 2021

Rainstar Capital Group, a Grand Rapids, Michigan based national debt advisory firm celebrates in 2021 its 7th year in business. The firm noted that it was excited for 2021 and the potential commercial lending solutions it would be assisting clients within the new year.

“Seven years ago in January of 2014 when I launched the firm I never thought we would grow to the size we are today,” noted Rainstar’s CEO. “It has been a blessing to serve our many clients over the years and continue to innovate our capital markets platform for clients seeking commercial real estate, business and equipment financing!”

Rainstar Capital Group is a national debt advisory firm based in Grand Rapids, Michigan. RCG provides advisory debt capital through its multiple lending platforms with over 250 registered lenders for clients with commercial real estate, corporate finance, small business and equipment financing needs. Product lines include: Unsecured Lines of Credit, Revenue Based Lines of Credit, Revenue Based Advance, Merchant Cash Advance, Business Lines of Credit, Inventory Financing, Purchase Order Financing, Equipment Leasing, Accounts Receivables Factoring, CMBS loans, Agency loans, Bridge Financing, Hard Money and Commercial Contractor Credit Lines.

“2021 will be a record year for commercial lending,” noted Nederveld, “We expect our lending platforms for the PPE, E-commerce, staffing, manufacturing, import/export, distribution and wholesale industries to continue to grow. On the commercial real estate side we expect to see a lot of new construction, refinancing and purchasing of distressed assets occurring. Finally, we feel equipment will continue to be a strong driver for Rainstar as companies need growth and turn around capital!”

Rainstar Capital Group is focused on serving clients with the following core product lines:

24 Hour Term Loans up to $1M

24 Hour Equipment Loans up to 500k

2 Week Equipment Financing up to 50M

48 Hour Cash Advances up to $5M

7-10 Day Commercial Real Estate Bridge Loans

24 Hour Fin Tech Credit Lines up to 250k

2 Week SBA Express Loans at 5/6% rates up to 350k

2 Week Inventory Financing from 500k to 50M

“We are thankful to be able to celebrate this milestone of 7 years in business and look forward to setting commercial lending records here in 2021!”

Rainstar Capital Group noted that it was actively providing growth capital and they continue to grow their internal team of Managing Directors with a focus on hiring commercial bankers and capital market professionals. Interested finance professionals can apply here: rainstarcapitalgroup.com/careers

5 Ways You can Learn More About Forex Trading

Forex trading has become very popular in the recent past because many people have learned to be successful traders, and they enjoy massive profits from the forex market. While this market is very lucrative, you need to have a lot of patience before you start making successful trades. Ideally, you have to constantly learn new trading techniques, and at the same time, you should also learn how to be disciplined when trading. While being a professional trader might take some time and hard work, the results are worth it. In this article, we have listed 5 ways you can learn more about forex so that you become a successful trader.

Learning From a Professional
You shouldlearn from a professional trader and forex educator since people who have traded for a long time have adequate knowledge, and they also understand the market dynamics well. Having such a person to teach you about forex may help you to understand many things that will otherwise be difficult to learn on your own.

Use Demo Accounts
The best way to learn forex trading is by trying it out with virtual money. Do not attempt to learn forex with your hard-earned cash because you may end up losing your money. In a demo account, however, you do not get to use real money in the trades, but you still apply the same concepts when making a trade. The same techniques that are used in reading chats in a real forex account are also used when making a trade in a demo account. A demo account will give you a solid foundation on the techniques of making trades, and you will get to experience the feeling of losing on a trade or making a profit, even if it is just virtual money. Frankly, nothing can beat experience, and having ademo account gives you the best experience in forex trading.

Use Micro Forex Accounts
While a demo account can be incredibly helpful in ensuring that you learn all the dynamics of forex trading, you will have to start risking your hard-earned money after some time. The best way to start trading real money is by using a micro forex account that enables you to make small trades at a time. This will help in giving you exposure to the real forex market. You will also learn how to limit your trades to avoid making too many unnecessary trades that may end up in a loss. Using a micro forex account to learn about forex trading is an excellent way of getting yourself acquainted with the real-time dynamics of the forex market.

Learn Everything About Currencies
The most fundamental thing about forex is understanding what you are trading. As such, you should ensure that you understand everything about the currencies that you will be trading. Don’t just place a trade on any currency that is moving because this may result in several reckless trades that will lead to massive losses. Therefore, ensure that you understand the currencies that you are going to trade by knowing the trends of such currencies to determine whether buying or selling them will profit you. Trading currencies in the forex market is an excellent move because there are very many currencies, which gives you many options. Nonetheless don’t try trading all the currencies. You should select the ones that seem profitable and deal with those.

Learn Risk Management
While it is possible to make substantial profits in the stock market, it is also possible to incur massive losses during bad days. As a result, it is important to learn how to manage risks in forex to ensure that you don’t lose a lot of money when a certain trade goes wrong. If you want to become a good risk manager in forex, you have to learn how to control your fear and excitement. These emotions may trigger you to make certain decisions that may be very risky. Always base your trading decision on logic and not emotions so that you become more clinical in the trades you make. Also, learn about some risk mitigation techniques that help reduce the loss you get when a certain trade does not go your way.

Indeed, there are many ways of learning forex trading, and it would be best if you used the ones we have listed in this piece because they are the most effective methods.

Things to Know Before Investing in Mutual Fund

Mutual Funds have emerged as a preferred investment option of many; especially after the marketing thrust of AMFI (Association of Mutual Funds in India) it generated sufficient curiosity with its humourous yet informative ad campaigns.

Mutual Funds provide the convenience of investing minus the hassle. They are managed by smart fund managers who are there to deliver great returns for their investors.

So let’s get started,

Why invest in Mutual Funds?

Mutual Funds not only offer diversification and hassle-free investments but also provide great returns. Better returns than all the traditional investment instruments like FD. Start with a goal in mind and the timeline you’d like to keep investing. This helps in choosing the right Mutual fund that will help achieve your financial goal.

Consider the Risk factor

Investment is a continuous process and requires steely determination. The risk in mutual funds is varied and there are mutual funds to suit every type of investor. High, Moderate, and Low risk but apart from that one must know that mutual funds are subject to market risks. It’s imperative that you select the fund according to your risk profile. High-risk funds can give great returns but they can go either way too.

Mutual Funds are diversified

The biggest USP of mutual funds is its ability to diversify. One mutual fund can hold multiple stocks spread across many sectors so diversification is inherent. It is, however, advisable to spread your investment in 3-4 types of funds or baskets. This should cover the diversification part.

Know different loads

There are some expenses associated with Mutual Funds. It’s helpful if they are known beforehand like,

Entry Load: These are fees charged at the time of purchasing the mutual funds

Exit Load: These are fees charged at the time of redeeming your investment from a mutual fund

Depending on the fund’s policy they may charge one type of expense or all or even none.

Past Performance – Future Performance

As with stocks, it’s the same with Mutual Funds. Performance history is no guarantee of future performance. It’s helpful to know how the fund has been doing but that does not mean it will perform the same in future. It may or it may not, depends on the market and the fund management team.

SGX Nifty Indicates Flat Opening; KNR Construction Receives Order Worth Rs 604 Crore

Distribution days: Two

Global stock markets: Dow 30,-1.3%; S&P500,-1.5%; Nasdaq,-1.5%; Nikkei, -0.1%; Hang Seng, -0.1%; Kospi, +0.1%

Yesterday, Nifty opened at a record high above 14,100 but witnessed profit booking and traded toward the day’s low of 13,953 in the initial two hours of the session. However, it posted a smart recovery of about 170 points off lows during the day and closed holding solid gains. Volume was higher than in the previous session. The broader market outperformed compared with the general market. Midcap closed 1.4% higher, while Smallcap was up 1.2% for the day.

On the sectoral front, barring Nifty Bank and Nifty Pvt Bank, all other sectoral indices closed in the green. Nifty Metal (+5.1%) extended its gain, followed by Nifty IT, which was up 2.7%. Nifty Media, Auto, PSU Bank, and Pharma were up in the range of 1.0–1.6%.

With leadership broadening and indices above relevant intermediate-term moving averages, we will continue to look for leadership-quality growth names to form entry points. If a pullback/consolidation happens, it will be crucial for Nifty to hold its 21-DMA. It is advised to closely review the existing positions and book profits in stocks that are extended from their moving averages and showing technical weakness. Also, tracking distribution days is crucial as rising in distribution days can halt the uptrend.

Key News

Sun Pharm.Industries initiated Phase-2 trials of the oral drug SCD-044 in patients with moderate to severe plaque psoriasis.

Nbcc (India) was awarded a work order worth Rs 351 crore to Gaursons Hi-Tech.

Knr Constructions received an order worth Rs 603.63 crore in Chennai.

O’Neil Market Condition Report

For the 24 emerging markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 84%; Rally Attempt, 4%; Uptrend Under Pressure, 12%; Downtrend, 0%.

For the 24 developed markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 66%; Rally Attempt, 0%; Uptrend Under Pressure, 34%; Downtrend, 0%.

Visit Marketsmith India to Read More About Indian Share Market News, Daily Market Tips, Model Portfolio etc.

How learning Microsoft PowerPoint online can help you win new business

Develop different skills useful for your new business and make your life much more straightforward and secure.

When you are into a business or looking for a company where everything is being done online, you need to have some special skills. These skills can include things like financial modeling, financial analysis, data analysis, valuation, knowledge of excel, and even PowerPoint. These are some of the primary skills that can turn your career and life upside-down in a moment.

If you are working in a company where data valuation is needed, you do not need to hire someone else. When you can do the thing yourself, you won’t need to trust someone else, and thus you can easily get many things under your control.

Such skills are not developed on their own. These are needed to be learned, and when you have such a busy life, people lose hope of learning such skills. But now, with the help of online platforms, you can easily develop skills and participate in online Microsoft PowerPoint courses and many more courses. You will be able to get the advantage of these skills in your current working environment but can get much better post based on such skills.

Courses you can learn.

Among many courses that are provided online to the general public, you can choose the courses best suitable for you. Some of them are as follows.

Financial modeling: With the knowledge of this course, you will be able to make a record of financial stuff like where the investment can be made, where there have been financial losses, and thus hop into best judgment.
Data Analysis: Even if you come across any data, you won’t need to rely on someone else to explain the matter to you. You will understand everything on your own and thus take decisive decisions and perform better in your company.
Knowledge of Excel: Excel is one of the most important parts for a person who is in the business field. You need to make sheets and set individual records. You can tally up your expenditure and profits and losses through the knowledge of excel. Thus it becomes quite useful if you know of this particular course.
Knowledge of PowerPoint: PowerPoint is needed to make presentations. The best way to explain your idea to your boss and client is to create a PowerPoint presentation. Doing so becomes easy when you know of the same course you can get from the online Microsoft PowerPoint course provided to everyone on many websites.
After knowing the uses of these services, a question pops up in everyone’s mind that from where should one collect such knowledge? Which is the best online platform from where you can learn these courses at an affordable price?

Skillfin learning is one such website providing these types of online courses to the general public at an affordable price and the guarantee of 30 days money back if the expectations are not met. So go on and develop these skills and win new business with them.

Summary: Develop different skills useful for your new business and make your life much more straight forward and secure. When you are into a business or looking for a company where everything is being done online, you need to have some special skills. These skills can include things like Financial modeling, financial analysis, data analysis, valuation, knowledge of excel, and even PowerPoint. These are some of the primary skills that can turn your career and life upside-down in a moment.

Will the New Pension Formula Impact Your Income in Retirement?

Pension plans must use a new method for the calculation of the commuted values as of 1 December 2020.

Plan members who transfer the commuted value (CV) of their Defined Benefit (DB) plan could soon receive reduced payments thanks to an updated formula that will come into effect on 1 December.

Some DB plan members, particularly those approaching the plan’s normal retirement date, may experience a relatively small decrease in their CV. However, those who leave or retire around the age of 40, and do not have many years of service, may see their CV payment reduced by 5% or more, depending on the characteristics of the plan. In a February announcement published by Eckler SA, an actuarial consulting firm, it was estimated that changes to the retirement date assumption in the revised December formula could reduce CV payments for people aged 45 in a DB plan with a normal retirement age of 65 by 4% to 7%.

The new formula was developed by the Actuarial Standards Board of the Canadian Institute of Actuaries after a multi-year review process and is expected to enter into force on 1 August 2020. In April, at the beginning of the closures due to COVID-19, the institute announced that it would postpone the deadline to 1 December 2020. Some plans were permitted to adopt the revised standard early.

The new formula uses a revised assumption for the start of the retirement date and a market-based interest rate calculation that reflects not only Canadian government bond yields but also information on the performance of provincial and corporate bond indices. The impact of these two key revisions on the lives of plan participants depends on the age of the plan participant, the bond indices used to calculate the difference, the economic conditions at the time of calculation, and the terms of the plan, as indicated in the Eckler communication.

For plans without early retirement benefits, the change may only have a minor impact on CVs, but CVs will generally be lower under the new rules for early retirement planning. The more generous the benefits, the greater the reduction.

Members of the DB plan who terminate their employment often have the opportunity to remain in the DB plan and regularly receive pension payments upon retirement, or to transfer the CV from the plan and use it to purchase an annuity, or to take it as a lump sum – where part or all of the amount can be transferred to a locked-in retirement account.

Plan members who have recently requested a quote for the CV of their earned pension, but have chosen not to commute their pension until the new year, may find that their CV has decreased due to changes in interest rates and assumptions.

The decision to take a CV from a DB plan is complicated and very personal. It can be one of the most important financial decisions you make when buying a house. When interest rates are low, as they are now, CVs are high, making the decision to transfer a CV a potentially interesting option. However, the amounts withdrawn must be properly invested to create future retirement income. This is unlikely to be achieved by using GICs or other “guaranteed interest” investments, as they are currently paying less than the rate of inflation.

It would be perfectly normal for your risk tolerance to be lower in retirement than it was at the beginning of your career. A more conservative investment mix will produce a lower rate of return over time, but if you are sufficiently diversified, you should expect a return that regularly exceeds inflation.

In addition, usually only part of the commuted value can be transferred to a locked-in retirement account, while the rest may be subject to immediate taxation. If you do not have sufficient RRSP room to offset part, or most, of this excess, you may have to pay some income tax due to this choice.

Opting for a CV may be suitable for plan members who have at least a “balanced” tolerance of investment risks, who do not have a spouse, who have a shorter life expectancy, who receive a relatively low pension, or who have another DB pension income – whether their own or their spouse’s pension. Taking the commuted value of another pension may allow a couple to diversify between pension income and locked-in RRSP investments.

5 Golden rules for successful trading

Many sites would offer you ways and tips to plan the trade; different tips that promise you quick profits, and so on.

Such searches on the internet can be a little overwhelming for new traders and most probably distract them from honest advice.

Each of the trading rules that we will discuss below is essential to facilitate sound trade. When these rules are implemented together, the impact created could not be estimated.

So, here are the golden rules for successful trading

Always implement a trading plan
A trading plan is a mix of strategies and rules defining details like exit and entry points of trade, money management practices for various trades in the portfolio.

At the same time, it is crucial to have your ideas or plans tested before you go live with them. With technological advances or sheer hike, it has become very easy to test your trading plans before you put money in.

The practice of backtesting can do wonders. It allows you to test your idea or plan backed up by past data and history to see if it is feasible or not. When the plan is designed and backtested, the results are optimistic, and the trader can move ahead with it.

Here, one thing to always remember is to go with a plan you have mapped out. But there are times when trading plans might not work; it is important to get away from it and start again.

Make the best use of technological advances.
Trading is one of the most combative and zealous businesses. Therefore, all traders all around the world tend to take the benefits offered by ever-advancing technology.

Technologies like backtesting help in reducing risks by testing the trading plan. Various advanced charting platforms provide a wide range of methods to analyse trade and trends.

You can get updates regarding the market and your trade wherever you are through tablets and mobile phone applications offered by different brokers. All such technologies can prove to be a great advantage to traders. Using new and updated technology can be fun as well as rewarding for the trader or investor.

Act as a student and focus on learning
Think of entering the trade market as you are continuing your education even further. Traders need to learn from their trade and others’ trade and market each and every day. No matter how much time a trader is trading.

Remember, understanding the tactics of market and trade is an ongoing trip that never ends. If you think you have learned everything about the market and have become an expert, you are probably delusional.

Of course, with time, you will polish your trade practices, but there will always be something to learn every day.

Trading markets are pretty dynamic in nature. It is better if traders precisely research the past and current scenarios before jumping in with investments.

Do not base your trade on emotions.
Never get emotionally carried away whilst trading. Trading should be done being mentally sound, looking at risks, pros, and cons of each trade or instrument. Letting emotions get in the way of toned decision making can blur the lines of a successful trade.

Do not get tempted by meaningless offers that promise zero risks and great returns. Risks in trading are inevitable; one can only reduce and mitigate them.

So, such schemes are mostly hoaxed as scams are all around the internet. The inspiration behind your trading actions should be facts and precise methodology, and not emotions or greed.

Develop your trade based on research and facts. Traders who take their time and patiently analyse and learn about the market have a greater chance of being successful in the market than those who skip such crucial steps.

Know when to stop
When your trading plan is not working, think nothing but stop trading. An ineffective trading plan will reap you no good results, but instead, extend your losses.

The cause of an ineffective trading plan can be an increase or decrease in market volatility, economic changes, or anything else.

At the same time, while getting into any trade, never forget using a stop loss. Stop loss is the maximum amount of risk a trader is willing to take on a particular trade. When the limit comes, the trade must pull out.

Conclusion

The five trading rules mentioned above will help you go about trading efficiently. It is crucial to understand the working of these trading rules and how helpful implementing them in the trade can be.

Taking your time and thoroughly researching the market, mitigating risks through practices like stop loss or backtesting are the core concepts behind these trading rules.

If you are a fresh trader and are inquiring about a regulated broker to facilitate trade, we recommend T1 Markets. T1 Markets is an authorised online broker dealing with various trade instruments like stocks, forex, indices, commodities, ETFs, and more.