Exploring Life Insurance beyond Family Security

The primary reason for individuals to get life insurance is financial security for their family. However, Richard Cayne of Meyer Asset Management Ltd Tokyo opines that the benefits of life insurance extend beyond financial security. A life insurance policy not only helps pay off daily expenses for your family, but can also help them avoid getting into legal or financial trouble later in life. Herein, we shall take a look at the various ways in which the cash received from a life insurance cover can come to the rescue of your loved ones.

Richard Cayne of Meyer Asset Management Ltd Tokyo says that since most individuals take personal loans during their lifetime, a life insurance cover helps their family pay off such debts in the event of their untimely demise. This way, in case the loan had been taken with respect to a property or a vehicle, the family can continue to retain the asset and pay off the remaining debt, even if they lose the main bread winner. Richard Cayne of Meyer Asset Management Ltd Tokyo mentions that besides daily expenses, taxes become a major hassle for families in the event of the demise of their main income producer. These taxes mostly pertain to an individual’s estate and can come to be an extra burden when income levels go down, which is why life insurance policies should be decided on only after taking such loans and taxes into account.

Another reason that investing in a life insurance policy makes more sense than leaving assets such as land or property for loved ones is liquidity and taxes. Richard Cayne of Meyer Asset Management Ltd Tokyo states that the amount released from a life insurance cover is tax-free, while the sale or transfer of most other assets entails a certain amount of taxes. This makes the money received from a life insurance policy all the more valuable, since it reaches the family on time, minus the hassle of having to pay taxes on the same. According to Richard Cayne of Meyer Asset Management Ltd Tokyo, a life insurance policy is quite beneficial to even those who are fortunate enough to live a full life. Since the amount released upon the completion of a policy is always more than what has been invested into it over a lifetime, Richard Cayne of Meyer Asset Management Ltd Tokyo says that it helps families create wealth, which can be an invaluable gift to loved ones in such competitive times.

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Richard Cayne Meyer of Asset Management Ltd Tokyo - Empowering Your Future with a Personal Financial Consultant

Most individuals in their twenties usually approach the subject of hiring a private financial consultant with much skepticism. The most usual argument being that they have ample time to plan out their finances as well as their future. However, Richard Cayne Meyer of Asset Management Ltd Tokyo strongly disagrees with the same and not without good reason. A practicing and experienced financial consultant himself, Richard Cayne Meyer of Asset Management Ltd Tokyo says that your twenties are exactly the right time to hire a consultant and plan your finances, since you do not have any added responsibilities of a family or children, which almost always slow down your investment capabilities as you grow older. Being single is the most opportune time to concentrate on one’s financial health and hiring a professional will most definitely equip you with an advantageous head-start.

Richard Cayne Meyer of Asset Management Ltd Tokyo says that even though you might have a good grip on your finances and be well-acquainted with your goals, the advice of a professional consultant will only help accelerate your growth. An experienced financial consultant will not only offer advice on which vehicles to park your money in with respect to your vision, but also bring in a strategic market perspective to the mix. According to Richard Cayne Meyer of Asset Management Ltd Tokyo, a financial consultant will offer you solutions based on a whole gamut of factors inclusive of your investment capacity, long term goals, risk appetite, economic trends and tax savings.

Furthermore, your personal financial consultant will not only advice you based upon the current market trends, but also go one step ahead to anticipate future prospects, so that you benefit in a most calculated and secure manner. Richard Cayne Meyer of Asset Management Ltd Tokyo says that the job of a personal financial consultant does not end once investments are made and the process is set in motion; rather it begins with the same. An experienced financial consultant like Richard Cayne Meyer of Asset Management Ltd Tokyo will always make sure to re-assess your investment plan every now and then in order to make sure that your assets are working the way they are supposed to. In case any asset stops showing promise of further growth, the consultant will go ahead and look for an alternate that offers you the same or better rate of return, so that all your financial goals are met in a timely manner. Richard Cayne Meyer of Asset Management Ltd Tokyo also mentions that the services of a financial consultant are necessary as these individuals make sure to give your goals a reality check every now and then, and help you create wealth in a most resourceful, yet sound manner.

Richard Cayne Meyer Asset Management Ltd – Common Investments and Correlation in The Markets

According to Richard Cayne Meyer Asset Management Ltd, having a well balanced portfolio with investments which compliment each other is quite important. So many investors end up buying assets or investments that are highly correlated and end up performing about the same. Of course this can be good in a rising market but offers no downside protection should the markets experience a severe correction. This article discusses some of the most common types of investments and how they may be correlated with each other.

Stocks
Preferred stockholders have a greater claim to a company’s assets and earnings. This is true during the good times when the company has excess cash and decides to distribute money in the form of dividends to its investors. In these instances when distributions are made, preferred stockholders must be paid before common stockholders. However, this claim is most important during times of insolvency when common stockholders are last in line for the company’s assets. This means that when the company must liquidate and pay all creditors and bondholders, common stockholders will not receive any money until after the preferred shareholders are paid out. That said most people invest in common stock.

Shares & Debentures
Richard Cayne Meyer Asset Management Ltd in Thailand says the differences are that; SHARES- A Share holder is the real owner of the company and does not have not fixed dividend rate and no maturity period, shares are not redeemable but can be sold. Shares are more volatile and imply a higher degree of risk. A share holder can have high return and share holders have rights on residual income.
A debenture holder is the creditor of a company, they have fixed rate of interest and they have a maturity period but they don’t have any right to vote. Debentures are redeemed, they are not volatile and they have a lower risk and a lower return. Unfortunately over the past few years we have seen a higher correlation of performance tied to both stocks and bonds.

Mutual funds
Mutual funds are also known as open-end-company. These are one of the most popular kinds of investments and provide the investors the opportunity to invest in securities. Though mutual funds involve risks but they also offer two things, that is, the ready diversification and opportunity for the fund manager to outperform the market.

Real Estate Investment
In the opinion of Richard Cayne, Real Estate Investment Trusts are corporations that sell shares for investments in real estate which can be in either residential, commercial or both. This type of REIT (Real Estate Investments Trust involves the buying, management, ownership, sale or rental of real estate properties and mortgages. Again as we had seen during the financial collapse property having taken a nosedive and the equity and bond market went down along with it.

Commodities
According to Richard Cayne Meyer International in Bangkok Thailand a commodity is a product, which is of uniform quality and traded across various markets. There are generally two types of commodities, “hard commodities” and “soft commodities”. Hard commodities include crude oil, iron ore, gold, and silver and have a long shelf life. Agricultural products such as soybean, rice or wheat, are considered ‘soft commodities’ since they have a limited shelf life. These commodities have to be similar and interchangeable or ‘fungible’. Gold as an example had provided an uncorrelated performance throughout the financial crisis up until 2012 and had been a good compliment to any portfolio as it had outperformed most other investments. Now in 2012 Gold seems to be gaining popularity as a mainstream investment pushing up demand for it and as such we are seeing a higher degree of correlation with the equity markets than we used to.

Richard Cayne having lived in Tokyo Japan for over 15 years and at Meyer Asset Management Ltd has ties with over 200 global financial services firms. Richard is Managing Director of Meyer International Ltd based in Bangkok Thailand and is the Asian based marketing arm for the Meyer Group which is owned by Asia Wealth Group Holdings Ltd listed in London UK

Article source:- http://richardcaynes.wordpress.com/2012/09/01/richard-cayne-meyer-asset-management-ltd-common-investments-and-correlation-in-the-markets/

Significance of Asset Allocation by Richard Cayne Meyer International Ltd

In the opinion of Richard Cayne at Meyer International Ltd in Bangkok Thailand, the right asset allocation is the key to a portfolio which outperforms. Asset allocation lets you spread your investment into different asset classes and therefore helps in reducing the risk of the portfolio. Asset allocation is not only about choosing investments in different asset classes but also those that are in different geographical regions.

In fact, the concept of asset allocation emerged with the fact that every investment has a different kind of cycle and associated risks and therefore, investing in different securities will not only reduce the risk but will also increase the opportunities of profit for an investor.

According to Richard Cayne Meyer Asset Management Ltd in Thailand, deciding an asset allocation strategy is a very crucial and important decision for every investor. The right kind of asset allocation strategy will help you balance reduce the risks in your portfolio. During asset allocation, the investor needs to allocate his assets into different asset classes. Some of the most common but important asset classes include stocks, bonds and alternative investments such as hedge funds. Each asset class contains its own advantages. For example, stocks are often considered as the investments that can bring maximum profit to the investors but at the same time has highest volatility and downside risk as well.

An experienced investor knows that information is key to being able to make calculated decisions and financial consultancy firms can be a wealth of information to them. For less experienced investors a financial advisor can help the individual in choosing the right kind of allocation for his assets as well as helping to define the investor’s goals. Contacting a financial consultant is advantageous because he takes complete care of the investor’s portfolio by checking the investor’s risk tolerance level, investment capacity and by choosing the appropriate asset classes for an investor. An experienced and accomplished financial advisor very well understands that every investor expects profit within a certain time frame and so a proper investment strategy should be planned along with an asset allocation strategy. One of the most important tasks for financial advisors is that they help the investors in building a balance between the involved risks and expected profit returns.

Richard Cayne Meyer International in Thailand says that the situation and capacity of every individual investor is different from others and therefore, a different financial investment strategy having its own defined asset allocation strategy may be need.  Markets and asset classes do not move in tandem, what’s hot today may be cold tomorrow. Spreading your investment dollars among different types of asset classes and markets; stocks and bonds, domestic and foreign markets lets you position yourself to seize opportunities as the performance cycle shifts from one market or asset class to another.
Richard Cayne having lived in Tokyo Japan for over 15 years and at Meyer Asset Management Ltd has ties with over 200 global financial services firms. Richard is Managing Director of Meyer International Ltd based in Bangkok Thailand and is the Asian based marketing arm for the Meyer Group which is owned by Asia Wealth Group Holdings Ltd listed in London UK.

Meyer International Richard Cayne – Life Insurance Simplified

Richard Cayne Meyer Asset Management Ltd says; In its simplest form, life insurance is financial leverage.  A small pool of money creates a large pool of money, guaranteed and risks free, for the purpose of funding an identified goal or objective.  Term life insurance is what most people think of when they think of life insurance.  Term life insurance provides a guarantee of a pool of money for a specific number of years, at a guaranteed (never to increase) annual cost, as long as the premiums are paid; usually for 10, 15, 20 or 30 years. The expectation is that at the end of the term, the protection will no longer be necessary, and the policy may be allowed to lapse (you may lapse a term policy at any time by ceasing to pay for it).

Replacement of Income

We use term insurance frequently to provide for replacement of income to a family who is dependent on a “breadwinner’s” income for living expenses, college funding, retirement funding etc.  If we plan correctly, we will accumulate assets during the earning years such that at retirement, the client will be able to produce his or her own income from assets when there is no longer income from employment.  Term life insurance guarantees that the “gap” between today and retirement will be filled if income ceases due to death of the income earner prior to fulfillment of planning.  The downside says Richard Cayne at Meyer International Ltd based in Bangkok Thailand is that Term life insurance is inexpensive, has no internal cash value, and may be exchanged for other types of life insurance which do.

Planning for Certainties in Life

The other most often used type of life insurance is Universal Life.  Universal Life is permanent death benefit life insurance. Universal Life has myriad applications in financial planning, as the death benefit cannot be outlived. Using this financial leverage usually makes fiscal sense when there is a need to create permanent liquidity. Many of my clients use Universal Life to create an estate or to protect an estate.  In case you don’t think you have an estate; you do.  Your estate is all of your “things”, including your financial assets, property, hard assets like art, sculpture and collectibles, your furniture, cars etc… All of it.  Death eventually produces financial liability to the beneficiaries, one way or the other.  Even small estates have expenses, and providing for the extinguishing of these expenses helps to ensure order and facilitate the completion of your plans and aspirations for your beneficiaries.

Richard Cayne Meyer Asset management Ltd having lived in Tokyo Japan for over 15 years can certainly say that Japanese  like other nationalities with larger estates can be devastated by taxes and expenses if advance planning is not good, and I don’t know a single case where the client found it preferable to force the sale of estate assets to pay taxes and expenses rather than have the expenses paid from the proceeds of a life insurance policy which bought those dollars at a deep discount; often a fraction on the dollar. I’m safe in saying that everybody understands that they will have to pay for these inevitable expenses with discounted dollars as opposed to paying for them dollar for dollar.  Some clients want to leave a financial legacy to children, grandchildren, or a charity.  Universal Life allows them to leave a guaranteed, tax free financial legacy which was secured at a deep discount.  Richard Cayne having consulted on many larger Japanese estates says Japanese like other nationalities particularly Asian ones do not like talking about death although inevitable but planning for this earlier rather than later will ensure that your wealth can be passed on in the most cost efficient manner to those you care about.

Richard Cayne is Managing Director of the Meyer Group of companies and based in Bangkok Thailand at Meyer International Ltd.  The Meyer Group has ties with over 200 global financial institutions and is part of Asia Wealth Group Holdings a UK Listed company.

Article Source: - http://richardcaynes.wordpress.com/2012/09/01/meyer-international-richard-cayne-life-insurance-simplified/

Financial Freedom - A Happier Life Richard Cayne Meyer International Ltd

It is no secret that saving money is essential for a happy and prosperous life. In such a catastrophic and vulnerable global economy where anything can happen anytime and the prices of basic needs are rocketing high every day, all of us need to save some amount of money as per our ability, suggests Richard Cayne at Meyer International Ltd in Bangkok Thailand. Saving money is a store of value for the times when we need to exchange that value for other goods or services.  We must ensure that we are getting the best store of value in our savings or investments by looking at how they will grow our value in line with the global growth and inflation trends and any extra value creation over and above this is the real return.

Reduces Stress and Live a Happier Life

According to Richard Cayne Meyer Asset Management Ltd in Thailand, most of our stress problems arise from financial worries. Therefore, one way if we wish to reduce our stress, is that we ought to save money whenever possible.  Knowing that you are financially secure or at least have a plan and a path to take so that you will be one day in a financially secure state can bring great peace of mind and comfort to individuals.  According to statistics over 50% of people anxiety and worries derive from financial insecurity in one form or another.  Therefore at the very least create a plan to word towards being financially secure.

Richard Cayne Meyer Asset Management Ltd and having lived in Tokyo Japan for over fifteen years can say that Japanese who are thought to be amongst the most conservative and pragmatic people are not that conservative when it comes to their own financial security in the sense that most do not have a proper financial plan nor do they know how they will be financially secure one day. Most Japanese still believe their company or their government pension scheme will be a backstop for them and take care of them.  However Richard Cayne at Meyer makes it a point to explain how company lifetime employments has changed and is no longer the case as is the financial stability of the Japanese pension system.  Richard advocates that if Japanese want to truly be conservative and plan for their own financial security in a responsible way they would be advised to get planning sooner.  Japanese aren’t the only ones who don’t plan as well as they should though and we should all make it our business to be responsible to ourselves and our families to ensure we are on the right path to financial security so we can all rest easy.

According to Richard Cayne Meyer International in Bangkok, we can all lead healthier and happier lives by doing forward planning and putting a plan of action in place of how we intend to be financially secure or to grow and protect our store of value.  We should share this plan with our family members so that they too can take comfort in knowing how the family can send little Johnny and siblings through schooling, buy that house they have always wanted or plan for their retirement or any other important life events.

With the price of commodities and good seeming to continually escalate its is ever important to keep pace with this inflation rate which arguably is approximately 3-4% per year.  So every year your portfolio earns 1% means that the real earning or store of value in your portfolio had just eroded by 2-3%.  This is an unsettling feeling and applies to everyone both to those who are building their financial security and those who are there many times over.  Nobody is immune to this and in fact those with vast sums of money gives them even greater stress as they don’t want to see their billions erode to a store of value in the millions.

Wealthy individuals and families do understand the need to plan to protect and preserve their wealth and therefore even if your goals may differ you should be planning too.  If you have a plan of action to preserve and grow your wealth you will have one less worry in life. So get planning and sleep well.Richard Cayne is Managing Director of the Meyer Group of companies.  He is based in Bangkok Thailand and has been involved in financial services for over 17 years in Asia. The Meyer Group is wholly owned by Asia Wealth Group Holdings Ltd a London, UK listed company.

Article Source: http://richardcaynes.wordpress.com/2012/08/28/financial-freedom-a-happier-life-richard-cayne-meyer-international-ltd/

Richard Cayne Meyer International on Investment Principles

An investor can put his money into different types of investments including buying a bond, stock, fund, deposit certificate, real estate or various other financial products that is available for investment. Investing is the procedure in which the investor allocates money in form of purchasing any of the financial products with the expectation of gaining a return in form of financial profit after a certain time. Richard Cayne believes that every individual may benefit by making some investments at the right time and in the right manner.

Tie Your Investments to Your Time Horizon

In the opinion of Richard Cayne Meyer International in Bangkok, investment is one of the best uses of your earned after tax income. Particularly when time is on your side and you can invest over a long time horizon without having to worry about day to day or even year to year fluctuations in the values of the underlying assets. All of us save money so that we can use it at the right time and this ties directly into financial planning where one should try and identify the time durations they may be able to save or invest over.  By doing this you can better determine which financial products or roads to take on your path to financial security.  Saving money in the bank at near zero interest rate is a very slow road to take which will never get your money growing fast enough for you.  That said if you need certain money for a short term goal say six months away then the bank account would be appropriate.  If the goal is 10 years away then you potentially could have received higher gain in other investments and that would be your opportunity loss.

Regular Saving or Dollar Cost Averaging

As markets fluctuate but over time trend upwards a great way to take advantage of this is through regular investment or what’s called Dollar Cost Averaging.  Investing periodically such as every month or even every year if your time horizon is long enough allows one to buy more of the asset when the asset price drops and overall smooth out the volatility in your portfolio by buying in the good times and most importantly in the bad time too.  Richard Cayne having lived in Tokyo Japan as Investment advisor and at Meyer Asset Management Ltd Tokyo had helped thousands of Japanese plan their future and dollar cost averaging is always one of the tools that he highly recommends.  Now Richard Cayne in Bangkok Thailand consults many leading investment companies on how to structure such investment plans to meet the needs of Japanese living abroad as well as those in Japan.

Diversify For a Balanced Portfolio

For some investing into one or two areas may seem like a good idea but if those two investments take a drop then having some other non correlated investments in their portfolio could have balanced out or reduced the drop to their overall portfolio.  Though the same can be said on the upside two that the other investments may not perform as well.  For most people however who look to grow their portfolios with a lower level of volatility and potentially with higher return should look to have a balanced portfolio of investments that will compliment each other.  For example instead of having all ones money in US Equities having some in Chinese Equities would have dramatically increased the performance of their portfolio over the years.  Richard Cayne Meyer Asset Management Ltd’s Asian based servicing arm Meyer International Ltd in Bangkok Thailand has been servicing its clients and strongly advocates a balanced portfolio with investments that compliment each other.

Take Control of Your Portfolio Today

Instead of simply saving in the bank, bonds and dabbling in investments consult a professional who can help guide you through all the benefits of investments and which ones are suitable for you.  Employ the above techniques and you will be taking a very good step forward towards your financial security. Richard Cayne is current Managing Director of Meyer International based in Bangkok Thailand and like Meyer Asset Management Ltd forms part of Asia Wealth Group Holdings a London UK listed company.

Article Source: http://richardcaynes.wordpress.com/2012/08/28/richard-cayne-meyer-international-on-investment-principles/