Steps on How to Start SIP Investment

Steps on How to Start SIP Investment

Systematic Investment Plan (SIP) is an instrument that allows you to invest a fixed sum of money in an investment fund, at regular intervals; instead of a lump-sum investment. It helps you invest in a very disciplined manner.

With disciplined and systematic investments, your can potentially build wealth over the long-term. This is made possible by the power of compounding and Rupee-cost averaging. An SIP also allows a great degree of flexibility in terms of choosing a payment style. For instance, you can pay on a month, quarterly ,or annual basis.

In case you wish to buy an SIP, here’s a brief guide on how to start an SIP investment. To find out more, read on.

Assess Your Risk-Appetite

An SIP can help you meet your financial goals and aims at creating wealth in the longer run. However, you need to consider your risk appetite when choosing the investment amount. While investing in SIP, you should remember that it invests your funds in mutual funds which are subject to market risk. Hence, you should assess your risk-appetite and invest accordingly.

Choose a Mutual Fund to Invest

The SEBI guidelines’ classification of different funds according to their respective risk levels will help zero down on a compatible risk bracket. You can compare different funds by looking at their performance in the past few years. This will help you narrow down on a suitable fund. If you are wise with your choice you can get benefits on tax. For instance, an ELSS is a great tax saving fund. However, find out what an ELSS scheme is before you invest.

  • Having decided on a fund, you will have to fill up an application.
  • Submit a check of your monthly SIP amount or Fill up the ECS form for online mode.
  • Provide a cancelled check.
  • Provide your residential proof.
  • Provide PAN copy.
  • Provide a KYC form.

Select a Date for SIP

Next you will have to choose a date for SIP auto-debits, towards the monthly installments from your bank account. Choose this date wisely, considering your salary date, and other payment obligations. You will also need to consider the payment mode. The amount can be auto-debited from your account using net banking, NEFT/RTGS, or OTM (one-time mandate).

Decide Your SIP Duration

After that, you decide the duration for which you desire to keep investing. An SIP calculator can help you decide on a duration, taking into account your financial goals, and annual rate of return. After you decide on the duration, and complete all details online submit it. You will receive an acknowledgement through email and SMS. Usually, the SIP is activated within a few days, after proper verification of KYC status.

In order to get most out of your investment, you should stay invested till the end.

Moreover, SIP is a great financial instrument to plan for your financial future. It is also one of the most affordable high-performance investments, allowing you to begin with a mere Rs.100. Apart from convenience and flexibility, it offers other benefits such as avoiding the need to time the market, or keeping risk lower with Rupee cost-averaging.

After you learn about how to start a SIP investment, make sure to understand all the terms and conditions, before you take a decision.

Are Payday Loans Guaranteed Even With Bad Credit Score

Are Payday Loans Guaranteed Even With Bad Credit Score

If you have a bad credit score, getting approved for a loan can be difficult, but this is not the case with payday loans. Learn more about whether payday loans online are guaranteed for those with a bad credit score.

If you are looking to apply for a payday loan and you’re wondering whether it is a guarantee for those with bad credit or not, it is not a guarantee but has a high approvals rate. While most lenders do not check the credit score, others still do, so the answer will vary depending on the lender you choose. To qualify for a payday loan, there are some minor criteria that you need to know. But, unlike other financial institutions, a bad credit score is not usually the issue. The most important thing that you need to qualify for a payday loan is a job where you have been working for at least three months. Let’s further look into qualifying for Payday Loans Online.

Can You Qualify For A Payday Loan With A Bad Credit? 

To answer the issue of whether payday loans are guaranteed even with a bad credit score, the simplest answer would be “No,” as it depends on the lenders. Although some lenders will not check the credit score, some will, so you should look for a lender that does not conduct a credit score check if you need cash urgently. If you end up with a lender that conducts a credit check and you are not borrowing from that lender, this check will be reflected in your credit file. So, avoid lenders that conduct a credit check as much as possible.

How Can You Qualify For A Payday Loan? 

Applying for a payday loan is easy, especially if you are doing it online. However, when it comes to eligibility, there are certain aspects that you need to clear in order to qualify. First off, you should be at least eighteen years or older. Furthermore, you should be a citizen or a resident of the USA, have a valid ID or passport that proves your identity, be employed, and provide personal information such as full name, date of birth, address, and a valid phone number and email address. You may also need an active bank account and a good credit score according to the lender, although the last two are not a requirement for many lenders.

How Can You Qualify For A Payday Loan With A Bad Credit Score? 

While the qualification will depend on the information you provide and the lender, if you’re wondering how you can qualify for a payday loan with a bad credit score, your best bet would be to look for a lender that does not conduct a credit score check. Along with this, you should provide accurate data, information and then apply for the loan to just one lender at a time. Yes, there are many lenders out there, but the issue with applying to many lenders is that if you do not get approved, for every credit check, it will leave a mark on your credit.

To sum it all up, a payday loan is not a guarantee for those with a bad credit score, but it will vary depending on different lenders. So, if you are applying for Payday Loans Online with a bad credit score, make sure to choose a lender that does not conduct a credit score check. And as mentioned above, apply to just one lender to improve your approval rate.

Is SIMPLE IRA Or 401K Better for Your Small Business?

Is SIMPLE IRA Or 401K Better for Your Small Business?

In setting up a retirement plan for a company, business owners may go back and forth in deciding between a SIMPLE IRA (Savings Incentive Match Plan for Employees) and a 401k plan. Both have their benefits and potential risks. So, which is the better option for your business?

What Are The Differences Between a SIMPLE IRA And a 401k Plan?

According to plan provider Ubiquity, while there are similarities in each plan structure, there are important key differences in contribution limit, number of employees, tax considerations, employer contribution, loan access, and setup/maintenance that should be considered by every employer when he or she is considering implementing a retirement plan. Note that the following is not an exhaustive list of the differences between the two plans, but is intended to provide general guidance.

  • Contribution Limit. In a SIMPLE IRA plan, contributors under 50 years old have a limit of $13,500 for 2021. This is compared to a 401k contribution limit of $19,500 for 2021. For earners 50 years of age and older, the limits are $19,500 and $26,000 for a SIMPLE IRA and a 401k respectively.
  • Number of Employees. A SIMPLE IRA can only be used for businesses with 100 or fewer employees, while a 401k can be used for businesses of any size.
  • Tax Considerations. With a SIMPLE IRA, there is a two-year period where you cannot remove funds from the plan and roll them into a Roth IRA, lest you face a 25% penalty. Conversely, with a 401k plan, you have control over whether taxes are paid (the option is to pay taxes when funds are withdrawn in retirement or utilize Roth 401k. The choice between these two options will be largely dependent on the individual contributor.)
  • Employer Contribution. SIMPLE IRAs require employers to match or implement non-elective contributions for all employees. A 401k plan allows employers to decide whether they will match contributions or not.
  • Loan Access. The main difference as related to loan access is that with a SIMPLE IRA, contributors are unable to take a loan from retirement savings (unless they are ok with incurring a penalty), while 401k plans allow contributors to take loans if necessary.
  • Setup/Maintenance. SIMPLE IRAs are generally seen as less complicated and expensive in terms of setup and maintenance as compared to a 401k. This is due in part to the fact that the IRS imposes non-discrimination tests on many 401k plans, which can be costly and time consuming. SIMPLE IRAs do not have testing requirements.

Which Option Is Best for My Business?

 Every business will have its own unique needs when it comes to retirement plans. It’s important that business owners closely analyze their company setup to determine the number of employees, the business’s financial status, and how these factors may affect their final decision.

In general, a 401k plan will offer more flexibility and typically will result in greater value both for employers and employees. However, if you run a very small company, you may consider the “easier” option of a SIMPLE IRA. It is a good idea to discuss your individual business needs with a financial professional before making any decisions about a retirement plan.