Podcast Summary
Leverage LinkedIn for Hiring and Discover Quality Sleep Solutions: LinkedIn is a top platform for hiring professionals and discovering individualized sleep solutions with Sleep Number smart beds.
LinkedIn is an invaluable resource for small businesses looking to hire professionals. It's where you can find candidates who aren't actively searching for new jobs but might be open to the right opportunity. In fact, over 70% of LinkedIn users don't visit other leading job sites. So, if you're serious about hiring, start by posting your free job listing on LinkedIn.com/people. Another important topic discussed was the transition from commission-based to fee-based financial advice. While some fund managers have already made the switch, there's evidence that some financial advisers are finding ways to continue earning commissions, despite the upcoming ban. Regulation can only do so much, and it's up to consumers to be vigilant and ensure they're getting sound advice based on their needs, not just the advisers' financial incentives. Lastly, the importance of quality sleep was highlighted with the Sleep Number smart bed. With the ability to individualize comfort and temperature, these beds offer a solution for couples with different sleep preferences. And with JD Power ranking Sleep Number number 1 in customer satisfaction for limited edition smart beds, it's worth considering for those looking to improve their sleep.
Transition to fee-based financial advice not as simple as assumed: Some advisers continue to rely on commissions, potential for unnecessary changes, and transition may take until late 2011 or 2012.
The shift from commission-based to fee-based financial advice may not be as straightforward as expected. While some financial advisers are moving towards fees, others continue to rely on commissions. This trend goes against the general assumption that all advisers would transition to a fee-based model or leave the industry. The fear is that advisers under pressure to demonstrate value for money might make unnecessary changes to clients' portfolios, leading to unnecessary costs. This could potentially create a situation similar to that in other professional services industries where professionals are criticized for excessive billing. It's crucial for private investors to ensure their advisers are billing correctly and that any commission being charged is reasonable. Despite the trend towards fees, the transition may not be complete until late 2011 or 2012.
Understanding the Differences Between Retail Bonds and Savings Accounts: John Lewis and Lloyds TSB retail bonds offer attractive fixed rates but are not the same as savings accounts. They involve lending money to the companies with no deposit protection, and investors should carefully consider the risks before investing.
While John Lewis and Lloyds TSB are offering attractive fixed rates on their retail bonds, investors should be aware that these bonds are not the same as savings accounts. These corporate bonds involve lending money to the companies, with the expectation that they will pay back both the interest and the capital at the end of the term. Unlike savings accounts, these investments do not come with deposit protection. While the firms may appear strong and secure, there is no guarantee they will be able to meet their obligations. Investors should carefully consider the risks involved before investing in these bonds, and not assume they are the same as savings accounts just because they come from trusted brands.
Comparing John Lewis Bond to Corporate Bond Funds: While John Lewis bond offers attractive returns, corporate bond funds provide tax efficiency, risk diversification, and potentially higher yields. However, rising interest rates may decrease their appeal.
While the John Lewis bond may offer attractive returns in the form of both cash and vouchers, it may not be as tax-efficient or financially secure as investing in a collective corporate bond fund. Corporate bond funds offer yields between 4 to 6%, are easier to place in an Individual Savings Account (ISA) for tax efficiency, and spread the investment risk across multiple companies. However, as inflation and interest rates rise, fixed income investments like corporate bonds and funds may become less attractive due to the risk of interest rates outpacing the returns. The M&G Corporate Bond Fund and Investo Perpetual Corporate Bond Fund are examples of good quality investment-grade bond funds. Ultimately, the choice between a corporate bond fund and a bond like the John Lewis bond depends on an investor's risk tolerance, investment goals, and tax situation.
Considering Risks of John Lewis Bond and Fixed-Term Savings: John Lewis bond has no secondary market, making it hard to withdraw funds early. European mortgage rates rising, making UK buyers consider fixed rates.
Investing in the John Lewis bond or other fixed-term savings accounts comes with risks, particularly if you need access to your money before the end of the term. Unlike the UK mortgage market, where rates can change suddenly, the European mortgage market may offer more notice before rate increases for fixed-rate loans. However, mortgage rates in Europe have been rising faster than expected, making it a good time for UK buyers to secure a cheap fixed rate while they can. In the context of the discussion, it was mentioned that the John Lewis bond lacks a ready-made secondary market, making it difficult to withdraw your money if needed. Therefore, it's essential to consider the risks before making a 5-year commitment to such an investment. For more information on the pros and cons of investing in individual corporate bonds versus bond funds or savings accounts, check out the feature in this weekend's FT Money section or on their website.
Mortgage Rates Rise Faster in Europe, Especially in Countries in Turmoil: Stay informed about mortgage rates and market changes in Europe to secure the best deals, with longest fixes lasting up to 20 years.
The mortgage market in Europe is experiencing a faster rise in interest rates compared to the UK, particularly in countries undergoing economic turmoil like Portugal. Mortgage rates vary significantly from country to country, with Portugal having much higher rates around 7%, while France still offers relatively cheap rates at around 4%. Not all lenders and rates apply to all countries, so it's essential to stay informed about changes in the market. International mortgage brokers like International Private Finance now offer rate update services to help buyers secure rates before they increase. The longest mortgage fixes in Europe tend to be for 20 years, making it a popular choice for those looking to secure long-term financing. Overall, it's crucial for those considering buying a property overseas to stay informed about mortgage rates and market changes to secure the best deals.
Mortgage Rates and Loan-to-Value Ratios Vary in Europe: Explore France and Spain for lower mortgage rates and shorter terms, but be mindful of lower loan-to-value ratios. Rates and terms are subject to change, so act quickly if interested.
If you're considering buying property in Europe, the mortgage rates and loan-to-value ratios can vary significantly from country to country. For instance, in France, you can secure a 20-year fix at a lower rate than what's currently available in the UK market, but with a lower loan-to-value ratio. At the moment, the best 5-year fix in the UK is around 4.59%, but it's only available up to 65% loan-to-value. In contrast, in Spain, you can get a 20-year fix at 5.75%, but only up to 60% loan-to-value. Therefore, it might be worth considering a move to countries like France or Spain if you're looking for cheaper mortgage rates. Keep in mind that these rates and terms are subject to change, so it's essential to act quickly if you're interested. For more detailed information on the best mortgage rates for property purchases in various European countries, be sure to check out Tanya's article in the money section of this weekend's FT.com. Remember, your finances are important, so don't hesitate to email us with any questions you might have. Stay tuned for another financial lowdown next week. In the meantime, happy shopping with Quince for your travel essentials, and don't forget to celebrate your moms this Mother's Day with 1-800-Flowers.
