Translation Industry and the Evolving Global Marketing Scenario

Have a look at some interesting figures that the recent past has doled out. An assessment from research firm Common Sense Advisory has observed that 63 percent of global brands have reached more customers lately through an increase in the number of languages on their websites.

Localization has turned up as the 4th fastest-growing industry in the United States, according to the Centre for Next Generation Localisation.

If we look at what the US Census Bureau has gathered – a minimum of 350 languages are spoken in US homes. This is just a hint of the influx of a multi-lingual impact that other regions in the world have been embracing.

How can a brand not employ a translator for English to Spanish when targeting a Spanish customer who is looking for a product in the SEO list? Wouldn’t this user walk right past the brand if it doesn’t appear in a multilingual format across mobile devices, websites, and SEO lists?

Why does a brand tap services for translation from French to English? To make sure that a potential user doesn’t dissolve in the air just because the branding content was not served in a more comfortable language? Yet, today, despite these multi-lingual winds, about 53.6 percent of web content stays in English.

Brands have to adapt to this new multi-lingual, truly global world. And some of the smart ones are very well adapting it already.

The rise in the number of LSPs (Language Service Providers) – as many as 18,000 firms worldwide, as per Common Sense Advisory – is indication enough.

These language translation services can either offer specific segment or service like translation, localization or interpreting or they can bring a slew of accessory features as full-service providers. These LSPs would cover everything, right from translation, interpretation, web content, audio-video content features, publishing, and narration to machine translation, transcreation, localization, localization engineering, etc.

Powered with a rich pool of professionals, instead of just freelancers; and assisted with advanced technology and offerings that emerged from innovation; these LSPs are charting a new path of solutions that brands tap with outstanding results.

Overall, the translation industry has seen a clip of 6.46 percent growth recently and the journey is becoming more interesting every quarter.

Brands and businesses are coming up with new needs and potentially huge opportunities in many areas. Mobile devices, video content, subtitles, instruction manuals, app localization, software interfaces and many other upcoming areas are bursting with a new degree of demand and appetite.

It’s a time of ample opportunities but also the time for the right set of services to come and play. Shallow and sub-standard work can serve a small segment with no precise strategy but for a multitude of brands or marketers, what is needed is a full-spectrum offering equipped with deep expertise. The use of professional language translation services will make translation truly worth the effort.

It’s a global world and not just brands in the existing mediums of the web, branding collateral and advertising need the support of translation expertise but also brands that are nascent or about to incorporate extensions like apps, mobility or IoT in an unprecedented way.

Language translation service providers with the right resources, skills and experience can push the lever in the right direction. They can bridge the distance between businesses and new age customers, no matter where they are – on a website, on a road, in an aisle, on a mobile app, or simply, on Google looking for a rival brand.

Translation is not a quick fix but a deep and overarching strategy about branding for the new millennium. There is no way to cut corners or do it in a lazy way. Get it done from the best in the industry as this could define the future of your brand in overseas markets.

Financial Management for Sustainable Development in Mexico

For some, sustainable development is associated with the environment. For others, it means investing in projects or technology that will reap long-term benefits and will have no tangible effects on the present. This could not be further from the truth. As defined by the UK based Sustainable Development Commission, ‘sustainable development is development that meets the needs of the present, without compromising the ability of future generations to meet their own needs.

The business and Industry sector has traditionally been driven by a single factor, such as profit or efficiency, to the detriment of other vital components society relies on, such as local communities, the environment, science and technology, or welfare. The negative impact on society of this one-dimensional approach has been reflected through large-scale financial crises caused by irresponsible banking, or even strong changes in climate patterns. However, the growing influence of established and socially responsible corporations, such as HSBC, combined with the emergence of new players, such as Google or Facebook, has contributed to shift the rules of engagement and exert more pressure on their piers to adopt corporate practices that are more in line with sustainable development.

Good financial management is defined by the efficient and effective management of company funds in such a manner as to accomplish the objectives of the organization. This is achieved through planning, monitoring, organizing and controlling the monetary resources of an organization. If the objectives have as a focus the capacity to balance different, and often competing, needs, against an awareness of the environmental, social and economic limitations faced as a society, then the sustainable development component will be part of the driving force of the company, rather than being perceived as an additional cost, or labeled as ‘the price of doing business’. Ensuring you have the right financial management framework in place, whether it is in-house our outsourced, is the key to delivering successful sustainable development.

Over the years, Mexico has consistently contributed to sustainable development on a global level, and has been leading by example in Latin America. Mexico’s progress in policy planning and institution building over recent years has been remarkable, including the April 2012 adoption of the General Law on Climate Change (LGCC in Spanish), one of the world’s first climate laws-and the first in a developing country. Under this law, Mexico aims to reduce its emissions by 50% from 2000 levels by 2050. The NDC proposal is consistent with this objective. Mexico has significantly lowered its CO2 emissions without hampering its economic development, and actually seeing considerable growth. Various ministries now offer wide-ranging support to companies wishing to grow the economy whilst making a positive impact on the local community involved, and the inflow of foreign direct investment in these types of projects is a testament to the fact that Mexico is leading the field.

Through efficient financial management you can build solid foundations for your company, as well as providing bright opportunities for future generations.

International Business Setup – The New Talk of the Town

For ages people have wondered about owning a business in a country of their interest. This decision is backed by a lot of questions, like:

Which country to open a business in?

Which industry to choose?

What are the implications of setting up a business in these countries?

Is this the right thing to do?

what options do I have?

How soon can I open this?

Is it going to be profitable?

There are a lot of other questions which pop up in your head and you don’t have answers to them. The best way is to hire an agent or speak with a friend who knows. speaking with a friend will probably give you an insight and your friend might help you a bit with the process, but then again you need to consultant a professional to do the right thing. To follow the right procedure for opening your company/franchise etc.

The next question which comes out is how much will these agents charge you?

Is it going to be a fair price or are you going to get robbed?

Again you sit in a corner in a dilemma scratching your head thinking if this is going to over shoot your budget because these agents will grab all the opportunities to extract the that extra amount from your pocket.

This is the time when you need a real agent.

Ask these questions to your agent.

Why are you charging ‘X’ amount?

What all services are included in this?

What happens if the work is not done on time?

Will there be a compensation if there is a mistake that occurs on their part?

Do you need to run behind them or do they need to run behind you?

Well all these questions are simple but the last one though; differentiates them. An agent who makes you run behind them is not worth hanging on to. An agent who runs after you is a good bargain and this is where you will learn the customer service which is associated with the company or agents you will deal with.

Most of the times I have seen a lot of agents who will run around in the start just to grab your attention and they will also criticize the other agents saying; ” those agents do not know how to get the work done properly.” You like an innocent child believe this and follow them blindly and in-turn have the worst experience of your life.

PLEASE BE AWARE THAT IF YOUR AGENT IS NOT RUNNING BEHIND YOU THEN CHANGE THEM!

You want to suffer or be victorious in your endeavor. The choice is yours. Try to meet them, allow them to give you all their details in writing. Try to get them make a contract with you for the services being offered by them. Throw in some of your points in the deal. Discuss the price before you start with them. Do not pay them more than the contract amount. Also do not pay them less than the contract amount. At the end of the day these small things will make your experience worth your time and money.

I have come across many customers in work who complained about their agents not providing them with the full or correct information.

My business is to help people with setting up their businesses in UAE with ease and within the shortest possible time.

You might ask me for help if you want information on the cost of setting up a business or about various visa services or how you can get your documents attested at the best rate in the market.

Globalization Among Technology: How Is International Business Affected?

Have you ever considered where your phone or computer came from? Each individual piece of the device takes work in production and assembly. There are many products that are made domestically, but the vast number of companies transferring their products to be produced in other countries is growing every day due to the expected profit increases. This is an example of globalization. Specifically, companies like Apple can produce their phones, computers and tablets in foreign countries for significantly less money than it takes to produce them domestically in the United States. New technology in companies such as Apple has allowed globalization to result in a negative effect on global business through factors such as location, consumers and competing organizations. Yes, international factories can produce parts inexpensively, but at what cost to global business?

The consumer is the main reason that businesses become successful. Without the consumer, companies would be wasting precious resources and capital to produce products or services that are not purchased. People around the world have become so mesmerized with Apple products that they spend outrageous amounts of money on them. The cost of these products does not change despite the country it is being sold in. However, if the consumer cannot afford the product, they cannot buy the product. This is especially true for those living in the United States if businesses like Apple, among many others, are moving their jobs overseas. Similarly, in foreign countries, those businesses producing the technology are being paid pennies on the dollar. This results in poor wages for the workers and the inability to buy products, in turn. Thus, expanding the technology internationally through globalization has a negative effect on the company through the volume of purchases by consumers.

Many companies initially manufactured their products domestically. The desire for greater return on investment has lured more companies to consider or commit to expanding these tasks internationally through globalization. Potential new businesses in America are not looking into manufacturing or creating new products domestically because they fear they will not be able to compete with international rivals or companies utilizing outsourcing. In result, this may be too much expansion occurring too quickly for a new business, and it could backfire greatly on their profits. Lack of opportunity to produce domestically has also lowered the amount of jobs and taken funds away from the economy in many ways. By not creating the physical product, but still consuming it in the United States, the economy is still essentially receiving the taxes from the creation or sale of the good. However, the economy is missing out on income taxes collected from factory employees, as well as money that those same workers would be spending to stimulate our economy if their job was not outsourced. This means that there will be less money spent by consumers on products that companies like Apple produce.

On the other hand, globalization in technology has negative effects internationally, too. This proceeds into affecting business on a global scale. As stated earlier, companies receive pennies on the dollar for the products they produce, which results in poor working conditions and wages for people employed in these jobs. Poor wages for workers is directly correlated to the inability to buy non-essential items such as iPads, MacBooks or iPhones. So, by utilizing globalization, Apple is technically limiting the number of products that they will sell. Continuing this thought, it is well-known that an alarming number of factory workers for Apple have committed suicide due to exhaustion in their situations. A negative stigma and reputation could be associated with Apple for the reasons behind this, causing additional units to not be purchased. This would be all thanks to the initial effects of globalization, and illustrates how complicated the issues caused by globalization can be.

Competing companies are also affected by globalization of technology. For example, when Company One sends the manufacturing of their products abroad, there are many negative impacts on similar businesses. There are missed sales opportunities for other companies because Company One is able to sell their product for significantly less due to domination in the market in consumer interest. The consumer seeks cheaper items with available supply. The supply tends to be greater because larger manufacturers can supply more product for less, driving the demand up even more. Company One is unable to be competed with because their cost to bring the product to market is significantly less.

The effects of globalization on business are so severe that more emphasis needs to be placed on the discussion of pros and cons when making a decision of outsourcing a company. Although it may bring a company more profit, they should consider what lengths they are willing to go to achieve this goal. They should deliberate the effects of globalization on their home country as well as international countries. While outsourcing may be positive for themselves, low wages, poor work conditions and deteriorating mental health are terrible repercussions for workers abroad. Likewise, the negative effects one one’s own economy and competitors should be considered. Money that should be stimulating and circulating through one’s own economy is now in another country. Additionally, competitors in the same industry will have trouble keeping up, and could be forced to cease business. Neither of these factors are positive for one’s country. Finally, the most important point about globalization would be the long-term effects on global business. Higher profits may be seen initially, but overall, globalization affects the consumer and all countries involved so much that sales volume will likely decrease as time passes. This blatantly cancels out the main goal of globalization for a company in the first place.

4 Benefits of Importing Goods From Overseas

Any business involved in supplying goods or materials needs to constantly look at ways to increase the efficiency of the supply chain, while also managing costs. A practical solution to improve profit margins is to look to the overseas market for the raw materials. Importing goods can offer a variety of worthwhile benefits, such as high-quality goods, lower prices and a wider range of suppliers. While the opportunity to import goods is great for a lot of businesses, it is still essential to conduct the necessary research to avoid making a costly mistake.

Here are a few benefits related to importing from overseas:

Comparative advantage

A major reason to import relates to comparative advantage and the potential to benefit from the more attractively priced goods. Comparative advantage relates to finding the overseas market with the more favorable production costs, such as lower tax schemes, low labor costs, cheaper raw materials, etc. By cutting the initial investment in materials or products, it makes it that much easier to increase future profits once the items are shipped back and sold in your own country. This makes importing one of the easiest and quickest ways to boost your profit margins and cut costs.

High quality products

Importing goods from countries across the world still mean it is possible to source high-quality products. There are plenty of countries that have their own specialties and strengths. For the business that is looking to buy raw materials or goods from a country that specializes in a particular item, it often pays to buy direct from the source. This means it is possible to get access to the finest materials right at the start of the supply chain which should help to improve all-round quality and hopefully make the end product that much more marketable.

Trade relations

There are plenty of countries that attempt to promote trade relations to make it that much easier to import the desired goods or products necessary for your business. Government agencies may even be set up to help make the entire importing process as straightforward as possible. With the guidance of an official agency in place, the risks of trading with an overseas company are likely to be significantly reduced.

Regional resources

A further benefit is the ability to expand the potential market pool with the choice to buy resources that may only be found in specific regions of the world. This may relate to special technologies or raw materials.

The War of Manual Translation and Online Translation in the Modern World

With the advent of computers and related technologies more and more tasks are done on it rather than by humans. But as always machine has its own limitations and humans its own advantages. Tools like Google Translate, Yandex Translate, Linguee and many others offer instant translations of a web page, document, and mails and so on. This aspect lures the users and makes them choose such machine translation services over manual services for their everyday purpose.

This can look threatening to millions of linguists all over the world who put rigorous efforts to translate every text, document they are given. There are thousands of translation companies who hire professional translators worldwide. The rise of machine translation definitely put their career at stake. The good news is it is not that gloomy as it seems. Now things to consider here is that both manual translation and machine translation have their own place in the market and serve different purposes. Let’s discuss this in detail:

Pros of Online Translation

  • Online translations are always free and do your job at no extra cost. This is the top most reason why people go for this service.
  • Their service is quick and fast. It only takes a moment to get your text translated by online translator tools.
  • There are thousands of languages that can be translated using these online translation tools.

Cons of Online Translations

  • Computer works on set rules and algorithms. Language is not a set of algorithms or mathematical formulas and therefore not completely lends itself to them.
  • It runs on artificial intelligence which cannot understand the nuances, dialects and anecdotes of the languages. The translation is never comprehensive and localised.
  • It never understands the context of the translated material. It is unable to modify itself as per the target readers and their sensibilities. So it can never express the right emotion in its translated text.
  • It is mechanical and lacks a human touch. The translation is done from word to word and hence cannot replicate the exact meaning in the translated sentence and make it sound natural and fluent.
  • Behind every translation project goes a lot of study and research. Machine cannot do that like humans do.
  • Although most of the languages are covered in online translations, still there are some languages which are left out of their list.

With all its pros and cons these online translation tools have their own space in the market. There are number of areas where it comes really handy. But before indulging in them it is wise to know about its various aspects and then use it accordingly. Here are some of the areas where they can be safely used, such as:

  • When it comes to quickly understand the main point or gist of a website or of a selected page it is best to use online translation tools. They offer instantaneous translations.
  • It also comes very handy to determine the native language of any document when in doubt or unaware of. For that you don’t have to spend too much time and get the result immediately.
  • This comes as a very useful medium when you are at some informal conversation. With its prompt service you get the desired translation then and there without any fuss and keep the conversation going.

Various Aspects of Manual Translation:Translation services have a huge area to cover. Most importantly there are business materials, marketing projects, scientific and medical research related topics which particularly need help of professional language translators and user manual translation companies. Here is an overview of the areas which require manual translation:

  • For any official communication, the best choice is undoubtedly a professional translator. The way a professional translator can represent your views, messages, no machine can do.
  • Whenever you are targeting global market it is very important to localise your website and marketing strategies as per the culture and sensibilities of that place. An experienced professional translator can only do that and no other machine or translation tool can.
  • To keep the momentum of your brand’s success in native language intact in other languages, when you are trying to reach a wider audience a professional translator is of immense help. They can express the same tone of your native language in target language to help you connect with people of your choice better.
  • For corporate sector a professional translator can do what no translation tool can ever do. They can express their opinions accurately to the target audience as well as market their brand effectively in any language.
  • You will find a translator of any language which is sometimes difficult in online translation tools.

The Final WordAlthough online translation and manual translation may seem contradictory and threatening to each other they are truly not. Both are required in their own way. In this fast paced world the quick and instant online translation tools come very handy for informal or personal use. But when it comes to formal and official matters that would have great impact on your brand name and reputation. There is no alternative to a professional translator. So, these two systems can easily co-exist and continue to serve the world in their own unique ways.

The author is an expert content writer experienced in preparing diversified contents related to language, translation and transcription. So far she has produced many articles related to translation in foreign languages like Hungarian, Danish, and also have completed transcription of regional languages into English. The author is an employee of the well known and professional languages service provider: Somya Translators Pvt. Ltd. With years of experience, trusted team of Somya Translators proves to be the first and best choice.

A New Job Means More Money In Hong Kong

A recent global salary survey by Robert Walters looked at the pay packages Hong Kongers are expected to receive this year. Numerous publications have jumped on the data to announce that job-hoppers can be expected to get pay rises of 20-30% in 2016.

Professionals in areas such as IT, Compliance and Anti-money Laundering are particularly expected to benefit.

There are a couple of different concepts that spring up from this survey, but one interesting angle is how a company actually justifies offering this type of pay rise to a new employee.

Logically there can only be one of two conclusions to the above data. Either these employees are currently underpaid in their jobs and are moving to a fairer compensation package or companies are so in need of talent that they are willing to over-pay for talent that was otherwise being remunerated at a fair level.

Whichever scenario is closest to the truth, it’s important for employers to be able to explain, if not outright justify the reasons for offering such a high percentage increment to an applicant. The same explanation could be equally important for both internal and external perceptions of the hire.

Two of the Best Reasons are:

Skills and Experience
Possibly the best reason to justify offering a significant increment to a potential employee is to do so because of their skills and experience. For the employee-to-be it’s an acknowledgement of the value they bring to the business. Justifying this type of hire internally is also far easier to do given the potential upsides that a new skillset can bring.

Business Expansion
Some business models can scale significantly based on the amount of staff in the company. If your company is going to miss its strategic goals or could make more revenue if only there were more staff, then this can justify significant salary increments. For the incoming employee, it is motivating to know they are joining a secure and stable business who simply need to expand staff numbers to continue their revenue growth. Internally, as long as the new arrival isn’t cannibalizing existing relationships, current staff are unlikely to mind an extra person to share the workload with.

One of the Worst Reasons is:

We couldn’t find anybody else
If you come even close to needing to use this as a justification then it’s probably worth reconsidering making the hire in the first place. Internally this never looks good. Your recruitment process and ability as a hiring manager will always be questioned if it looks as though you were forced to “bid-up” a candidate through lack of options, even if in some cases it’s the truth.

How UK SME’s Can Use Brexit As an Opportunity to Grow Their European Business

For the 48% of us that voted to remain inside the European Union, the referendum result came initially as an unwelcome shock to most of those who are in the business of doing business. But as Napoleon Hill once pointed out, every adversity, every failure, every heartache carries with it the seed of an equal or greater benefit.

Agile and forward thinking UK SME’s can mitigate the risks associated with leaving the EU by structuring their affairs in such a way that they do not actually leave it at all.

Creating an EU subsidiary will not only allow them to capitalise on the opportunities afforded by continuing to freely trade with the remaining 27 member states within the world’s largest trading bloc, but also it will give them a distinct advantage over their UK competitors who don’t seize the initiative and simply retreat behind the drawbridge and wait to see what happens next. Procrastination is not only the thief of time, it also does a pretty good job of ensuring that business is not as brisk as it should be.

Consequently, the post-Brexit period of widespread uncertainty in which we now find ourselves in is the perfect time for UK companies to secure their future by opening a branch office in Europe’s powerhouse economy, Germany.

Not only will so doing ensure that they can continue to trade and to provide services throughout the entire European Union but also it will alleviate any fears that customers or suppliers might have by demonstrating that they are fully committed to the European project, despite the Brexit outcome and all the uncertainties associated with it.

Securing a foothold in Europe’s key market, therefore, offers enormous advantages to SME’s already trading with Germany, but also to companies that have been considering establishing a presence in Europe anyway.

Only an hour or so flight from most UK airports, Germany has a business friendly tax and legal system and its central location within Europe makes it the natural choice for British companies looking to establish a subsidiary or branch office on the continental mainland.

The most common legal form is to establish a GmbH (Gesellschaft mit beschränkter Haftung) which is German for “company with limited liability” – The name of the GmbH form emphasizes the fact that the owners (Gesellschafter, also known as members) of the entity are not personally liable for the company’s debts.

It is widely accepted that a GmbH is formed in three stages: the founding association, which is regarded as a private partnership with full liability of the founding partners/members; the founded company (often styled as “GmbH I.G.”, with “I.G.” standing for in Gründung – literally “in the founding stages”, with the meaning of “registration pending”); and finally the fully registered GmbH. Only the registration of the company in the Commercial Register (Handelsregister) provides the GmbH with its full legal status.

Under German law, the GmbH must have a minimum founding capital, from which €12,500 have to be raised before registering in the commercial register. The company is run only by the managing directors (Geschäftsführer) who have an unrestricted proxy for the company and must be either a national of a European Union country or have a German work permit. Shareholders, on the other hand, can be any UK entity, be it a person or a UK Limited company.

Other factors to bear in mind when establishing a presence in Germany includes securing a business address, launching a German language website – local law dictates this must include an ‘impressum’ which outlines company details, appointing a good tax consultant, and hiring at least one German speaking representative that can help during the formation period and possibly beyond.

Unlike in the UK, joining the local chambers of commerce is mandatory. However, doing so will allow members grow their business contacts. Social network XING is their LinkedIn, which is another useful way to engage with prospective customers or partners.

Brexit came as a shock to most Germans. Many are Anglophiles at heart and would welcome the opportunity to continue working with British companies that elected not to leave the European Union after all.

Top 9 Unbeatable Gold’s Realities and the Economic Impact on the United States of America

Based on available statistics and history, the gold boom of 1800s has significant economic impacts on the USA and of course brought magnificent human migration into America.

This yellow substance (gold) was discovered by John Sutter in Northern California about 1848 and 90% of gold mined were extracted from the ground according to human history.

However, with technological advancement in all areas, the exploration of gold has become a major and booming business with indelible mark in the growth of US economy and migration to America.

In view of the above, it becomes pertinent to made mention of the following realities about gold and how it brings a turn-around in US economy;

1. 1852 statistics of gold. About 92% of the major key players in the gold booming business of that time were male while the insignificant female was assigned to ancillary services such as servers and brothel employees.

2. John Sutter’s mill. This was originally known as inception-base of gold mill situated in California. Despite the significant, unbeatable and unforgettable discovery (gold) of John Sutter, prevalent records shows that he was not rich by this ancient landmark discovery. In fact, information revealed that his workers abandoned the mill in search for gold and this mill was later over-run by prospectors.

3. Boomtown merchants. These were fully in control of the booming business of that time and they even generated more revenue than those in the actual business of gold mining. Due to the success of these merchants and the available captive markets gave birth to major companies of today, to mention but few, Wells Fargo, Studebakers and Armour Foods.

4. Mass migration into USA. This great discovery and adventure resulted to the biggest human migration in American history, initial with about 100, 000 people in California Territory compared with the 7, 000 non-indigenes as at January 1848.

5. The North Carolina experience. History tells us that 17 pound gold nugget was discovered in Cabarrus County in 1798 with about 30, 000 people involved. Really, this was not an eye-opener until the John Sutter discovery of 1848.

To this end, the gold boom shaped the US economy in the highlighted ways;
6. Booming merchants and commercial businesses were established. Sutter’s discovery brought a real turn-around in US economic activities. It was during this period that some of the major businesses and household names that we know today were established.

7. Massive population increase. Prior to Sutter’s gold discovery, records showed that about 150 people lived in Old Sacramento and California Territory having a population of few thousands. The 1848 gold search and business brings about exponential growth and geometric progression in the population of America.

8. 1850 financial union. That year, California was listed in the union of financial boom and the increased population made it a center of attraction to US politicians.

9. Massive growth in the agricultural and transportation sectors. During this period, more roads, bridges and railway lines were constructed and agricultural business and farming grew magnificently that California became self-sufficient in agricultural and food productions.

Now, intrinsically when we write about gold, we are not talking of fables but precious metals/bullion that can be trace back to human history. Furthermore, how you utilized this cogent information for your 401k and taxation planning will definitely have significant impact on your retirement, estate and old age. See you at the top.

Adewale Olofinnika has his primary calling in Risk Management, a chartered risk manager that have been operating in the financial market for over two decades; being fitted by knowledge, training and passion he became an internet marketer and expert writer who has made landmarks in various niches on the internet. Of paramount importance in all dealings are professionalism, ethics, attention to details, integrity, uprightness etc.

Gold Bullion is the Wisest Choice to Utilize Your 401k (USA)

Obviously, as citizens or residents of the United States of America, retirement planning/saving account is cogent issues towards maximizing your financial future/security to fullest. And investment in gold bullion is the safe haven through the mechanism of utilizing proceeds of the 401k.

This might be a strategic or challenging decision for young employees/graduates but a watchword for them is to keep their “credit life” (Credit Cards) very low and make provisions for the “rainy day” by signup to their employer’s 401K.

Bolts and Knots of 401K
401K is retirement savings/investment account whereby the employees set aside certain part of the monthly salary before tax. Majority of the employers have this package or corresponding equivalents for their employees for the purpose of enhancing long term savings.

Almost every contract have the pros and cons, 401K also is not exempted. The identifiable merits of 401K are highlighted below;
1. Deferred taxation. The contribution from your salary towards the 401K is deducted at source before taxation. Therefore, it is tax-free at the time of contribution but the tax applicability is deferred to later years when you are cashing out of the system.

2. Reduction in taxable income. Sequel to number one above, because your contribution is not taxable, the tax payable by you is based on the balance of your salary after the deduction for 401K. This has drastically reduced your taxable income and tax paid on weekly/monthly basis as the case may be.

3. Matching contribution. The 401K is a saving towards your retirement and your employer also supposed to be part of that contribution. Some employers that recognized the importance of retirement provisions for their employees offered a matching contribution, which is a specified percentage added to the contribution of the employees.

4. Long term savings/investment. This retirement savings can be for several years (long term), take for instance an employee that join the service of the employer at age 20 can have the opportunity of contributing until retirement age (60 years). That means his/her contribution is for a period of 40years, thus having a huge accumulation of fund at retirement.

5. Compounded ROI. The returns on investment is compounded and this will enhanced the speedy growth of the accumulated fund over years.

The opposite of the above are the drawbacks of 401K retirement planning as specified below.
i. Limited investment opportunities. You only have the option of choosing investment opportunity among those provided by scheme in-house or managed by advisory.

ii. High operational expenses. The professional fees and other expenses in managing the scheme is usually high compare with the individual retirement account (IRA).

iii. Pre-retirement cash-out penalties. Early cash-out from the scheme will merit a penalty being a specified percentage as stated by the terms and conditions of the investment portfolio.

Now, having discussed extensively about the advantages and disadvantages of 401K, the question is how do l utilized my 401K retirement savings.

Utilization of 401K retirement fund
Sincerely, you have various options at your disposal ranging from company stock to index fund, bond, “target date” retirement fund etc.

To this end, the simplest course of action is to pinpoint the lowest cost and most diversified investment fund that take cognizance of gold bullion as part of the investment combo.

You can also read other publications on this blog that specified the importance/reasons why gold bullion must be part of your investment portfolio.

Adewale Olofinnika has his primary calling in Risk Management, a chartered risk manager that have been operating in the financial market for over two decades; being fitted by knowledge, training and passion he became an internet marketer and expert writer who has made landmarks in various niches on the internet.