Bitcoin was invented as a peer-to-peer system for online payments that does not require a trusted central authority. Since its inception in 2008, Bitcoin has grown into a technology, a currency, an investment vehicle, and a community of users. In this guide we hope to explain what Bitcoin is and how it works as well as describe how you can use it to improve your life.

What is Bitcoin?

Since anything digital can be copied over and over again, the hard part about implementing a digital payment system is making sure that nobody spends the same money more than once. Traditionally, this is done by having a trusted central authority (like PayPal) that verifies all of the transactions. The core innovation that makes Bitcoin special is that it uses consensus in a massive peer-to-peer network to verify transactions. This results in a system where payments are non-reversible, accounts cannot be frozen, and transaction fees are much lower.

Where do bitcoins come from?

Buybitcoinworldwide go more in-depth about this on the page about mining, but here’s a very simple explanation: Some users put their computers to work verifying transactions in the peer-to-peer network mentioned above. These users are rewarded with new bitcoins proportional to the amount of computing power they donate to the network.

Who controls Bitcoin?

As mentioned above, there is no central person or central authority in charge of Bitcoin. Various programmers donate their time developing the open source Bitcoin software and can make changes subject to the approval of lead developer Gavin Andresen. The individual miners then choose whether to install the new version of the software or stick to the old one, essentially “voting” with their processing power. It is in the miners’ best interest to only accept changes that are good for the Bitcoin currency in the long run. These checks and balances make it difficult for anyone to manipulate Bitcoin.

How to get started with Bitcoin

The best way to learn about Bitcoin is to get some and experiment. www.buybitcoinworldwide.com have written articles about how to set up your own Bitcoin wallet, how to acquire bitcoins, and how to use bitcoins to help you get going. They have also written about a number of other Bitcoin topics if you prefer a hands-off approach to learning. If your questions remain unanswered, please contact www.buybitcoinworldwide.com and ask us anything you like.

All the best

Stuart

CEO

Farringdon Group

+60 3 2026 0286

Article – Courtesy of www.buybitcoinworldwide.com

• US retail sales improve, CPI boosted by gasoline
• IMF nudges up global growth forecast
• Brexit talks at apparent impasse
• FOMC on course for December rate hike

Stocks continued their advance into record territory, marking the fifth consecutive weekly gain for the large-cap Dow Jones Industrial Average and S&P 500 Index. The week brought the first releases of major third-quarter earnings reports, with JPMorgan Chase and Citigroup falling Thursday after reporting lower fixed income trading revenues and higher set-asides for credit card losses. Wells Fargo reported an earnings’ decline on Friday, further weighing on the broader financials sector.

Consumer staples stocks performed well, boosted by a surge in Wal-Mart shares after the retail giant announced a massive share repurchase program and predicted a strong rise in online sales. Oil recouped some recent loses, rising to $51.50 per barrel from $49.50 last Friday.

MACRO NEWS

US retail sales rebound in September

After dipping 0.2% in August, US retail sales rebounded strongly in September, rising 1.6%. Higher gas prices in the wake of Hurricane Harvey and a jump in auto sales were major contributors. Higher gas prices also contributed to a 0.5% advance in the Consumer Price Index in September. Stripping out food and energy, prices rose a muted 0.1% last month.

IMF kicks off fall meeting with growth upgrade

As finance ministers and central bankers gather in Washington this week for the fall meetings of the International Monetary Fund (IMF) and World Bank, IMF economists released their latest World Economic Outlook. The fund’s growth forecast was slightly more upbeat, with global gross domestic product expected to expand 3.6% this year and 3.7% in 2018, a 0.1% increase from the last update in July.

IMF chief economist Maurice Obstfeld called the current global acceleration notable because it is more broad-based than at any time since the start of this decade. This year runs counter to many recent years when economists were forced to trim overly optimistic forecasts rather than raise them.

Juncker: Pay first, talk later

European Commission president Jean-Claude Juncker said on Friday that the United Kingdom would need to pay its “divorce bill” before discussions can proceed on trade and future relations between the UK and the European Union.

The EC leader said that negotiations have advanced more slowly than expected and that it is unlikely the European Council will agree when it meets next week that sufficient progress has taken place for negotiations on the future relationship to begin. Earlier in the week EU chief Brexit negotiator Michel Barnier said discussions on the financial settlement were deadlocked.

Fed signals December rate hike likely

Minutes from the September meeting of the US Federal Reserve’s Federal Open Market Committee show that “many” members thought another rate hike was likely to be warranted late this year if the economic outlook remains roughly unchanged.

However, some members expressed concerns that recent soft inflation data may not be temporary, owing to idiosyncratic factors, as the committee has stated in the recent past. Falling prices for things such as mobile phone service and prescription drugs have temporarily suppressed inflation, according to the Fed.

Trump takes executive action on health care

With efforts to repeal and replace the Affordable Care Act blocked in Congress, US president Trump this week issued an executive order to reform the health care sector. The order allows employers to band together to form groups, potentially lowering the cost of coverage. It also allows insurers to offer coverage across state lines.

In addition, the administration is expected to announce later today that it will halt payments to insurers to offset government subsidies for low-income purchasers. Insurance carriers have been raising premiums in recent months in anticipation that the payments would be halted.

ECB setting stage for next policy phase

The European Central Bank appears to be moving towards shifting its exceptionally easy stance over monetary policy before the end of the year. One proposal reportedly being considered by the ECB is to cut in half the rate at which it buys European bonds, from €60 billion to €30 billion beginning in January, and keeping the program active for at least nine months.

At the same time, ECB president Mario Draghi said in Washington that policy rates will not be raised until well past the end of quantitative easing. Markets appear to be focusing on the policy rate forecast more than the QE rumors, with 10-year German bund yields falling 4 basis points on Friday to 0.41%.

European Stocks Rise

European stocks ended the week higher, with two key benchmark indexes, Britain’s FTSE 100 and Germany’s DAX 30, reaching record highs. A slide in the pound boosted investor confidence in the multinational companies that dominate the FTSE 100 and generate sales in foreign currencies. Mining stocks were strong, buoyed by solid import demand from China.

The pan-European benchmark Stoxx 600 ended the week marginally higher. European equity funds posted solid weekly inflows overall, according to EPFR Global data.

All the best and have a great week

Stuart

CEO

Farringdon Group

+60 3 2026 0286

• Nonfarm payrolls fall in wake of hurricanes
• Catalonia expected to declare independence
• Global economy continues to purr
• Fed short list makes rounds
• Trump expected to de-certify Iran nuclear deal

Global equities extended their gains this week, with the MSCI All Country World Index hitting a record high. Solid economic data and hopes for a tax reform package helped push the yield on the US 10-year Treasury note to 2.38% from 2.32% a week ago. West Texas Intermediate crude oil slipped to $49.50 a barrel from $51.50 last Friday while equity volatility, as measured by the Chicago Board Options Exchange Volatility Index (VIX), closed at a record on Thursday and traded at 9.50 early Friday.

US payrolls fall for first time since September 2010 
Hurricanes Harvey and Irma combined to bring an end to a seven-year streak of positive US payroll reports. Thirty-three thousand jobs were lost in September as a result of the storms, though the unemployment rate dipped to 4.2% due to a temporarily smaller labour force. Average hourly earnings rose to an annual rate of 2.9%, but economists warn that storm-related distortions are likely partially responsible for the rise. It is likely to be another month or so before the storms’ impacts work their way through the data. An unexpected positive effect of the hurricanes was a spike in September auto sales as consumers replaced vehicles damaged in the storms.

Declaration of independence expected from Catalonia
Catalonia, the wealthy Spanish region that is home to Barcelona, is expected to declare independence from Spain next week. The move comes in the wake of a crackdown by the Spanish central government on 1 October intended to suppress an independence referendum. Ninety percent of the ballots cast were for independence, with those opposed largely boycotting the vote. Analysts expect next week’s declaration to be largely symbolic, and Catalan leaders are likely to accept a devolution of powers from Madrid, particularly on fiscal matters, rather than pushing for a complete break. Catalonia pays roughly €10 billion more to the Spanish central government than it receives in state services.

Global economy continues expansion
Figures from the United States, Europe and China released this week all showed continued solid economic growth. September figures for the US manufacturing and services sectors both showed their strongest readings in more than a decade, but the US data may have been somewhat distorted by the recent hurricanes. The Institute for Supply Management manufacturing index rose to 60.8, the highest level since September 2004, while the nonmanufacturing reading came in at 59.8, a level not seen since August 2005. European data were similarly robust, and China also showed continued upward momentum.

Trump reportedly narrows the Fed chair field
Bloomberg News reported this week that aides to US president Donald Trump have narrowed the list of candidates for chair of the US Federal Reserve to four, or perhaps five, people. Trump has reportedly spoken with Fed chair Janet Yellen about re-upping, though she is not expected to receive reappointment, according to the report. Sitting Fed governor Jerome Powell, former governor Kevin Warsh and National Economic Council director Gary Cohn have all reportedly spoken with the president about the position, while Stanford University economist John Taylor has apparently not been interviewed but is said to be under consideration. All are known quantities to the markets, with Warsh and Taylor seen as the most hawkish of the group.

Iran nuclear deal expected to be decertified 
In a move that will likely draw criticism from European allies, President Trump is expected next week to decertify that the Iran nuclear deal — designed to restrain Iran’s nuclear ambitions — is in the security interests of the US. Presently, the president must certify the agreement every 90 days. If the president withholds certification, Congress then has 60 days to decide whether to reimpose sanctions on Iran. It is possible that the pact will ultimately hold together if Congress does not apply sanctions.

Puerto Rico’s bonds gyrate after talk of restructuring
An offhanded comment from President Trump that the $73-billion debt of Puerto Rico may get wiped out sent the island’s general obligation bonds skidding in price this week. Trading near 44 cents on the dollar before the comments, the bonds fell to around 30 cents before stabilizing, according to the Wall Street Journal. The White House later indicated that it does not intend to get involved in Puerto Rico’s restructuring.

First steps toward US tax reform underway
The US House of Representatives took the first step toward passing a tax overhaul by approving a fiscal- year 2018 budget blueprint. Congress must pass a budget before a tax bill is allowed, under Senate budget reconciliation procedures, to pass in that body with only 51 votes, rather than the 60 needed to end a filibuster. Passage of the House measure ups the odds that tax reform could be enacted early in 2018.

All the best and have a great week

Stuart

CEO

Farringdon Group

+60 3 2026 0286

Savers are being thwarted from cashing in their “final salary”-style pensions because financial advisers are refusing to work with them over fears of compensation claims.

Millions of people with final salary pensions, where income is based on salary and length of service, have the right to move their savings into other pension arrangements.

Thousands have chosen to do this because, while the schemes offer guaranteed, inflation-linked income paid by their former employers, they do not allow lump sum withdrawals and are less tax efficient on death. The terms that savers are offered are often very generous.

It is not unusual to be offered a “cash equivalent transfer value” of 40 or 45 times the projected annual income that a final salary pension would pay. So £6,000 of annual income could become £250,000 once moved into a personal pension.

Under rules set down by the City watchdog, financial advice must be sought before the pension can be moved if the transfer value is £30,000 or more. Charges vary, but are typically thousands of pounds.

However, savers are finding that firms are wary of advising them if they suspect they will not be able to recommend a move. At the same time, the path is blocked by personal pension providers that will refuse to accept a transfer from a final salary scheme without a “positive recommendation”.

Many cite the “pension review” of the Eighties and Nineties, which led to billions of pounds being paid in compensation after advisers were judged to have wrongly recommended people to give up company schemes for personal pensions.

As a result, dozens of people are being prevented from taking control of their money. Transfer values are unusually high at the moment and there are fears that the delay in finding advisers and firms willing to help will mean savers lose out, we can help !

Members of final salary schemes can receive a transfer value free of charge once a year. But the offers are only guaranteed for three months, meaning that savers have to pay for new valuations if they can’t arrange a transfer quickly enough.

We can assist anyone to get a valuation and work out the best option for your future, there is a number of calculations we can put together along with a report, peace of mind and accountability

Please email me at syeomans@farringdongroup.com

All the best

Stuart

CEO

Farringdon Group

+60 3 2026 0286

Courtesy of Daily Telegraph

As things stand today, there has never been a better time to consider cashing in a final salary pension AKA DB Scheme.

This is down to the fact that transfer values (the transfer offers on the table from employers) are at record highs.

Some schemes are offering transfer values of 40 times the annual pension, so £800,000 today for an inflation-linked pension of £20,000 a year for life. Offers on the negotiating table are much more generous compared to previous years. As a rule of thumb, prior to the pension freedoms transfer values were typically around 20 times

Transfer values have risen so dramatically because yields from bonds – in which final salary and defined benefit pensions are mainly invested – have fallen to record lows.

Low bond yields increase the cost to pension schemes as they need larger funds to produce the same income, which is why they are keen to reduce their liabilities and get pension savers with financial salary pensions off their books.

For those who have other assets to help generate retirement income, transferring can work as a means of passing the pension on to younger generations of the family.

In the case of defined benefit schemes, the full benefits stop when your spouse dies. If you both die early – it is simply a case of tough luck. Moreover, if you are widowed or divorced the pension will end on your death, with no benefits paid to children or grandchildren.

By transferring out, your pension pot can be passed on to whomever you wish. For those who are seeking to leave a legacy to their family, then by transferring out and into a personal pension plan they can leave the whole fund to them on their death.

In addition, thanks to new rules brought in a couple of years ago, transferring may prove worthwhile for inheritance tax planning purposes. Heirs now just pay income tax at their marginal rate when the money is withdrawn – and that only applies when the person from whom they are inheriting the money was over the age of 75.

For pensions inherited on deaths before the age of 75 there is no tax to pay. Therefore, for those in the position of being able to draw on other assets, the pension pot should be the last thing to touch.

A pension valuation is free and you may be very pleasantly surprised at how much its worth. These high transfer valuations are not going to last however, with interest rates set to rise in the next 6 months now is the time to strike.

Please don’t hesitate to contact me by phone on +60 3 2026 0286 or by email syeomans@farringdongroup.com if you’d like to consider getting a free valuation of your UK pension

All the best and have a great week

Stuart

CEO

Farringdon Group

+60 3 2026 0286