CREATIVE FINANCE
TOP 10 CREATIVE FINANCING TECHNIQUES!
Sometimes a loan from your bank isn’t going to meet your needs. Below are ten
techniques to get your creative financing wheels turning!
1- Interest-only loans – If you are an investor looking to purchase, rehab, and sell a
property quickly, an interest-only loan may make sense. This financing allows you to
make small payments at the beginning of the loan, leaving more money for renovations.
When you sell the property for a profit, you can pay off the loan in full, having paid only a
small amount of interest.
2- Seller carry-back – Also known as owner-financing, the seller of the property agrees
to finance the property outright. They transfer the title to you in exchange for a
promissory note and deed of trust for the full purchase price of the property.
3- Seller second mortgages – If the buyer can obtain a loan, but not for the full price of the
property, sometimes a seller second mortgage is what is needed to make the
transaction possible. In this case, the bank mortgage pays the seller for the bulk of the
amount owed (for example 80 percent), and the seller deeds the property to the
purchaser in exchange for a promissory note for the amount of the balance remaining (in
this example 20 percent).
4- Contract for deed – Similar to seller carry-back, a contract for deed is another method
of owner- financing. The difference under a contract for deed is that the seller retains
title to the property until the mortgage has been paid in full.
5- Private mortgages – Private mortgages work like mortgages from a bank, but since
the lender is an independent entity, they can follow different guidelines for lending.
Interest rates are often higher, but this creative mortgage technique allows more
borrowers to qualify for a loan.
6- Assume payments – If you can find a seller who needs to sell a property quickly and
has financing in place, you can assume the seller’s payments, often with little or no down
payment.
7- Short sales – A short sale is when a seller markets the property for less than the
amount owed against it and the lien-holder agrees to accept that amount as payment in
full. This is often done to avoid the credit implications and costs of foreclosure.
Purchasing short sales allows you to purchase property at a discounted price. The
resulting immediate equity in the property makes this a wonderful creative financing
strategy!
8- Lease options – A lease option allows the buyer to rent the property for a given amount
of time, with a portion of their rent credited toward the purchase price of the home. At the
end of the lease, the buyer has the option to purchase the property at the amount agreed
upon when the lease was created.
9- Retirement accounts – Most retirement accounts will allow you to borrow from
yourself and repay the funds over time at a low interest rate. What a great creative
financing resource!
10- Loans from family and friends – Friends and family may be willing to invest in your
business in the form of personal loans. Talk to the people around you, share your
enthusiasm and your needs, and perhaps “Aunt Jan’s” loan will be the next option in your
creative financing approach.
Sometimes a loan from your bank isn’t going to meet your needs. Below are ten
techniques to get your creative financing wheels turning!
1- Interest-only loans – If you are an investor looking to purchase, rehab, and sell a
property quickly, an interest-only loan may make sense. This financing allows you to
make small payments at the beginning of the loan, leaving more money for renovations.
When you sell the property for a profit, you can pay off the loan in full, having paid only a
small amount of interest.
2- Seller carry-back – Also known as owner-financing, the seller of the property agrees
to finance the property outright. They transfer the title to you in exchange for a
promissory note and deed of trust for the full purchase price of the property.
3- Seller second mortgages – If the buyer can obtain a loan, but not for the full price of the
property, sometimes a seller second mortgage is what is needed to make the
transaction possible. In this case, the bank mortgage pays the seller for the bulk of the
amount owed (for example 80 percent), and the seller deeds the property to the
purchaser in exchange for a promissory note for the amount of the balance remaining (in
this example 20 percent).
4- Contract for deed – Similar to seller carry-back, a contract for deed is another method
of owner- financing. The difference under a contract for deed is that the seller retains
title to the property until the mortgage has been paid in full.
5- Private mortgages – Private mortgages work like mortgages from a bank, but since
the lender is an independent entity, they can follow different guidelines for lending.
Interest rates are often higher, but this creative mortgage technique allows more
borrowers to qualify for a loan.
6- Assume payments – If you can find a seller who needs to sell a property quickly and
has financing in place, you can assume the seller’s payments, often with little or no down
payment.
7- Short sales – A short sale is when a seller markets the property for less than the
amount owed against it and the lien-holder agrees to accept that amount as payment in
full. This is often done to avoid the credit implications and costs of foreclosure.
Purchasing short sales allows you to purchase property at a discounted price. The
resulting immediate equity in the property makes this a wonderful creative financing
strategy!
8- Lease options – A lease option allows the buyer to rent the property for a given amount
of time, with a portion of their rent credited toward the purchase price of the home. At the
end of the lease, the buyer has the option to purchase the property at the amount agreed
upon when the lease was created.
9- Retirement accounts – Most retirement accounts will allow you to borrow from
yourself and repay the funds over time at a low interest rate. What a great creative
financing resource!
10- Loans from family and friends – Friends and family may be willing to invest in your
business in the form of personal loans. Talk to the people around you, share your
enthusiasm and your needs, and perhaps “Aunt Jan’s” loan will be the next option in your
creative financing approach.
The Five C’s of Credit: Capacity, Capital, Collateral, Conditions and
Character
When you apply for a loan, the lender will evaluate your request in order to determine whether
or not it is a good decision to lend you and your business money. A common evaluation
framework is the Five C’s of Credit: capacity, capital, collateral, conditions and character.
Capacity refers to your ability to meet the loan payments. The prospective lender will want to
know exactly how you intend to repay the loan. The lender will consider the cash flow from
the business, the timing of repayment, and the probability of successful repayment of the
loan. Lenders will also consider payment history as an indicator of future payment potential.
For example, if you have a history of not paying back loans then it becomes more difficult to
obtain additional loans.
Capital is the money invested in the business and is an indicator of how much is at risk
should the business fail. Lenders will generally consider the company's debt-to-equity ratio to
understand how much money the lender is being asked to lend (debt) in relation to how much
the owners have invested (equity). A high debt-to-equity ratio also indicates that the company
already has a high level of loans and could be a higher financial risk.
Collateral is a form of security for the lender. Banks usually require collateral as a type of
insurance in case you cannot repay the loan. If you default on the loan, then the lender takes
possession of the collateral in place of the debt. The loan agreement should carefully specify
all items serving as collateral. Equipment, buildings, accounts receivable, and inventory are
all potential forms of collateral. A lender will normally want the term of the loan to match the
useful life of the asset used as collateral. For example, if equipment with a five-year expected
life span is used as collateral, then the term of the loan will generally be five years or less. In
some cases, the lender may ask for a third-party guarantee where someone else signs a
document promising to repay the loan if you cannot.
Conditions refer to the intended purpose of the loan, for example working capital, additional
equipment, or new offices. The size of loan in relation to the specific use will help the lender
evaluate your loan request. Conditions also include the national, industry level, and local
economic situation. A volatile or unstable economic situation can negatively impact the
evaluation. However, positive expectations can increase the likelihood of obtaining the loan.
Character is the obligation that a borrower feels to repay the loan. Since there is not an
accurate way to judge character, the lender will decide subjectively whether or not you are
sufficiently trustworthy to repay the loan. The lender will investigate your payment history,
review a credit bureau report, and consider your educational background and experience in
business. The quality of your references and the background and experience of your
employees will also be considered.
Character
When you apply for a loan, the lender will evaluate your request in order to determine whether
or not it is a good decision to lend you and your business money. A common evaluation
framework is the Five C’s of Credit: capacity, capital, collateral, conditions and character.
Capacity refers to your ability to meet the loan payments. The prospective lender will want to
know exactly how you intend to repay the loan. The lender will consider the cash flow from
the business, the timing of repayment, and the probability of successful repayment of the
loan. Lenders will also consider payment history as an indicator of future payment potential.
For example, if you have a history of not paying back loans then it becomes more difficult to
obtain additional loans.
Capital is the money invested in the business and is an indicator of how much is at risk
should the business fail. Lenders will generally consider the company's debt-to-equity ratio to
understand how much money the lender is being asked to lend (debt) in relation to how much
the owners have invested (equity). A high debt-to-equity ratio also indicates that the company
already has a high level of loans and could be a higher financial risk.
Collateral is a form of security for the lender. Banks usually require collateral as a type of
insurance in case you cannot repay the loan. If you default on the loan, then the lender takes
possession of the collateral in place of the debt. The loan agreement should carefully specify
all items serving as collateral. Equipment, buildings, accounts receivable, and inventory are
all potential forms of collateral. A lender will normally want the term of the loan to match the
useful life of the asset used as collateral. For example, if equipment with a five-year expected
life span is used as collateral, then the term of the loan will generally be five years or less. In
some cases, the lender may ask for a third-party guarantee where someone else signs a
document promising to repay the loan if you cannot.
Conditions refer to the intended purpose of the loan, for example working capital, additional
equipment, or new offices. The size of loan in relation to the specific use will help the lender
evaluate your loan request. Conditions also include the national, industry level, and local
economic situation. A volatile or unstable economic situation can negatively impact the
evaluation. However, positive expectations can increase the likelihood of obtaining the loan.
Character is the obligation that a borrower feels to repay the loan. Since there is not an
accurate way to judge character, the lender will decide subjectively whether or not you are
sufficiently trustworthy to repay the loan. The lender will investigate your payment history,
review a credit bureau report, and consider your educational background and experience in
business. The quality of your references and the background and experience of your
employees will also be considered.
CREATIVE FINANCE CAN AND WILL MAKE ALL THE DIFFERENCE WHEN AN
INVESTOR DECIDES TO INVEST IN REAL ESTATE
Lease options and land contracts (also called agreements for deed) are two potentially very
useful no-money-down purchase techniques--both allow the buyer to obtain an interest in
real estate without initially having to qualify for traditional bank financing.
Understanding the differences between the two techniques can help you make an offer that
works best in any given situation.
Lease options
Lease options provide the buyer with the rights of a tenant for a period of time, while also
providing the right to purchase the real estate (a purchase option) within a given time frame.
As a tenant, you have the right to occupy the property and, if it's written in your
lease--especially with rental property--you should be able to sublease the property.
However, you should be aware that if you fail to comply with the terms of the lease, you can
be evicted and, in turn, forfeit the purchase option. Make sure that you have a buyer-friendly,
lease-option contract--like the one that is included in the No Down PaymentTM course--that
provides an assignable purchase option. This way you can sell your option, if necessary, and
still make money.
Lease-option price terms
Some lease-option contracts set an exact purchase price. In other cases, the purchase
price is not specifically stated in the contract, but is calculated based on the use of varying
formulas.
For instance, the contract may provide that the price be based on the appraised value as
determined by an appraiser. The price may also be calculated by taking the base purchase
price and applying a factor that accounts for inflation. In most instances, it is best for the
buyer to get the seller to agree on a set price "up front."
However, if the seller is reluctant, lease options--with a predetermined formula for
pricing-can provide the flexibility to make the prospective buyer less apprehensive. The
seller knows that, despite waiting for the buyer to purchase the property, the seller can still
benefit from any appreciation in value.
Land contracts
Land contracts differ from lease options because the buyer is actually given an ownership
interest in the property right away.
In most states, the buyer's interest in the property can be terminated only if the seller
complies with the procedure that's required for mortgage foreclosure. Additionally, because
the buyer has an ownership interest in the property, he or she can lease it, sell it, or even
obtain a refinance loan to pay off the balance of the purchase price.
Land-contract price terms
Land contracts usually specify that a portion of the monthly payment be applied to the
principal of the purchase price- with a portion applied to the interest. As a result, land
contracts allow the buyer to build equity in a property each time that they make an
installment payment.
Making the decision
A land contract gives the buyer a greater interest in real estate than a lease option does.
However, lease options can provide more flexibility for meeting the needs of a reluctant
seller.
As is always the case, you must understand the needs of the seller to be able to structure
"win-win" purchase strategies.
Once you have determined the seller's needs and understand the characteristics of both
lease options and land contracts, you will be able to present offers that can help you to
acquire real estate without obtaining traditional bank financing.
INVESTOR DECIDES TO INVEST IN REAL ESTATE
Lease options and land contracts (also called agreements for deed) are two potentially very
useful no-money-down purchase techniques--both allow the buyer to obtain an interest in
real estate without initially having to qualify for traditional bank financing.
Understanding the differences between the two techniques can help you make an offer that
works best in any given situation.
Lease options
Lease options provide the buyer with the rights of a tenant for a period of time, while also
providing the right to purchase the real estate (a purchase option) within a given time frame.
As a tenant, you have the right to occupy the property and, if it's written in your
lease--especially with rental property--you should be able to sublease the property.
However, you should be aware that if you fail to comply with the terms of the lease, you can
be evicted and, in turn, forfeit the purchase option. Make sure that you have a buyer-friendly,
lease-option contract--like the one that is included in the No Down PaymentTM course--that
provides an assignable purchase option. This way you can sell your option, if necessary, and
still make money.
Lease-option price terms
Some lease-option contracts set an exact purchase price. In other cases, the purchase
price is not specifically stated in the contract, but is calculated based on the use of varying
formulas.
For instance, the contract may provide that the price be based on the appraised value as
determined by an appraiser. The price may also be calculated by taking the base purchase
price and applying a factor that accounts for inflation. In most instances, it is best for the
buyer to get the seller to agree on a set price "up front."
However, if the seller is reluctant, lease options--with a predetermined formula for
pricing-can provide the flexibility to make the prospective buyer less apprehensive. The
seller knows that, despite waiting for the buyer to purchase the property, the seller can still
benefit from any appreciation in value.
Land contracts
Land contracts differ from lease options because the buyer is actually given an ownership
interest in the property right away.
In most states, the buyer's interest in the property can be terminated only if the seller
complies with the procedure that's required for mortgage foreclosure. Additionally, because
the buyer has an ownership interest in the property, he or she can lease it, sell it, or even
obtain a refinance loan to pay off the balance of the purchase price.
Land-contract price terms
Land contracts usually specify that a portion of the monthly payment be applied to the
principal of the purchase price- with a portion applied to the interest. As a result, land
contracts allow the buyer to build equity in a property each time that they make an
installment payment.
Making the decision
A land contract gives the buyer a greater interest in real estate than a lease option does.
However, lease options can provide more flexibility for meeting the needs of a reluctant
seller.
As is always the case, you must understand the needs of the seller to be able to structure
"win-win" purchase strategies.
Once you have determined the seller's needs and understand the characteristics of both
lease options and land contracts, you will be able to present offers that can help you to
acquire real estate without obtaining traditional bank financing.
| CREATIVE FINANCING: TOP 10 CREATIVE FINANCING TECHNIQUES AND STRATEGIES TO FIND MONEY TO INVEST CREATIVE FINANCE CAN AND WILL MAKE ALL THE DIFFERENCE WHEN AN INVESTOR DECIDES TO INVEST IN REAL ESTATE. ''And The Five C’s of Credit: Capacity, Capital, Collateral, Conditions and Character.'' :'' EARNED INCOME , PASSIVE INCOME, PORTFOLIO INCOME, RESIDUAL INCOME.-'' |
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of every dollar. 8 Reasons to get pre-qualified for a mortgage loan!
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of an estate to maximize the goals of the estate owner to avoid probate, to lower the tax?
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Protection Vehicles;
Many different strategies have been developed over the years claiming to protect assets.
How to protect yourself from...?
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Long-Term Investor
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LEARN ABOUT: Top 6 Biggest U.S. Government Financial Bailouts In History!
2-LEARN ABOUT MARKET CRASHES HISTORY. HOW AND WHEN?
3-LEARN ABOUT: THE UNITED STATE, AND THE WORLD MOST IMPORTANT FINANCIAL
INSTITUTIONS!
4-LEARN ABOUT THE COMPLETE FINANCIAL TURMOIL, THE CREDIT CRISIS!
BANKING & FINANCE / Knowledge Financial.com; an educational, a life changing website
with great ideas of small business, with important things to know about our economy, and
investment
INVESTMENT: MAKE YOURSELF RICHER BY INVESTING THE RIGHT WAY IN THE RIGHT
PRODUCTS. REAL ESTATE INVESTMENTS CAN HELP
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INDUSTRIES HAS THOUSANDS OF COMPANIES TO BUY STOCKS FROM.
FOREX MARKET: THE LARGEST MARKET IN THE WORLD TO INVEST AND GET RICHER IF YOU
USE THE RIGHT TOOL.
TAX CERTIFICATES: / TAX DEED: A BETTER WAY TO INVEST MONEY AND GET RICHER.
TAX LIENS: How Can You Safely Earn 18% to 240% Per Year On Your Investments? Yes you
can... By investing in Government Issued Tax Liens, Tax deed, Tax Certificates.
REITs: REIT: Real Estate Investment Trust. A GREAT WAY TO INVEST IN REAL ESTATE
WITHOUT TAKING A MORTGAGE LOAN
COMMERCIAL INVESTMENT. COMMERCIAL REAL ESTATE; A BETTER WAY TO INVEST AND
GET RICHER! MULTI-WAYS TO WIN BIG IN REAL ESTATE. WHAT IS COMMERCIAL REAL
ESTATE?
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REACH. WHAT ARE 401K, ROTH 401K, INDIVIDUAL 401K, 403B, 457 PLAN, THRIFT SAVINGS
PLAN.
IDENTITY THEFT: WATCH OUT, STOP IT FROM HAPPENING, GET THE TOOLS YOU NEED TO
PREVENT IT RIGHT HERE! AT KNOWLEDGE FINANCIAL.COM
INSURANCE 101: THE IMPORTANCE OF INSURANCE IN SOMEONE'S LIFE.
EVERYTHING YOU NEED TO KNOW ABOUT INSURANCE; NOW IS YOUR CHANCE TO KNOW
HOW TO SAVE MONEY ON YOUR INSURANCE! LEARN ABOUT THE 15 INSURANCE POLICIES
YOU DON'T NEED!
PERSONAL FINANCE. What are you doing with your money in the wake of the financial
crisis? --- Where is the safe place to put money? My personal finance!
FINANCIAL FREEDOM: A SMARTEST WAY TO PREPARE A BETTER FUTURE. Money-Making
Information You'll Need to Succeed
US ECONOMY, THE FINANCIAL SYSTEM, THE CREDIT MARKET. WHAT'S GOING?
MONEY MANAGEMENT. Ten Resolutions to Make Your Financial Life Easier
FINANCE: THE BANKING AND THE AMERICAN FINANCIAL SYSTEM HISTORY, SUCCESS AND
FAILURE
SAVING MONEY: THE SECRETS OF SAVING; WAYS TO SAVE A LOT OF MONEY AND GETTING
RICHER
IRA / INDIVIDUAL RETIREMENT ACCOUNT. What is an IRA? And what does it matter?
SOCIAL SECURITY; THE ULTIMATE RETIREMENT GUIDE. HOW DOES SOCIAL SECURITY
WORK?
FINANCIAL REPORT: How to bring your spending under control, so that you get the most out
of every dollar. 8 Reasons to get pre-qualified for a mortgage loan!
ESTATE PLANNING: Estate planning, is it really the process of accumulating and disposing
of an estate to maximize the goals of the estate owner to avoid probate, to lower the tax?
Assets Protection: Don't Get Sued: Five Tips To Protect Your Company! Types of Asset-
Protection Vehicles;
Many different strategies have been developed over the years claiming to protect assets.
How to protect yourself from...?
BUILDING WEALTH! How to Become Wealthy?
Nine Truths That Can Set You on the Path to Financial Freedom
FINANCIAL KNOWLEDGE: The Successful Investment Journey, Ten Tips For The Successful
Long-Term Investor
FINANCIAL SYSTEM: AMERICA’S MONEY CRISIS / Bailout 101.
LEARN ABOUT: Top 6 Biggest U.S. Government Financial Bailouts In History!
2-LEARN ABOUT MARKET CRASHES HISTORY. HOW AND WHEN?
3-LEARN ABOUT: THE UNITED STATE, AND THE WORLD MOST IMPORTANT FINANCIAL
INSTITUTIONS!
4-LEARN ABOUT THE COMPLETE FINANCIAL TURMOIL, THE CREDIT CRISIS!
BANKING & FINANCE / Knowledge Financial.com; an educational, a life changing website
with great ideas of small business, with important things to know about our economy, and
investment
INVESTMENT: MAKE YOURSELF RICHER BY INVESTING THE RIGHT WAY IN THE RIGHT
PRODUCTS. REAL ESTATE INVESTMENTS CAN HELP
STOCK MARKET: STOCK MARKET A WAY TO INVEST AND MULTIPLY YOUR PROFITS. THESE
INDUSTRIES HAS THOUSANDS OF COMPANIES TO BUY STOCKS FROM.
FOREX MARKET: THE LARGEST MARKET IN THE WORLD TO INVEST AND GET RICHER IF YOU
USE THE RIGHT TOOL.
TAX CERTIFICATES: / TAX DEED: A BETTER WAY TO INVEST MONEY AND GET RICHER.
TAX LIENS: How Can You Safely Earn 18% to 240% Per Year On Your Investments? Yes you
can... By investing in Government Issued Tax Liens, Tax deed, Tax Certificates.
REITs: REIT: Real Estate Investment Trust. A GREAT WAY TO INVEST IN REAL ESTATE
WITHOUT TAKING A MORTGAGE LOAN
COMMERCIAL INVESTMENT. COMMERCIAL REAL ESTATE; A BETTER WAY TO INVEST AND
GET RICHER! MULTI-WAYS TO WIN BIG IN REAL ESTATE. WHAT IS COMMERCIAL REAL
ESTATE?
PENSION PLANS: THE ULTIMATE RETIREMENT GUIDE; HOW TO RETIRE EARLY AND RETIRE
REACH. WHAT ARE 401K, ROTH 401K, INDIVIDUAL 401K, 403B, 457 PLAN, THRIFT SAVINGS
PLAN.
IDENTITY THEFT: WATCH OUT, STOP IT FROM HAPPENING, GET THE TOOLS YOU NEED TO
PREVENT IT RIGHT HERE! AT KNOWLEDGE FINANCIAL.COM
INSURANCE 101: THE IMPORTANCE OF INSURANCE IN SOMEONE'S LIFE.
EVERYTHING YOU NEED TO KNOW ABOUT INSURANCE; NOW IS YOUR CHANCE TO KNOW
HOW TO SAVE MONEY ON YOUR INSURANCE! LEARN ABOUT THE 15 INSURANCE POLICIES
YOU DON'T NEED!
Real Estate Investment, Home-Buying Guide, Home-Selling Guide, Mortgage Loan
Modification to Avoid Foreclosure, Home Refinancing Since Interest Rate has
Dropped to the bottom low, Real Estate Financing No Matter what you from the news
you still can purchase, Begin buying process with Mortgage Pre-Qualification.
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REAL ESTATE INVESTMENT GLOSSARY, TERMS AND TERMINOLOGY
MOBILE HOMES: Manufactured Homes, Mobile Homes, an Affordable Housing
Alternative
Modification to Avoid Foreclosure, Home Refinancing Since Interest Rate has
Dropped to the bottom low, Real Estate Financing No Matter what you from the news
you still can purchase, Begin buying process with Mortgage Pre-Qualification.
IF YOU NEED HELP TO BUY OR TO SELL A PROPERTY IN SOUTH
FLORIDA ; LET A PROFESSIONAL LICENSED REALTOR & LICENSED
MORTGAGE BROKER ASSIST YOU.
SOUTH FL. CONTACT ANTONY
AT:
Real Estate For Sale, Commercial Real Estate, Miami Real Estate, Mobile Home,
Florida Real Estate
BUY ALL YOU WANT RIGHT HERE; THE BEST QUALITY PRODUCTS FROM THE WORLD
GREATEST COMPANIES AT
DISCOUNT PRICE. BARGAIN, BARGAIN!
Real Estate is a road-map to riches, it’s one of the way to build wealth. The ultra rich
always invest in real estate. There is no better
investment than real estate despites the ups and downs, it outperformed all other
investments. Real Estate is nothing but a passport to wealth
HOME-BUYING: Now is a Great Time to buy Luxury Condos, Houses, Town-homes,
Waterfront Properties Below Market Value. Many Choices, Low Interest rates, All
Sale Prices are negotiable
REO-REAL ESTATE OWNED FORECLOSURE. Buying Bank Owned Properties (REO) ---
Investing in Foreclosed Real Estate for a Higher Return.
REIT: Real Estate Investment Trust. A GREAT WAY TO INVEST IN REAL ESTATE
WITHOUT TAKING A MORTGAGE LOAN
REAL ESTATE INVESTMENT GLOSSARY, TERMS AND TERMINOLOGY
MOBILE HOMES: Manufactured Homes, Mobile Homes, an Affordable Housing
Alternative
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Did you know that you have three credit reports, and these credit reports are
not necessarily the same. Obtain your free report now...
Real Estate general information center... Everything about Real Estate.
Mortgage Loans Learning Center. Full and complete financing information to
succeed...
Five Insurance Policies Everyone Should Have...
Protecting your most important assets is an important step in creating a solid
personal financial plan.
. INSURANCE: WAYS TO MAKE MONEY & SAVE MONEY ON YOUR INSURANCE. 15
Insurance Policies You may not Need...
CREDIT: SAVE YOUR CREDIT, RESCUE IT, PROTECT IT, INCREASE YOUR SCORE.
WE HAVE VALUABLE INFORMATION TO HELP YOU. CREDIT HELP: CHECK US OUT!
CREATIVE FINANCING: TOP 10 CREATIVE FINANCING TECHNIQUES AND
STRATEGIES TO FIND MONEY TO INVEST!
INVESTMENT: MAKE YOURSELF RICHER BY INVESTING THE RIGHT WAY IN THE RIGHT
PRODUCTS
FORTUNE MAKER: WHERE AND HOW?... Before You Invest, Before undertaking any
investment program, it is critical that you know this...!
Capital gains tax, Understanding Capital Gains Taxes, Real Estate Capital Gains Tax
General Tax Information: TAX SAVING, TAX HELP: What to do if you Can’t Pay your Tax Bill?
How to Cut Your Property Taxes...
COUNTY, MONROE
COUNTY, PALM BEACH COUNTY, STATE OF FLORIDA AND THE U.S. FEDERAL
GOVERNMENT. LEARN MORE HERE...
You name it, You get it
You need it, You find
You want it, Search for it!
FREE FINANCIAL ADVICE. WAYS TO SAVE MONEY, TO MAKE MONEY, AND GET OUT OF
DEBT!
Consumer information, resources and important tools about credit, banking, finance,
economy,
ID-THEFT
Real Estate Assistance Program For Home-Buyers & sellers
FREE CREDIT REPORT
Did you know that you have three credit reports, and these credit reports are
not necessarily the same. Obtain your free report now...
Real Estate general information center... Everything about Real Estate.
Mortgage Loans Learning Center. Full and complete financing information to
succeed...
Five Insurance Policies Everyone Should Have...
Protecting your most important assets is an important step in creating a solid
personal financial plan.
. INSURANCE: WAYS TO MAKE MONEY & SAVE MONEY ON YOUR INSURANCE. 15
Insurance Policies You may not Need...
CREDIT: SAVE YOUR CREDIT, RESCUE IT, PROTECT IT, INCREASE YOUR SCORE.
WE HAVE VALUABLE INFORMATION TO HELP YOU. CREDIT HELP: CHECK US OUT!
CREATIVE FINANCING: TOP 10 CREATIVE FINANCING TECHNIQUES AND
STRATEGIES TO FIND MONEY TO INVEST!
INVESTMENT: MAKE YOURSELF RICHER BY INVESTING THE RIGHT WAY IN THE RIGHT
PRODUCTS
FORTUNE MAKER: WHERE AND HOW?... Before You Invest, Before undertaking any
investment program, it is critical that you know this...!
Capital gains tax, Understanding Capital Gains Taxes, Real Estate Capital Gains Tax
General Tax Information: TAX SAVING, TAX HELP: What to do if you Can’t Pay your Tax Bill?
How to Cut Your Property Taxes...
-- SOUTH FLORIDA REAL ESTATE INVESTMENTS. ---
FIVE IMPORTANT THINGS EVERY REAL ESTATE INVESTOR SHOULD KNOW ABOUT?...
ATTENTION, ATTENTION HOME-BUYERS AND SELLERS...
--- REAL ESTATE INVESTMENTS: WHY INVESTING IN REAL ESTATE TODAY IS A GOOD IDEA
FOR FIRST TIME HOME-BUYERS AND FOR EVERYONE?
---... Federal Housing Administration {FHA} Mortgage Loan Programs Information Center.
Help for America's Homeowners! How to make your home affordable?
--- ...REAL ESTATE ADVANTAGE AND GREAT OPPORTUNITY FOR FIRST TIME HOME-
BUYERS IN SOUTH FLORIDA! ———
-- FIRST TIME HOME-BUYERS. METHODS, TECHNIQUES, AND STRATEGIES TO SUCCEED --
THE MOST IMPORTANT INFORMATION FOR FIRST TIME BUYERS...
--- INVESTMENT GENERAL KNOWLEDGE AND FINANCING STRATEGY...
INVEST NOW AND GET RICHER LATER. INVEST YOUR MONEY TODAY AND GET RICHER
TOMORROW
--- REAL ESTATE FINANCING: WHERE AND HOW TO FIND MONEY TO INVEST IN REAL
ESTATE?
Bringing the Dream of Home-ownership Within Reach... THE DREAM NOW CAN BECOME A
REALITY.
--- SOUTH FLORIDA REAL ESTATE INVESTMENTS. ---
FIVE IMPORTANT THINGS EVERY REAL ESTATE INVESTOR SHOULD KNOW ABOUT?...
ATTENTION, ATTENTION HOME-BUYERS AND SELLERS...
--- NSP --- Neighborhood Stabilization Program
Neighborhood Stabilization Program: HUD's new Neighborhood Stabilization Program
provides emergency assistance to state and local governments to...
---... HOME-BUYER'S TAX CREDIT, ASSISTANCE WITH DOWN-PAYMENT AND CLOSING
COST. {FLHOP} FLORIDA HOUSING OPPORTUNITY PROGRAM. Utilizing home buyer tax
credit to assist at closing
--- What are the advantages of commercial property investment?
--- REAL ESTATE ADVANTAGE AND GREAT OPPORTUNITY FOR EVERYONE. LEARN MORE...
--- How to Step Up and Build Wealth by Investing in Commercial Real Estate?
FIVE IMPORTANT THINGS EVERY REAL ESTATE INVESTOR SHOULD KNOW ABOUT?...
ATTENTION, ATTENTION HOME-BUYERS AND SELLERS...
--- REAL ESTATE INVESTMENTS: WHY INVESTING IN REAL ESTATE TODAY IS A GOOD IDEA
FOR FIRST TIME HOME-BUYERS AND FOR EVERYONE?
---... Federal Housing Administration {FHA} Mortgage Loan Programs Information Center.
Help for America's Homeowners! How to make your home affordable?
--- ...REAL ESTATE ADVANTAGE AND GREAT OPPORTUNITY FOR FIRST TIME HOME-
BUYERS IN SOUTH FLORIDA! ———
-- FIRST TIME HOME-BUYERS. METHODS, TECHNIQUES, AND STRATEGIES TO SUCCEED --
THE MOST IMPORTANT INFORMATION FOR FIRST TIME BUYERS...
--- INVESTMENT GENERAL KNOWLEDGE AND FINANCING STRATEGY...
INVEST NOW AND GET RICHER LATER. INVEST YOUR MONEY TODAY AND GET RICHER
TOMORROW
--- REAL ESTATE FINANCING: WHERE AND HOW TO FIND MONEY TO INVEST IN REAL
ESTATE?
Bringing the Dream of Home-ownership Within Reach... THE DREAM NOW CAN BECOME A
REALITY.
--- SOUTH FLORIDA REAL ESTATE INVESTMENTS. ---
FIVE IMPORTANT THINGS EVERY REAL ESTATE INVESTOR SHOULD KNOW ABOUT?...
ATTENTION, ATTENTION HOME-BUYERS AND SELLERS...
--- NSP --- Neighborhood Stabilization Program
Neighborhood Stabilization Program: HUD's new Neighborhood Stabilization Program
provides emergency assistance to state and local governments to...
---... HOME-BUYER'S TAX CREDIT, ASSISTANCE WITH DOWN-PAYMENT AND CLOSING
COST. {FLHOP} FLORIDA HOUSING OPPORTUNITY PROGRAM. Utilizing home buyer tax
credit to assist at closing
--- What are the advantages of commercial property investment?
--- REAL ESTATE ADVANTAGE AND GREAT OPPORTUNITY FOR EVERYONE. LEARN MORE...
--- How to Step Up and Build Wealth by Investing in Commercial Real Estate?
..RICH GUIDE, WHY AREN'T RICH?
BUILDING FINANCIAL WEALTH, OBTAIN FINANCIAL FREEDOM, BECOME A RICH PERSON;
YES YOU CAN...
..RULE OF 72: The compound interest and financial success. Rule Of 72 is the most
important and simple rule of financial success.
..MILLIONAIRE: How To Make Your First $1 Million? The Millionaire's Mindset
..FORTUNE: BEFORE INVESTING IN THE STOCK MARKET LEARN THIS FIRST!...
..GOVERNMENT: Government's general information; Local, State, and Federal.
Housing Finance Authority of Miami dade, Monroe, Broward, and Palm Beach County
..EMPIRE: THE ABC's OF INVESTMENTS, Ways to Save. THE TRIANGLE OF SUCCESS...
..INVESTORS: CREATIVE FINANCING:
TOP 10 CREATIVE FINANCING TECHNIQUES AND STRATEGIES TO FIND MONEY TO INVEST!
The Five C’s of Credit: LEARN MORE..
CREATIVE FINANCE CAN AND WILL MAKE ALL THE DIFFERENCE WHEN AN INVESTOR
DECIDES TO INVEST IN REAL ESTATE...
..HOME INSPECTION: HOW TO GET THE BEST OUT OF IT..
Top 10 home-buying mistakes to avoid!
HOW TO USE HOME INSPECTION REPORTS TO NEGOTIATE SALE PRICE?...
...ACCOUNTING: The Basics of Accounting...
...TAXES: THE FUNDAMENTAL OF TAXES. THE MORE YOU KNOW, THE LESS YOU PAY...
...ANALYTICS: Top 9 Real Estate Financial Calculator Problems every investors should
know about...
...REAL ESTATE MARKET: TODAY'S GREAT DEALS FOR FIRST-TIME HOME-
BUYERS & FOR EVERYONE AS NEVER SEEN BEFORE! WONDERFUL
OPPORTUNITY TO CREATE TREMENDOUS AMOUNT OF WEALTH...
BUILDING FINANCIAL WEALTH, OBTAIN FINANCIAL FREEDOM, BECOME A RICH PERSON;
YES YOU CAN...
..RULE OF 72: The compound interest and financial success. Rule Of 72 is the most
important and simple rule of financial success.
..MILLIONAIRE: How To Make Your First $1 Million? The Millionaire's Mindset
..FORTUNE: BEFORE INVESTING IN THE STOCK MARKET LEARN THIS FIRST!...
..GOVERNMENT: Government's general information; Local, State, and Federal.
Housing Finance Authority of Miami dade, Monroe, Broward, and Palm Beach County
..EMPIRE: THE ABC's OF INVESTMENTS, Ways to Save. THE TRIANGLE OF SUCCESS...
..INVESTORS: CREATIVE FINANCING:
TOP 10 CREATIVE FINANCING TECHNIQUES AND STRATEGIES TO FIND MONEY TO INVEST!
The Five C’s of Credit: LEARN MORE..
CREATIVE FINANCE CAN AND WILL MAKE ALL THE DIFFERENCE WHEN AN INVESTOR
DECIDES TO INVEST IN REAL ESTATE...
..HOME INSPECTION: HOW TO GET THE BEST OUT OF IT..
Top 10 home-buying mistakes to avoid!
HOW TO USE HOME INSPECTION REPORTS TO NEGOTIATE SALE PRICE?...
...ACCOUNTING: The Basics of Accounting...
...TAXES: THE FUNDAMENTAL OF TAXES. THE MORE YOU KNOW, THE LESS YOU PAY...
...ANALYTICS: Top 9 Real Estate Financial Calculator Problems every investors should
know about...
...REAL ESTATE MARKET: TODAY'S GREAT DEALS FOR FIRST-TIME HOME-
BUYERS & FOR EVERYONE AS NEVER SEEN BEFORE! WONDERFUL
OPPORTUNITY TO CREATE TREMENDOUS AMOUNT OF WEALTH...
BUY AND SALE HOMES AT
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..The Twelve Federal Reserve Districts... LEARN MORE ABOUT THEM...
..FDIC: FEDERAL INSURANCE CORPORATION, LEARN MORE ABOUT THIS GREAT
INSTITUTION...
..Board of Governors of the feral Reserve System. ...WHAT THEY DO?
Influences money and credit conditions in the U.S., supervises and regulates
banking, maintains the stability of the financial system, and provides certain ...
Securities and Exchange Commission (SEC)
U.S. Securities and Exchange Commission: official Federal Agency website,
including news, legal and other releases and reports, investor education material,
and the
..US Department of the Treasury. Learn More...
..UNITED STATES Treasury Securities & Programs... This is where you can invest
your money with US Government. Treasury Direct Investment Programs...
U.S. Treasury securities are a great way to invest and save for the future. Here,
you'll find overviews regarding U.S. Treasury bonds, notes, bills, and TIPS....
Top 6 Biggest U.S. Government Financial Bailouts In History!
The passage into U.S. law on October 3, 2008, of the $700 billion financial-sector
rescue plan is the latest in the long history of U.S. government bailouts that go back
to the Panic of 1792,
when the federal government bailed out the 13 United States, which were
over-burdened by their debt from the Revolutionary War
Internal Revenue Service [IRS] Tax Information For Businesses....
IRS: Tax Information for Individuals...
IRS: Tax Information for Tax Professionals...
IRS: How to Contact the IRS... KNOWLEDGEFINANCIAL.COM
IRS: Frequently Asked Tax Questions and Answers. You Have Questions, IRS Has the
ANSWERS???
United States Department of Commerce...
KNOWLEDGEFINANCIAL.COM
..The Twelve Federal Reserve Districts... LEARN MORE ABOUT THEM...
..FDIC: FEDERAL INSURANCE CORPORATION, LEARN MORE ABOUT THIS GREAT
INSTITUTION...
..Board of Governors of the feral Reserve System. ...WHAT THEY DO?
Influences money and credit conditions in the U.S., supervises and regulates
banking, maintains the stability of the financial system, and provides certain ...
Securities and Exchange Commission (SEC)
U.S. Securities and Exchange Commission: official Federal Agency website,
including news, legal and other releases and reports, investor education material,
and the
..US Department of the Treasury. Learn More...
..UNITED STATES Treasury Securities & Programs... This is where you can invest
your money with US Government. Treasury Direct Investment Programs...
U.S. Treasury securities are a great way to invest and save for the future. Here,
you'll find overviews regarding U.S. Treasury bonds, notes, bills, and TIPS....
Top 6 Biggest U.S. Government Financial Bailouts In History!
The passage into U.S. law on October 3, 2008, of the $700 billion financial-sector
rescue plan is the latest in the long history of U.S. government bailouts that go back
to the Panic of 1792,
when the federal government bailed out the 13 United States, which were
over-burdened by their debt from the Revolutionary War
Internal Revenue Service [IRS] Tax Information For Businesses....
IRS: Tax Information for Individuals...
IRS: Tax Information for Tax Professionals...
IRS: How to Contact the IRS... KNOWLEDGEFINANCIAL.COM
IRS: Frequently Asked Tax Questions and Answers. You Have Questions, IRS Has the
ANSWERS???
United States Department of Commerce...
WELCOME TO: KNOWLEDGEFINANCIALGROUP.COM
Portfolio Income // What Is Portfolio Income?
Portfolio is a financial term denoting a collection of investments held by an
investment company, financial institution or individual
The term portfolio refers to any collection of financial assets such as stocks, bonds,
and cash.
Portfolios may be held by individual investors and/or managed by financial
professionals, hedge funds, banks and other financial institutions.
It is a generally accepted principle that a portfolio is designed according to the
investor's risk tolerance, time frame and investment objectives
Dividends // INVEST IN STOCKS WHO PAY DIVIDENDS'-
When you own stock, you will often receive dividends when those companies earn
money. These dividends are considered portfolio income.
DIVIDEND INCOME // INVEST IN MUTUAL FUNDS'-
Dividends are payments made by a corporation to its shareholder members. It is the
portion of corporate profits paid out to stockholders.[1] When a corporation earns a
profit or surplus, that money can be put to two uses: it can either be re-invested in
the business (called retained earnings), or it can be distributed to shareholders.
There are two ways to distribute cash to shareholders: share repurchases or
dividends.[2][3] Many corporations retain a portion of their earnings and pay the
remainder as a dividend.
Dividends Forms of payment
Cash dividends (most common) are those paid out in currency, usually via electronic
funds transfer or a printed paper check. Such dividends are a form of investment
income and are usually taxable to the recipient in the year they are paid. This is the
most common method of sharing corporate profits with the shareholders of the
company. For each share owned, a declared amount of money is distributed. Thus, if
a person owns 100 shares and the cash dividend is USD $0.50 per share, the holder
of the stock will be paid USD $50. Dividends paid
A dividend is allocated as a fixed amount per share. Therefore, a shareholder
receives a dividend in proportion to their shareholding.
Dividend Dates
Any dividend that is declared must be approved by a company's Board of Directors
before it is paid. For public companies, there are four important dates to remember
regarding dividends. These are discussed in detail with examples at the Securities
and Exchange Commission site [1]
Declaration date is the day the Board of Directors announces its intention to
pay a dividend. On this day, a liability is created and the company records that
liability on its books; it now owes the money to the stockholders. On the declaration
date, the Board will also announce a date of record and a payment date.
In-dividend date is the last day, which is one trading day before the ex-dividend
date, where the stock is said to be cum dividend ('with [including] dividend'). In
other words, existing holders of the stock and anyone who buys it on this day will
receive the dividend,
Ex-dividend date (typically 2 trading days before the record date for U.S.
securities) is the day on which all shares bought and sold no longer come
attached with the right to be paid the most recently declared dividend.
This is an important date for any company that has many stockholders, including
those that trade on exchanges, as it makes reconciliation of who is to be paid the
dividend easier. Existing holders of the stock will receive the dividend even if they
now sell the stock, whereas anyone who now buys the stock will not receive the
dividend.
Interest // INVEST IN BONDS TO GET INTEREST'-
Lending money to borrowers through savings accounts, certificates of deposit and
peer lending all gain interest, which is portfolio income.
Taxes
Portfolio income must be reported to the Internal Revenue
Service (IRS) and is taxed as active income, just like wages in
a job.
It cannot be deducted to offset losses in passive income
because the only types of income the IRS considers to be
passive are "rental activity or a business in which the
taxpayer does not materially participate" into which category
portfolio income does not fall.
Portfolio is a financial term denoting a collection of investments held by an
investment company, financial institution or individual
The term portfolio refers to any collection of financial assets such as stocks, bonds,
and cash.
Portfolios may be held by individual investors and/or managed by financial
professionals, hedge funds, banks and other financial institutions.
It is a generally accepted principle that a portfolio is designed according to the
investor's risk tolerance, time frame and investment objectives
Dividends // INVEST IN STOCKS WHO PAY DIVIDENDS'-
When you own stock, you will often receive dividends when those companies earn
money. These dividends are considered portfolio income.
DIVIDEND INCOME // INVEST IN MUTUAL FUNDS'-
Dividends are payments made by a corporation to its shareholder members. It is the
portion of corporate profits paid out to stockholders.[1] When a corporation earns a
profit or surplus, that money can be put to two uses: it can either be re-invested in
the business (called retained earnings), or it can be distributed to shareholders.
There are two ways to distribute cash to shareholders: share repurchases or
dividends.[2][3] Many corporations retain a portion of their earnings and pay the
remainder as a dividend.
Dividends Forms of payment
Cash dividends (most common) are those paid out in currency, usually via electronic
funds transfer or a printed paper check. Such dividends are a form of investment
income and are usually taxable to the recipient in the year they are paid. This is the
most common method of sharing corporate profits with the shareholders of the
company. For each share owned, a declared amount of money is distributed. Thus, if
a person owns 100 shares and the cash dividend is USD $0.50 per share, the holder
of the stock will be paid USD $50. Dividends paid
A dividend is allocated as a fixed amount per share. Therefore, a shareholder
receives a dividend in proportion to their shareholding.
Dividend Dates
Any dividend that is declared must be approved by a company's Board of Directors
before it is paid. For public companies, there are four important dates to remember
regarding dividends. These are discussed in detail with examples at the Securities
and Exchange Commission site [1]
Declaration date is the day the Board of Directors announces its intention to
pay a dividend. On this day, a liability is created and the company records that
liability on its books; it now owes the money to the stockholders. On the declaration
date, the Board will also announce a date of record and a payment date.
In-dividend date is the last day, which is one trading day before the ex-dividend
date, where the stock is said to be cum dividend ('with [including] dividend'). In
other words, existing holders of the stock and anyone who buys it on this day will
receive the dividend,
Ex-dividend date (typically 2 trading days before the record date for U.S.
securities) is the day on which all shares bought and sold no longer come
attached with the right to be paid the most recently declared dividend.
This is an important date for any company that has many stockholders, including
those that trade on exchanges, as it makes reconciliation of who is to be paid the
dividend easier. Existing holders of the stock will receive the dividend even if they
now sell the stock, whereas anyone who now buys the stock will not receive the
dividend.
Interest // INVEST IN BONDS TO GET INTEREST'-
Lending money to borrowers through savings accounts, certificates of deposit and
peer lending all gain interest, which is portfolio income.
Taxes
Portfolio income must be reported to the Internal Revenue
Service (IRS) and is taxed as active income, just like wages in
a job.
It cannot be deducted to offset losses in passive income
because the only types of income the IRS considers to be
passive are "rental activity or a business in which the
taxpayer does not materially participate" into which category
portfolio income does not fall.
Capital Gains // INVEST IN HIGH QUALITY STOCKS FOR GAINS'-
Another form of portfolio income is capital gains, money earned through
the sale of an asset such as an investment property, shares of stock and
mutual funds, bonds.
'Capital Gain'
1. An increase in the value of a capital asset (investment or real estate)
that gives it a higher worth than the purchase price. The gain is not
realized until the asset is sold. A capital gain may be short term (one year
or less) or long term (more than one year) and must be claimed on income
taxes. A capital loss is incurred when there is a decrease in the capital
asset value compared to an asset's purchase price.
2. Profit that results when the price of a security held by a mutual fund
rises above its purchase price and the security is sold (realized gain). If
the security continues to be held, the gain is unrealized. A capital loss
would occur when the opposite takes place.
KNOWLEDGEFINANCIALGROUP.COM explains 'Capital Gain'
1. Long-term capital gains are usually taxed at a lower rate than
regular income. This is done to encourage entrepreneurship and
investment in the economy.
Tax conscious mutual fund investors should determine a mutual fund's
unrealized accumulated capital gains, which are expressed as a
percentage of its net assets, before investing in a fund with a significant
unrealized capital gain component. This circumstance is referred to as a
fund's capital gains exposure. When distributed by a fund, capital gains are
a taxable obligation for the fund's investors.
Capital gains tax // INVEST IN QUALITY REIT'S, REIT'S TO GET THE GAINS
A capital gains tax (CGT) is a tax on capital gains, the profit realized on the
sale of a non-inventory asset that was purchased at a cost amount that was
lower than the amount realized on the sale. The most common capital gains
are realized from the sale of stocks, bonds, precious metals and property.
Not all countries implement a capital gains tax and most have different
rates of taxation for individuals and corporations
Another form of portfolio income is capital gains, money earned through
the sale of an asset such as an investment property, shares of stock and
mutual funds, bonds.
'Capital Gain'
1. An increase in the value of a capital asset (investment or real estate)
that gives it a higher worth than the purchase price. The gain is not
realized until the asset is sold. A capital gain may be short term (one year
or less) or long term (more than one year) and must be claimed on income
taxes. A capital loss is incurred when there is a decrease in the capital
asset value compared to an asset's purchase price.
2. Profit that results when the price of a security held by a mutual fund
rises above its purchase price and the security is sold (realized gain). If
the security continues to be held, the gain is unrealized. A capital loss
would occur when the opposite takes place.
KNOWLEDGEFINANCIALGROUP.COM explains 'Capital Gain'
1. Long-term capital gains are usually taxed at a lower rate than
regular income. This is done to encourage entrepreneurship and
investment in the economy.
Tax conscious mutual fund investors should determine a mutual fund's
unrealized accumulated capital gains, which are expressed as a
percentage of its net assets, before investing in a fund with a significant
unrealized capital gain component. This circumstance is referred to as a
fund's capital gains exposure. When distributed by a fund, capital gains are
a taxable obligation for the fund's investors.
Capital gains tax // INVEST IN QUALITY REIT'S, REIT'S TO GET THE GAINS
A capital gains tax (CGT) is a tax on capital gains, the profit realized on the
sale of a non-inventory asset that was purchased at a cost amount that was
lower than the amount realized on the sale. The most common capital gains
are realized from the sale of stocks, bonds, precious metals and property.
Not all countries implement a capital gains tax and most have different
rates of taxation for individuals and corporations
Ten Important Facts About Capital Gains and
Losses
1.Almost everything you own and use for personal purposes, pleasure or
investment is a capital asset.
2.When you sell a capital asset, the difference between the amount you sell it
for and your basis – which is usually what you paid for it – is a capital gain or a
capital loss.
3.You must report all capital gains.
4.You may deduct capital losses only on investment property, not on property
held for personal use.
5.Capital gains and losses are classified as long-term or short-term,
depending on how long you hold the property before you sell it. If you hold it
more than one year, your capital gain or loss is long-term. If you hold it one
year or less, your capital gain or loss is short-term.
If you have long-term gains in excess of your long-term losses, you have a net
capital gain to the extent your net long-term capital gain is more than your net
short-term capital loss, if any.
9.If your total net capital loss is more than the yearly limit on capital loss
deductions, you can carry over the unused part to the next year and treat it as
if you incurred it in that next year.
10.Capital gains and losses are reported on Schedule D, Capital Gains and
Losses
Losses
1.Almost everything you own and use for personal purposes, pleasure or
investment is a capital asset.
2.When you sell a capital asset, the difference between the amount you sell it
for and your basis – which is usually what you paid for it – is a capital gain or a
capital loss.
3.You must report all capital gains.
4.You may deduct capital losses only on investment property, not on property
held for personal use.
5.Capital gains and losses are classified as long-term or short-term,
depending on how long you hold the property before you sell it. If you hold it
more than one year, your capital gain or loss is long-term. If you hold it one
year or less, your capital gain or loss is short-term.
If you have long-term gains in excess of your long-term losses, you have a net
capital gain to the extent your net long-term capital gain is more than your net
short-term capital loss, if any.
9.If your total net capital loss is more than the yearly limit on capital loss
deductions, you can carry over the unused part to the next year and treat it as
if you incurred it in that next year.
10.Capital gains and losses are reported on Schedule D, Capital Gains and
Losses
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Most-Overlooked Tax Deductions
Don't let a knowledge gap prevent you from taking advantage of these money-saving tax
breaks. // KNOWLEDGEFINANCIALGROUP.COM
92 million taxpayers claim about $700 billion worth using standard deductions -- and some of
you who take the easy way out probably shortchange yourselves. (If you turned 65 in 2012,
remember that you now deserve a bigger standard deduction than when you were younger.)
Yes, friends, tax time is a dangerous time. It's all too easy to miss a trick and pay too much.
Years ago, the fellow who ran the IRS at the time that he figured millions of taxpayers overpay
their taxes every year by overlooking just one of the money-savers listed below.
The right for taxpayers to deduct state sales taxes paid expired at the end of 2011. Everyone
expected Congress to revive the tax break sometime during 2012, but the issue got tangled up
in fiscal cliff negotiations. Finally, in the bill approved January 1, 2013, the deduction was
restored ... retroactively for 2012 and for 2013 returns that will be filed next year.
KNOWLEDGEFINANCIALGROUP.COM
Sales tax or and State incometax
This is particularly important to you if you live in a state that does not impose a state income
tax. You see, Congress offers you the choice between deducting state income taxes paid or
state sales taxes paid. You choose whichever gives you the largest deduction, of course, and if
your state doesn't have an income tax, the sales tax write-off is clearly the way to go.
The IRS has tables that show how much residents of various states can deduct, based on their
income and state and local sales tax rates. But the tables aren't the last word. If you purchased
a vehicle, boat or airplane, you may add the sales tax you paid on that big-ticket item to the
amount shown in the IRS table for your state.
The same goes for any homebuilding materials you purchased. These add-on items are easy to
overlook, but could make the sales-tax deduction a better deal even if you live in a state with an
income tax.
If, like most investors, your mutual fund dividends are automatically used to buy extra shares,
remember that each reinvestment increases your tax basis in the fund. That, in turn, reduces
the taxable capital gain (or increases the tax-saving loss) when you redeem shares. Forgetting
to include the reinvested dividends in your basis results in double taxation of the dividends --
once when they were paid out and immediately reinvested in more shares and later when
they're included in the proceeds of the sale. Don't make that costly mistake.
KNOWLEDGEFINANCIALGROUP.COM
Investments
If you're not sure what your basis is, ask the fund for help. (Starting with sales in 2012, mutual
funds must report to investors -- and the IRS -- the tax basis of shares redeemed during the
year. But note this: The new rule applies only to shares purchased in 2012 and later years. If you
redeemed shares you purchased prior to 2012, it's still up to you to figure your basis. Don't
forget those reinvested dividends!)
Out-of-pocket charitable contributions
It's hard to overlook the big charitable gifts you made during the year, by check or payroll
deduction (check your December pay stub).
But the little things add up, too, and you can write off out-of-pocket costs incurred while doing
work for a charity. For example, ingredients for casseroles you prepare for a nonprofit
organization's soup kitchen and stamps you buy for your school's fundraising mailing count as
a charitable contribution. Keep your receipts and if your contribution totals more than $250,
you'll need an acknowledgement from the charity documenting the support you provided. If you
drove your car for charity in 2012, remember to deduct 14 cents per mile plus parking and tolls
paid in your philanthropic journeys.
Student-loan interest paid by Mom and Dad
Generally, you can only deduct mortgage or student-loan interest if you are legally required to
repay the debt. But if parents pay back a child's student loans, the IRS treats the money as if it
was given to the child, who then paid the debt. So, a child who's not claimed as a dependent can
qualify to deduct up to $2,500 of student-loan interest paid by Mom and Dad. And he or she
doesn't have to itemize to use this money-saver. Mom and Dad can't claim the interest
deduction even though they actually foot the bill since they are not liable for the debt.
Job-hunting costs
If you're among the millions of unemployed Americans who were looking for a job in 2012, we
hope you kept track of your job-search expenses ... or can reconstruct them. If you're looking
for a position in the same line of work, you can deduct job-hunting costs as miscellaneous
expenses if you itemize. Qualifying expenses can be written off even if you didn't land a new job.
In any case, such expenses can be deducted only to the extent that your total miscellaneous
expenses exceed 2% of your adjusted gross income. Job-hunting expenses incurred while
looking for your first job don't qualify. Deductible job-search costs include, but aren't limited to:
Transportation expenses incurred as part of the job search, including 55.5 cents a mile for
driving your own car plus parking and tolls
Food and lodging expenses if your search takes you away from home overnight
Cab fares
Employment agency fees
Costs of printing resumes, business cards, postage, and advertising
The cost of moving for your first job
Although job-hunting expenses are not deductible when looking for your first job, moving
expenses to get to that job are. And you get this write-off even if you don't itemize.
To qualify for the deduction, your first job must be at least 50 miles away from your old home. If
you qualify, you can deduct the cost of getting yourself and your household goods to the new
area. If you drove your own car on a 2012 move, deduct 23 cents a mile, plus what you paid for
parking and tolls.
Military reservists' travel expenses
Members of the National Guard or military reserve may tap a deduction for travel expenses to
drills or meetings. To qualify, you must travel more than 100 miles from home and be away from
home overnight. If you qualify, you can deduct the cost of lodging and half the cost of your
meals, plus an allowance for driving your own car to get to and from drills. For 2012 travel, the
rate is 55.5 cents a mile, plus what you paid for parking fees and tolls.
Deduction of Medicare premiums for the self-employed
Folks who continue to run their own businesses after qualifying for Medicare can deduct the
premiums they pay for Medicare Part B and Medicare Part D and the cost of supplemental
Medicare (medigap) policies. This deduction is available whether or not you itemize and is not
subject the 7.5% of AGI test that applies to itemized medical expenses. One caveat: You can't
claim this deduction if you are eligible to be covered under an employer-subsidized health plan
offered by your employer (if you have a job as well as your business) or your spouse's employer
if he or she has a job that offers family medical coverage.
Child-care credit
A credit is so much better than a deduction; it reduces your tax bill dollar for dollar. So missing
one is even more painful than missing a deduction that simply reduces the amount of income
that's subject to tax. In the 25% bracket, each dollar of deductions is worth a quarter; each
dollar of credits is worth a greenback.
You can qualify for a tax credit worth between 20% and 35% of what you pay for child care while
you work. But if your boss offers a child care reimbursement account -- which allows you to pay
for the child care with pre-tax dollars -- that might be an even better deal. If you qualify for a 20%
credit but are in the 25% tax bracket, for example, the reimbursement plan is the way to go. (In
any case, only amounts paid for the care of children under age 13 count.)
Estate tax on income in respect of a decedent
This sounds complicated, but it can save you a lot of money if you inherited an IRA from
someone whose estate was big enough to be subject to the federal estate tax.
Basically, you get an income-tax deduction for the amount of estate tax paid on the IRA assets
you received. Let's say you inherited a $100,000 IRA, and the fact that the money was included
in your benefactor's estate added $35,000 to the estate-tax bill. You get to deduct that $35,000
on your tax returns as you withdraw the money from the IRA. If you withdraw $50,000 in one
year, for example, you get to claim a $17,500 itemized deduction on Schedule A. That would
save you $4,900 in the 28% bracket.
State tax paid last spring
Did you owe tax when you filed your 2011 state income tax return in the spring of 2012? Then,
for goodness' sake, remember to include that amount in your state-tax deduction on your 2012
federal return, along with state income taxes withheld from your paychecks or paid via
quarterly estimated payments.
Refinancing points
When you buy a house, you get to deduct in one fell swoop the points paid to get your mortgage.
When you refinance, though, you have to deduct the points on the new loan over the life of that
loan. That means you can deduct 1/30th of the points a year if it's a 30-year mortgage. That's
$33 a year for each $1,000 of points you paid -- not much, maybe, but don't throw it away. //
KNOWLEDGEFINANCIALGROUP.COM
Even more important, in the year you pay off the loan -- because you sell the house or refinance
again -- you get to deduct all as-yet-undeducted points. There's one exception to this sweet rule:
If you refinance a refinanced loan with the same lender, you add the points paid on the latest
deal to the leftovers from the previous refinancing -- and deduct that amount gradually over the
life of the new loan. A pain? Yes, but at least you'll be compensated for the hassle.
Jury pay turned over to your employer
Many employers continue to pay employees' full salary while they serve on jury duty, and some
impose a quid pro quo: the employees have to turn over their jury pay to the company coffers.
The only problem is that the IRS demands that you report those jury fees as taxable income. To
even things out, you get to deduct the amount you give to your employer.
But how do you do it? There's no line on the Form 1040 labeled jury fees. Instead the write-off
goes on line 36, which purports to be for simply totaling up deductions that get their own lines.
Add your jury fees to the total of your other write-offs and write "jury pay" on the dotted line.
KNOWLEDGEFINANCIALGROUP.COM
American Opportunity Credit
Unlike the Hope Credit that this one has temporarily replaced, the American Opportunity Credit
is good for all four years of college, not just the first two. Don't shortchange yourself by missing
this critical difference. This tax credit is based on 100% of the first $2,000 spent on qualifying
college expenses and 25% of the next $2,000 . . . for a maximum annual credit per student of
$2,500. The full credit is available to individuals whose modified adjusted gross income is
$80,000 or less ($160,000 or less for married couples filing a joint return). The credit is phased
out for taxpayers with incomes above those levels. If the credit exceeds your tax liability, it can
trigger a refund. (Most credits can reduce your tax to $0, but not get you a check from the IRS.)
Deduct those blasted baggage fees
In recent years airlines have been driving passengers batty with extra fees for baggage and for
making changes in travel plans. All together, such fees add up to billions of dollars each year. If
you get burned, maybe Uncle Sam will help ease the pain. If you're self-employed and travelling
on business, be sure to add those cost to your deductible travel expenses.
Credits for energy-saving home improvements
It's widely believed that tax credit for energy saving home improvement have expired. And that's
true for the credits that encouraged homeowners to replace windows and doors, add insulation
and upgrade air conditioning and furnace systems to more energy-efficient units. But the most
valuable credits still exist ... and will through 2016. These credits effectively refund 30% of the
cost (including labor) of installing l qualified residential alternative energy equipment, such as
solar hot water heaters, geothermal heat pumps and wind turbines. If you installed such a
system in 2012, be sure to let Uncle Sam lend you a hand with the cost.
Additional bonus depreciation
A break that allowed business owners -- including those who run businesses out of their homes
-- to write off 100% of the cost of qualified assets placed in service expired at the end of 2011.
Although Congress did not extend this break retroactively as part of the fiscal cliff deal, bonus
deprecation didn't disappear completely – it's available at the 50% level for qualified assets
purchased in 2012.
Perhaps more valuable is a break Congress did make retroactive for 2012 purchases. The
lawmakers restored a supercharged “expensing” provision -- which basically lets you write off
the full cost of new assets in the year you put them into service. While the dollar limit for
expensing had fallen to $139,000 worth of assets for 2012, the fiscal cliff deal boosted the cap
to $500,000. Note that the right to use expensing phases out if you put more than $2 million
worth of assets into service in 2012
Break on the sale of demutualized stock
The year 2012 brought another court victory for taxpayers battling the IRS over the issue of
demutualized stock. That's stock that a life insurance policyholder receives when the insurer
switches from being a mutual company owned by policyholders to a stock company owned by
stockholders.
The IRS's longstanding position is that such stock had no tax basis, so that when the shares
were sold, the taxpayer owed tax on 100% of the proceeds of the sale. But after a long legal
struggle, a federal court ruled in 2009 that the IRS was wrong. And this year, a federal district
court sided with taxpayers, too.
The courts haven't said what the basis of the stock should be, but many experts think it's
whatever the shares were worth when they were distributed to policyholders. If you sold stock
in 2012 that you received in a demutualization, be sure to claim a basis to hold down your tax
bill. // KNOWLEDGEFINANCIALGROUP.COM
-----------------------------------------------------------
Don't let a knowledge gap prevent you from taking advantage of these money-saving tax
breaks. // KNOWLEDGEFINANCIALGROUP.COM
92 million taxpayers claim about $700 billion worth using standard deductions -- and some of
you who take the easy way out probably shortchange yourselves. (If you turned 65 in 2012,
remember that you now deserve a bigger standard deduction than when you were younger.)
Yes, friends, tax time is a dangerous time. It's all too easy to miss a trick and pay too much.
Years ago, the fellow who ran the IRS at the time that he figured millions of taxpayers overpay
their taxes every year by overlooking just one of the money-savers listed below.
The right for taxpayers to deduct state sales taxes paid expired at the end of 2011. Everyone
expected Congress to revive the tax break sometime during 2012, but the issue got tangled up
in fiscal cliff negotiations. Finally, in the bill approved January 1, 2013, the deduction was
restored ... retroactively for 2012 and for 2013 returns that will be filed next year.
KNOWLEDGEFINANCIALGROUP.COM
Sales tax or and State incometax
This is particularly important to you if you live in a state that does not impose a state income
tax. You see, Congress offers you the choice between deducting state income taxes paid or
state sales taxes paid. You choose whichever gives you the largest deduction, of course, and if
your state doesn't have an income tax, the sales tax write-off is clearly the way to go.
The IRS has tables that show how much residents of various states can deduct, based on their
income and state and local sales tax rates. But the tables aren't the last word. If you purchased
a vehicle, boat or airplane, you may add the sales tax you paid on that big-ticket item to the
amount shown in the IRS table for your state.
The same goes for any homebuilding materials you purchased. These add-on items are easy to
overlook, but could make the sales-tax deduction a better deal even if you live in a state with an
income tax.
If, like most investors, your mutual fund dividends are automatically used to buy extra shares,
remember that each reinvestment increases your tax basis in the fund. That, in turn, reduces
the taxable capital gain (or increases the tax-saving loss) when you redeem shares. Forgetting
to include the reinvested dividends in your basis results in double taxation of the dividends --
once when they were paid out and immediately reinvested in more shares and later when
they're included in the proceeds of the sale. Don't make that costly mistake.
KNOWLEDGEFINANCIALGROUP.COM
Investments
If you're not sure what your basis is, ask the fund for help. (Starting with sales in 2012, mutual
funds must report to investors -- and the IRS -- the tax basis of shares redeemed during the
year. But note this: The new rule applies only to shares purchased in 2012 and later years. If you
redeemed shares you purchased prior to 2012, it's still up to you to figure your basis. Don't
forget those reinvested dividends!)
Out-of-pocket charitable contributions
It's hard to overlook the big charitable gifts you made during the year, by check or payroll
deduction (check your December pay stub).
But the little things add up, too, and you can write off out-of-pocket costs incurred while doing
work for a charity. For example, ingredients for casseroles you prepare for a nonprofit
organization's soup kitchen and stamps you buy for your school's fundraising mailing count as
a charitable contribution. Keep your receipts and if your contribution totals more than $250,
you'll need an acknowledgement from the charity documenting the support you provided. If you
drove your car for charity in 2012, remember to deduct 14 cents per mile plus parking and tolls
paid in your philanthropic journeys.
Student-loan interest paid by Mom and Dad
Generally, you can only deduct mortgage or student-loan interest if you are legally required to
repay the debt. But if parents pay back a child's student loans, the IRS treats the money as if it
was given to the child, who then paid the debt. So, a child who's not claimed as a dependent can
qualify to deduct up to $2,500 of student-loan interest paid by Mom and Dad. And he or she
doesn't have to itemize to use this money-saver. Mom and Dad can't claim the interest
deduction even though they actually foot the bill since they are not liable for the debt.
Job-hunting costs
If you're among the millions of unemployed Americans who were looking for a job in 2012, we
hope you kept track of your job-search expenses ... or can reconstruct them. If you're looking
for a position in the same line of work, you can deduct job-hunting costs as miscellaneous
expenses if you itemize. Qualifying expenses can be written off even if you didn't land a new job.
In any case, such expenses can be deducted only to the extent that your total miscellaneous
expenses exceed 2% of your adjusted gross income. Job-hunting expenses incurred while
looking for your first job don't qualify. Deductible job-search costs include, but aren't limited to:
Transportation expenses incurred as part of the job search, including 55.5 cents a mile for
driving your own car plus parking and tolls
Food and lodging expenses if your search takes you away from home overnight
Cab fares
Employment agency fees
Costs of printing resumes, business cards, postage, and advertising
The cost of moving for your first job
Although job-hunting expenses are not deductible when looking for your first job, moving
expenses to get to that job are. And you get this write-off even if you don't itemize.
To qualify for the deduction, your first job must be at least 50 miles away from your old home. If
you qualify, you can deduct the cost of getting yourself and your household goods to the new
area. If you drove your own car on a 2012 move, deduct 23 cents a mile, plus what you paid for
parking and tolls.
Military reservists' travel expenses
Members of the National Guard or military reserve may tap a deduction for travel expenses to
drills or meetings. To qualify, you must travel more than 100 miles from home and be away from
home overnight. If you qualify, you can deduct the cost of lodging and half the cost of your
meals, plus an allowance for driving your own car to get to and from drills. For 2012 travel, the
rate is 55.5 cents a mile, plus what you paid for parking fees and tolls.
Deduction of Medicare premiums for the self-employed
Folks who continue to run their own businesses after qualifying for Medicare can deduct the
premiums they pay for Medicare Part B and Medicare Part D and the cost of supplemental
Medicare (medigap) policies. This deduction is available whether or not you itemize and is not
subject the 7.5% of AGI test that applies to itemized medical expenses. One caveat: You can't
claim this deduction if you are eligible to be covered under an employer-subsidized health plan
offered by your employer (if you have a job as well as your business) or your spouse's employer
if he or she has a job that offers family medical coverage.
Child-care credit
A credit is so much better than a deduction; it reduces your tax bill dollar for dollar. So missing
one is even more painful than missing a deduction that simply reduces the amount of income
that's subject to tax. In the 25% bracket, each dollar of deductions is worth a quarter; each
dollar of credits is worth a greenback.
You can qualify for a tax credit worth between 20% and 35% of what you pay for child care while
you work. But if your boss offers a child care reimbursement account -- which allows you to pay
for the child care with pre-tax dollars -- that might be an even better deal. If you qualify for a 20%
credit but are in the 25% tax bracket, for example, the reimbursement plan is the way to go. (In
any case, only amounts paid for the care of children under age 13 count.)
Estate tax on income in respect of a decedent
This sounds complicated, but it can save you a lot of money if you inherited an IRA from
someone whose estate was big enough to be subject to the federal estate tax.
Basically, you get an income-tax deduction for the amount of estate tax paid on the IRA assets
you received. Let's say you inherited a $100,000 IRA, and the fact that the money was included
in your benefactor's estate added $35,000 to the estate-tax bill. You get to deduct that $35,000
on your tax returns as you withdraw the money from the IRA. If you withdraw $50,000 in one
year, for example, you get to claim a $17,500 itemized deduction on Schedule A. That would
save you $4,900 in the 28% bracket.
State tax paid last spring
Did you owe tax when you filed your 2011 state income tax return in the spring of 2012? Then,
for goodness' sake, remember to include that amount in your state-tax deduction on your 2012
federal return, along with state income taxes withheld from your paychecks or paid via
quarterly estimated payments.
Refinancing points
When you buy a house, you get to deduct in one fell swoop the points paid to get your mortgage.
When you refinance, though, you have to deduct the points on the new loan over the life of that
loan. That means you can deduct 1/30th of the points a year if it's a 30-year mortgage. That's
$33 a year for each $1,000 of points you paid -- not much, maybe, but don't throw it away. //
KNOWLEDGEFINANCIALGROUP.COM
Even more important, in the year you pay off the loan -- because you sell the house or refinance
again -- you get to deduct all as-yet-undeducted points. There's one exception to this sweet rule:
If you refinance a refinanced loan with the same lender, you add the points paid on the latest
deal to the leftovers from the previous refinancing -- and deduct that amount gradually over the
life of the new loan. A pain? Yes, but at least you'll be compensated for the hassle.
Jury pay turned over to your employer
Many employers continue to pay employees' full salary while they serve on jury duty, and some
impose a quid pro quo: the employees have to turn over their jury pay to the company coffers.
The only problem is that the IRS demands that you report those jury fees as taxable income. To
even things out, you get to deduct the amount you give to your employer.
But how do you do it? There's no line on the Form 1040 labeled jury fees. Instead the write-off
goes on line 36, which purports to be for simply totaling up deductions that get their own lines.
Add your jury fees to the total of your other write-offs and write "jury pay" on the dotted line.
KNOWLEDGEFINANCIALGROUP.COM
American Opportunity Credit
Unlike the Hope Credit that this one has temporarily replaced, the American Opportunity Credit
is good for all four years of college, not just the first two. Don't shortchange yourself by missing
this critical difference. This tax credit is based on 100% of the first $2,000 spent on qualifying
college expenses and 25% of the next $2,000 . . . for a maximum annual credit per student of
$2,500. The full credit is available to individuals whose modified adjusted gross income is
$80,000 or less ($160,000 or less for married couples filing a joint return). The credit is phased
out for taxpayers with incomes above those levels. If the credit exceeds your tax liability, it can
trigger a refund. (Most credits can reduce your tax to $0, but not get you a check from the IRS.)
Deduct those blasted baggage fees
In recent years airlines have been driving passengers batty with extra fees for baggage and for
making changes in travel plans. All together, such fees add up to billions of dollars each year. If
you get burned, maybe Uncle Sam will help ease the pain. If you're self-employed and travelling
on business, be sure to add those cost to your deductible travel expenses.
Credits for energy-saving home improvements
It's widely believed that tax credit for energy saving home improvement have expired. And that's
true for the credits that encouraged homeowners to replace windows and doors, add insulation
and upgrade air conditioning and furnace systems to more energy-efficient units. But the most
valuable credits still exist ... and will through 2016. These credits effectively refund 30% of the
cost (including labor) of installing l qualified residential alternative energy equipment, such as
solar hot water heaters, geothermal heat pumps and wind turbines. If you installed such a
system in 2012, be sure to let Uncle Sam lend you a hand with the cost.
Additional bonus depreciation
A break that allowed business owners -- including those who run businesses out of their homes
-- to write off 100% of the cost of qualified assets placed in service expired at the end of 2011.
Although Congress did not extend this break retroactively as part of the fiscal cliff deal, bonus
deprecation didn't disappear completely – it's available at the 50% level for qualified assets
purchased in 2012.
Perhaps more valuable is a break Congress did make retroactive for 2012 purchases. The
lawmakers restored a supercharged “expensing” provision -- which basically lets you write off
the full cost of new assets in the year you put them into service. While the dollar limit for
expensing had fallen to $139,000 worth of assets for 2012, the fiscal cliff deal boosted the cap
to $500,000. Note that the right to use expensing phases out if you put more than $2 million
worth of assets into service in 2012
Break on the sale of demutualized stock
The year 2012 brought another court victory for taxpayers battling the IRS over the issue of
demutualized stock. That's stock that a life insurance policyholder receives when the insurer
switches from being a mutual company owned by policyholders to a stock company owned by
stockholders.
The IRS's longstanding position is that such stock had no tax basis, so that when the shares
were sold, the taxpayer owed tax on 100% of the proceeds of the sale. But after a long legal
struggle, a federal court ruled in 2009 that the IRS was wrong. And this year, a federal district
court sided with taxpayers, too.
The courts haven't said what the basis of the stock should be, but many experts think it's
whatever the shares were worth when they were distributed to policyholders. If you sold stock
in 2012 that you received in a demutualization, be sure to claim a basis to hold down your tax
bill. // KNOWLEDGEFINANCIALGROUP.COM
-----------------------------------------------------------
Avoid These 10 Common Tax-Filing Mistakes
Thanks to tax preparation software, more of us are making fewer mistakes on our annual tax
returns. But still, just one slip in entering information on your computer could end up costing
you, either in the form of a larger tax bill or a smaller refund.
And even if a mistake -- either on your computer or paper forms -- doesn't cost you cash, it
could delay the receipt of any refund you're expecting.
To get exactly what you should from the Internal Revenue Service, as quickly as possible, look
out for these tax-filing pitfalls. A few are new, thanks to recent law changes. Others are
perennial problems taxpayers face each filing season. With a little care, you can avoid them
all. KNOWLEDGEFINANCIAL.COM AND FINANCIALACADEMYSCHOOL.COM
TAX FILING MISTAKES # 1. Pay your Roth conversion taxes
A lot of taxpayers have taken advantage of the tax law change that now allows anyone,
regardless of income, to convert a traditional individual retirement account to a Roth IRA. But if
you made such a change in 2010 when this conversion was first allowed, you have a tax task
to take care of on your 2012 return. A special provision allowed individuals who moved their
money into a Roth IRA in 2010 to spread the taxes due on converted amounts equally over the
2011 and 2012 tax years. The first half of those conversion taxes was due with your 2011 tax
return. Make sure you pay the rest of the taxes with your 2012 return.
2. Homebuyer tax credit complications
Since its creation, the first-time homebuyer credit went through significant changes. It started
as a $7,500 interest-free loan from Uncle Sam, changed into a true tax credit of up to $8,000
for a first-time buyer and added a $6,500 tax credit for a previous homeowner moving up to
another house.
All the revisions to eligible buyer guidelines, purchase time frames, income thresholds, home
price restrictions and payback requirements are a tax-filing minefield. If you're not careful, a
mistake here could end up costing you the credit or at least slowing down the processing of
your return.
If you're paying back the original $7,500 tax credit, the IRS has made the repayment process a
bit simpler by eliminating in many cases the requirement that taxpayers file Form 5405. Now
some individuals who are repaying the credit can just write the repayment amount they are
including with their taxes directly on Form 1040. KNOWLEDGEFINANCIAL.COM AND
FINANCIALACADEMYSCHOOL.COM
3. Math miscalculations
The most common error on tax returns, year after year, is bad math. Mistakes in arithmetic or
in transferring figures from one schedule to another will get you an immediate correction
notice. Math mistakes also can reduce your tax refund or result in you owing more tax than
you thought. KNOWLEDGEFINANCIALGROUP.COM
Using a tax software program to file your return can help reduce math errors. The built-in
calculators do the work for you, adding, subtracting and inserting numbers on additional
forms as needed. But you still have to make sure your initial numbers are correct. Entering
$3,500 when the real figure is $5,300 makes a lot of tax difference. Getting the numbers right
is crucial because you can be sure the IRS will be double-checking numerical entries against
its copies of your tax statements (W-2, 1099s and the like). When IRS examiners find a
discrepancy, they'll definitely let you know and, in many cases, will correct your mistake and
refigure your taxes for you. Don't give them the chance. Make sure your math entries are right.
4. Direct deposit dangers
Taxpayers can have a refund directly deposited into multiple bank accounts. This option is a
great way to save your refund money, but the more numbers you enter on a tax form, the more
chances you have to enter them incorrectly. And a wrong account or routing number could
cause you to lose your refund entirely.
You can divide your refund into three accounts by filing Form 8888 along with your individual
return. It's not a difficult document to complete, but if you put in wrong account numbers, your
refund could end up in someone else's account or be sent back to the IRS. Either way, you
might not be able to retrieve your refund because there is no IRS procedure for replacing lost
electronically transferred funds.
Incorrect account numbers aren't just a problem when a refund is split multiple ways. Even if
your refund is going to just one account, make very sure you enter your account and bank
routing numbers correctly.
5. Additional income, additional filing work
Did you have a side job this year? If so, as a contractor you probably received a Form
1099-MISC detailing the extra earnings. KNOWLEDGEFINANCIALGROUP.COM
What about savings and investment accounts? For these, you should have received Form
1099-INT and Form 1099 DIV statements.
In each 1099 instance, the IRS knows precisely how much extra money, either as wages or
unearned investment income, you made as soon as you did, thanks to the copies of your 1099
forms that went to the tax agency.
If you forget to include any of these earnings on your return, the IRS examiners will let you
know you owe taxes on it, too. And depending on when your oversight is discovered, you also
could owe penalties and interest on the unreported earnings.
6. Filing status errors
Make sure you choose the correct filing status for your situation. You have five options, and
each could make a difference in your ultimate tax bill.
If this is the first tax-filing season you've been divorced and you now are a single parent,
head-of-household probably will be more beneficial. And you're still married, but you and your
spouse are thinking about filing separate tax returns? That works in some cases, but not all.
Make sure you know what each tax-filing status entails, and choose the one that best fits your
personal and tax situation. KNOWLEDGEFINANCIALGROUP.COM
7. Social Security number oversights
Because the IRS stopped putting taxpayer Social Security numbers on tax package labels in
response to privacy concerns, some taxpayers forget to write in their identification numbers.
Your tax ID number is crucial because there are so many transactions -- income statements,
savings account interest, retirement plan contributions -- keyed to this number.
The nine-digit sequence also is vital to claim several tax credits, such as the child tax and
additional child tax credits as well as ones for educational expenses and dependent care
costs.
And make sure the names associated with the Social Security numbers match Social Security
Administration records. A difference here also will cause the IRS to kick out or slow down
your return. KNOWLEDGEFINANCIALGROUP.COM
8. Complete charitable contributions
Did you give to charitable groups last year? All types of donations, from cash to cars, could be
valuable tax deductions, so make sure you count them all when you file. Be sure to follow the
donation tax rules, the most important being that you give to a qualified organization -- that is,
one that has tax-exempt status with the IRS. Also be careful when calculating any gifts of
clothing and household items. Tax law now requires that these donations be in good or better
condition or the deduction is disallowed.
9. Signature required
Sign and date your return. The IRS won't process it if it's missing a John Hancock, and that
means on e-filed returns, too. Taxpayers filing electronically must sign the return
electronically using a personal identification number, or PIN. To verify your identity, you'll have
to provide the PIN you used last year or your adjusted gross income from your previous year's
tax return.
Your tax software should walk you through the e-signature process, but if you're still mailing
your return, don't be in such a hurry that you stuff your 1040 in the preaddressed IRS envelope
without signing it. And if it's a joint filing, you and your spouse must sign.
10. Missing the deadline
Don't miss the impending April 15 tax deadline. If you owe the IRS and that's the reason you're
thinking of not filing, that's a bad idea. If you don't file a return, you'll face even stiffer penalties.
So send in the paperwork, pay what you cann and talk with the IRS or your tax professional
about the next steps. KNOWLEDGEFINANCIALGROUP.COM
Thanks to tax preparation software, more of us are making fewer mistakes on our annual tax
returns. But still, just one slip in entering information on your computer could end up costing
you, either in the form of a larger tax bill or a smaller refund.
And even if a mistake -- either on your computer or paper forms -- doesn't cost you cash, it
could delay the receipt of any refund you're expecting.
To get exactly what you should from the Internal Revenue Service, as quickly as possible, look
out for these tax-filing pitfalls. A few are new, thanks to recent law changes. Others are
perennial problems taxpayers face each filing season. With a little care, you can avoid them
all. KNOWLEDGEFINANCIAL.COM AND FINANCIALACADEMYSCHOOL.COM
TAX FILING MISTAKES # 1. Pay your Roth conversion taxes
A lot of taxpayers have taken advantage of the tax law change that now allows anyone,
regardless of income, to convert a traditional individual retirement account to a Roth IRA. But if
you made such a change in 2010 when this conversion was first allowed, you have a tax task
to take care of on your 2012 return. A special provision allowed individuals who moved their
money into a Roth IRA in 2010 to spread the taxes due on converted amounts equally over the
2011 and 2012 tax years. The first half of those conversion taxes was due with your 2011 tax
return. Make sure you pay the rest of the taxes with your 2012 return.
2. Homebuyer tax credit complications
Since its creation, the first-time homebuyer credit went through significant changes. It started
as a $7,500 interest-free loan from Uncle Sam, changed into a true tax credit of up to $8,000
for a first-time buyer and added a $6,500 tax credit for a previous homeowner moving up to
another house.
All the revisions to eligible buyer guidelines, purchase time frames, income thresholds, home
price restrictions and payback requirements are a tax-filing minefield. If you're not careful, a
mistake here could end up costing you the credit or at least slowing down the processing of
your return.
If you're paying back the original $7,500 tax credit, the IRS has made the repayment process a
bit simpler by eliminating in many cases the requirement that taxpayers file Form 5405. Now
some individuals who are repaying the credit can just write the repayment amount they are
including with their taxes directly on Form 1040. KNOWLEDGEFINANCIAL.COM AND
FINANCIALACADEMYSCHOOL.COM
3. Math miscalculations
The most common error on tax returns, year after year, is bad math. Mistakes in arithmetic or
in transferring figures from one schedule to another will get you an immediate correction
notice. Math mistakes also can reduce your tax refund or result in you owing more tax than
you thought. KNOWLEDGEFINANCIALGROUP.COM
Using a tax software program to file your return can help reduce math errors. The built-in
calculators do the work for you, adding, subtracting and inserting numbers on additional
forms as needed. But you still have to make sure your initial numbers are correct. Entering
$3,500 when the real figure is $5,300 makes a lot of tax difference. Getting the numbers right
is crucial because you can be sure the IRS will be double-checking numerical entries against
its copies of your tax statements (W-2, 1099s and the like). When IRS examiners find a
discrepancy, they'll definitely let you know and, in many cases, will correct your mistake and
refigure your taxes for you. Don't give them the chance. Make sure your math entries are right.
4. Direct deposit dangers
Taxpayers can have a refund directly deposited into multiple bank accounts. This option is a
great way to save your refund money, but the more numbers you enter on a tax form, the more
chances you have to enter them incorrectly. And a wrong account or routing number could
cause you to lose your refund entirely.
You can divide your refund into three accounts by filing Form 8888 along with your individual
return. It's not a difficult document to complete, but if you put in wrong account numbers, your
refund could end up in someone else's account or be sent back to the IRS. Either way, you
might not be able to retrieve your refund because there is no IRS procedure for replacing lost
electronically transferred funds.
Incorrect account numbers aren't just a problem when a refund is split multiple ways. Even if
your refund is going to just one account, make very sure you enter your account and bank
routing numbers correctly.
5. Additional income, additional filing work
Did you have a side job this year? If so, as a contractor you probably received a Form
1099-MISC detailing the extra earnings. KNOWLEDGEFINANCIALGROUP.COM
What about savings and investment accounts? For these, you should have received Form
1099-INT and Form 1099 DIV statements.
In each 1099 instance, the IRS knows precisely how much extra money, either as wages or
unearned investment income, you made as soon as you did, thanks to the copies of your 1099
forms that went to the tax agency.
If you forget to include any of these earnings on your return, the IRS examiners will let you
know you owe taxes on it, too. And depending on when your oversight is discovered, you also
could owe penalties and interest on the unreported earnings.
6. Filing status errors
Make sure you choose the correct filing status for your situation. You have five options, and
each could make a difference in your ultimate tax bill.
If this is the first tax-filing season you've been divorced and you now are a single parent,
head-of-household probably will be more beneficial. And you're still married, but you and your
spouse are thinking about filing separate tax returns? That works in some cases, but not all.
Make sure you know what each tax-filing status entails, and choose the one that best fits your
personal and tax situation. KNOWLEDGEFINANCIALGROUP.COM
7. Social Security number oversights
Because the IRS stopped putting taxpayer Social Security numbers on tax package labels in
response to privacy concerns, some taxpayers forget to write in their identification numbers.
Your tax ID number is crucial because there are so many transactions -- income statements,
savings account interest, retirement plan contributions -- keyed to this number.
The nine-digit sequence also is vital to claim several tax credits, such as the child tax and
additional child tax credits as well as ones for educational expenses and dependent care
costs.
And make sure the names associated with the Social Security numbers match Social Security
Administration records. A difference here also will cause the IRS to kick out or slow down
your return. KNOWLEDGEFINANCIALGROUP.COM
8. Complete charitable contributions
Did you give to charitable groups last year? All types of donations, from cash to cars, could be
valuable tax deductions, so make sure you count them all when you file. Be sure to follow the
donation tax rules, the most important being that you give to a qualified organization -- that is,
one that has tax-exempt status with the IRS. Also be careful when calculating any gifts of
clothing and household items. Tax law now requires that these donations be in good or better
condition or the deduction is disallowed.
9. Signature required
Sign and date your return. The IRS won't process it if it's missing a John Hancock, and that
means on e-filed returns, too. Taxpayers filing electronically must sign the return
electronically using a personal identification number, or PIN. To verify your identity, you'll have
to provide the PIN you used last year or your adjusted gross income from your previous year's
tax return.
Your tax software should walk you through the e-signature process, but if you're still mailing
your return, don't be in such a hurry that you stuff your 1040 in the preaddressed IRS envelope
without signing it. And if it's a joint filing, you and your spouse must sign.
10. Missing the deadline
Don't miss the impending April 15 tax deadline. If you owe the IRS and that's the reason you're
thinking of not filing, that's a bad idea. If you don't file a return, you'll face even stiffer penalties.
So send in the paperwork, pay what you cann and talk with the IRS or your tax professional
about the next steps. KNOWLEDGEFINANCIALGROUP.COM
''HERE WE ARE..''
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Happiness - Friendship -''Life - Love - Relationships - Faith -
Forgiveness - Positive Thoughts - Motivation - Marriage -
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Happiness - Friendship -''Life - Love - Relationships - Faith -
Forgiveness - Positive Thoughts - Motivation - Marriage -
Trust '-
''YOUR SUCCESS COULD BE HERE..'''
Economy -Insurance - Finance - ''Business -Investing - Real
Estate, - Canada Tax deeds And Tax Lien Certificates -
United States Tax Liens Foreclosure Investments. Ways To
Success ''
Economy -Insurance - Finance - ''Business -Investing - Real
Estate, - Canada Tax deeds And Tax Lien Certificates -
United States Tax Liens Foreclosure Investments. Ways To
Success ''
'BLOG-Entrepreneur- Investing & Finance // Real Estate Tax Liens Blog // Financial Academy School // Nurses Of America - Blog // Insurance Guide- Blog //
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| Make Money When Buying Investment Properties.. It’s often said “You make your money when you buy.” There are many different strategies you can use to ensure profitability when you buy, starting with finding the best deals. The following is a list of many of the top places to find good deals and make money when you buy. 33.) Subject-To – Purchasing a home with the existing financing in place. This method, while not illegal, can trigger the "due on sale" clause and cause the bank to start foreclosure on the property. Use with care. 34.) Lease Option – As mentioned earlier, a lease-option (lease purchase) is a method used to control real estate without taking title. It is simply "renting" the property with the legal right to buy it later. This can be a good way to buy a property if your intent is to quickly sell it again later. 35.) For Sale By Owners (FSBO) – Often times, sellers will decide to save the costs of hiring a real estate agent to sell their home and sell it themselves with a sign or newspaper advertisement. These sellers can often times be excellent sources of finding good deals or seller- financed deals. 36.) Buying REO’s – REO’s are bank-owned properties that were taken back in foreclosure. Often times these properties can be picked up for significant discount, as a bank is often very willing to get the loan off their books. Additionally, there is no emotional attachment on the part of the bank. 37.) Auction at the Courthouse Steps – During the process of foreclosure, a home is generally brought to the courthouse steps to be sold to the highest bidder. If no one bids, the home goes back to the bank. Often times, homes can be purchased for steep discounts using this method. 38.) Buying in Pre-foreclosure – Sellers on the brink of losing their home can be very motivated to sell their home and save their credit. Many times, more is owed on the house than the house is worth. However, sometimes great deals can be found by weeding out a lot of bad deals. 39.) Short Sales – A bank will often take less than the loan amount on a property to save the hassle and costs of foreclosing. This means you can often get a great deal if you can wade through the red tape and long wait-times that short sales involve. 40.) Tax Liens – When homeowner’s refuse to pay their taxes, the government can foreclose and resell the property. You’ve probably seen the “Pennies on the dollar” infomercials on late night television, but this method can be trickier than the gurus portray on TV. 41.) HUD Foreclosures – When a US government ensured loan is foreclosed on, it often becomes the property of the department of Housing and Urban Development. It is their job to sell the home and often will offer steep discounts in order to move the product. 42.) VA Foreclosures – Similar to the HUD foreclosures, the US Department of Veteran’s Affairs sells their homes as well after foreclosing on one of their insured properties – and no, you don’t need to be a veteran to buy one.43.) USDA Rural Development Loans – If you live in a rural area, the US Department of Agriculture actually offers a loan program for primary residence homes that require as little as 0% down. 44.) VA Loans – If you are a veteran of the United States, the government offers 0% down loans on primary residences. 45.) Bulk REO’s – Often times, banks will group together large packages of REOs and sell them in a package to large investment firms or wealthy investors. Make Money Using These Marketing Techniques Without proper marketing, you’ll never make any money in real estate. Whether renting, selling, buying, or any other activity, these techniques will help you find the solutions to the issues you face. 46.) Bandit Signs – You’ve seen them before – those rectangular, often hand-written signs, that advertise “we buy houses” or a variety of other sales information. While tacky and well used, this method is still one of the best ways to market your business. (Editor’s note: Be aware that they are also illegal in many, if not most areas) 47.) Direct Mail – This old school method of finding leads still works today. Sending out a massive amount of letter, especially to your defined target market, is a great way to get calls and weed through deals. 48.) Craigslist Ads – Craigslist is free, easy to use, and taking over the marketing from newspapers across the country. If you don’t use Craigslist yet, do so. 49.) PPC Marketing – PPC (short for Pay Per Click) marketing is the process of soliciting business online through companies like Google, Facebook, Bing, and Others. The beauty of PPC marketing is that you only pay when an ad is clicked on – thus you only pay when an ad works. 50.) Newspapers – The classic way of advertising still is one of the best, if you can afford it. 51.) Business Cards – If you don’t have business cards, you are leaving a lot of money on the table. Hand out business cards to every person you meet and you’ll be surprised at how quick your business grows. 52.) Websites – Websites today are very inexpensive and easy to create. You have no excuse to at least have a Facebook page, LinkedIn, or 53.) Word of Mouth – Despite all the technology we have today, nothing will ever come close to the effectiveness of word-of-mouth advertising. |
'' ' ''Real Estate Investing: Here are more than 15 ways to start investing in real estate to make money...''
------------------
'' Investment Properties Knowledge And Useful Information... Everything To Know About Rental Property For Monthly Cash-flow From A To Z. ...
LEARN MORE...
-----------
''Types of Property Ownership: There are a variety of forms of ownership of
property people need to know about...
---------
''Find 55+ Communities and Senior Living. Affordable Retirement
Communities. Resort Properties For Seniors...
-------------------
''How to Make Money in Real Estate? Types of Real Estate to Invest in... Real Estate Invesing, Active vs Passive??
------------------
'' Ways To Invest In Real Estate Without Buying Property... How to Better Investing in Real Estate With No MORTGAGE?
-------------------
How to Make Money in Real Estate: 10 basic Ways ...
There are many ways to make money in real estate / Investors can realize attractive
returns from multiple income streams in real estate investments'''
-----------------------------
'' Ways to Value a Real Estate Rental Property
Determining the cost of and the return on an investment property are just as important as figuring out its value.''
---------------
'' Income Property - Everything People Need To Know About Rental Property. What are the
best ways to make money in real estate? LEARN MORE..
------------
'' Types of Property Ownership...
There are a variety of forms of ownership of property.----
'' How to Invest In Real Estate without Having to Buy Houses?
-----------
'' Home Warranties, Why Many People Need Them?
Owning a home is a pricey endeavor. It requires attention and upkeep simply because things get old a need to be
replaced...
----------------
'' How to invest and Make Money in Real Estate?…
''Making Money On These Major Types of Properties''
There are many different property types that you can use to make money...
--------------
''General Knowledge For Investing in Commercial Real Estate:
''cash for today or wealth for tomorrow?-
'' Residential Vs. Commercial'' LEARN MORE...
--------------
'' How To Make Money In Real Estate When Buying Investments
It’s often said “You make your money when you buy.” There are many
different strategies you can use to ensure profitability... LEARN MORE''
-----------------
'' How To Make Money In These Real Estate Related Careers...
You don’t need to invest in real estate to begin making money from
it...''LEARN MORE...
------------
'' Invest In Real Estate With less than $1,000 To Start With. Get Your
Fair Share. Easy And Simple To Build Your Portfolio / Real Estate
Investment Trust Can Help..
=====
Economic and Stock Market Terms People Should Know...
If you're not a professional investor, it can seem like financial news is in a completely different language. Investing, like any specialized field, has its own
jargon.
----------------------------
Essential terms
Asset
An asset is a piece of property that has value and can potentially be sold to someone else for cash. You can own physical assets, like a house. You can
also own financial assets, which are intangible but still can rise or fall in value.
----------------------------
Security
This broad term describes a financial asset that can be sold on an investment market. Stocks, bonds and derivatives are all examples of securities.
----------------------------
Portfolio
All your investments combined make up your portfolio. A portfolio can include a mix of stocks, bonds, cash and other investments.
---------------------------
Types of investments
Stocks
Stocks, aka equities, are shares of ownership in a “public” company. Companies sell stocks to investors to raise money. In exchange, investors become
partial owners of the company and are entitled to a portion of its profits (sometimes paid in quarterly dividends). Depending on the type of shares they
own, stockholders can also vote on certain company matters.
---------------------------
Bonds
These are loans you can make to a company, government or another institution for a set period in return for a stated rate of interest. At the end of the term,
the bond issuer returns your “principal” (initial loan amount). But in the interim, bonds can be bought and sold on the “secondary” market. In general, the
higher a bond’s interest rates, the lower its price (and vice versa). Interest rates can depend on a bond’s quality (the ability of the issuer to repay the loan)
and the direction of rates set by the federal government.
-----------------------------------
Derivatives
As the name suggests, these complicated investments are derived from other investments. They're contracts based on an “underlying” asset, like a stock
or the price of oil.
For example, a derivative contract may require one investor to sell oil to another investor at a set price over a specified period. Derivatives can earn
potentially high returns — with high risk. In fact, a derivative called collateralized mortgage obligations (CMOs) was partly to blame for the housing market
crash that fed the stock market crash of 2008.
--------------------------------
Currency
Currency refers to the types of money issued by different countries. The values of different currencies rise and fall separately from each other, so
“exchange rates” between currencies (for example, the value of U.S. dollars vs. Japanese yen or Mexican pesos) fluctuates daily. You can invest in
currencies you believe will gain in value versus other currencies. These investments are typically made using a derivative contract.
-------------------------------
Mutual funds
These bundles of stock, bond or other investments are available in retirement plans, brokerage accounts and directly from fund companies. They enable
you to “spread” your risk among many similar investments, and they’re available with all kinds of objectives. Most mutual funds are “actively” managed —
they use research to focus on particular types of investments, industry sectors or locations. Each mutual fund’s share price, or net asset value (NAV), is
determined once a day after the markets have closed, based on the performance of the investments they hold.
-----------------------------------
Exchange-traded fund (ETF)
Like mutual funds, ETFs are professionally managed bundles of stocks, bonds or other investments. The difference: Like stocks, ETF shares trade on
exchanges (and their prices change) throughout the day. This makes them more “liquid” than mutual funds. Also, most ETFs are “passively” managed:
They try to mirror the performance of “indexes” (published lists of investments that match their strategy or target market segment). Because index funds’
managers know what to invest in and in what proportions, they can charge investors less in annual operating expenses.
---------------------------
Investment income
Interest rate
Bonds have an associated interest rate they'll pay after you buy them. Generally, the lower the rate, the safer the bond. A company rated lower by agencies
such as Standard & Poor’s or Moody’s, or one running into financial trouble, typically pays a higher interest rate. Also, bonds’ prices and interest rates
typically have an “inverse relationship”: When one goes up, the other usually goes down.
-----------------------------------
Dividend
When a public company chooses to distribute profits to shareholders, it makes payments called dividends. Dividends aren't guaranteed, and their
frequency can vary, though quarterly payments are common. Dividends are treated as regular income for tax purposes. Also, many companies allow
investors to reinvest dividends in shares of stock rather than receive them as cash.
---------------------------------
Capital gain
If you sell stocks, bonds, real estate or other investments for more than you paid, your profit is called a capital gain. To encourage people to stay with
investments, the IRS charges a lower tax rate on capital gains than on regular income if you hold the investment for more than a year. If you sell an
investment for less than you paid, you can deduct the difference as a capital loss on your taxes.
Liquidity
Liquidity describes how quickly you can turn an investment into cash. Stocks, bonds and other securities are relatively liquid because you can sell them
to another investor and receive cash anytime markets are open. By contrast, a house is less liquid because the process of selling can take much more
time. Note that just because something is liquid doesn't mean it's safer. While you may be able to sell your liquid assets more quickly, you could sell them
at a loss.
---------------------------------
Common stock market terms
Market
A general term for the marketplace in which people buy and sell investments (e.g., stock market, bond market. commodity market), it sometimes refers to
the exchanges on which those investments are sold. The market lists available securities and their selling prices, then connects buyers with sellers. The
New York Stock Exchange, Nasdaq and London Stock Exchange are some of the major investment markets.
------------------
Broker
As an individual investor, you can't access markets directly. Instead, you work through a human or online broker. You open an account, deposit money
and tell the broker which investments to make; the broker handles the transaction on the appropriate market.
Initial public offering
When a private company first raises money by offering shares of stock to the general public, it does so via an initial public offering (IPO). The now “public”
company’s stock becomes listed on a market exchange, and those shares can be bought and sold in the “secondary” market.
--------------------------
Credit rating
Three agencies — Standard & Poor's, Moody's Investors Service and Fitch Ratings — are responsible for rating the financial strength of companies and
their bonds. A company with the highest rating (AAA) is considered the most stable and likeliest to pay off all their bonds. Bonds with low ratings may offer
a higher interest rate in return for greater risk that they will miss payments or even go bankrupt. Such bonds are known as “high-yield” or “junk” bonds.
--------------------------
Trades
Trades are the transactions investors make when they buy or sell securities to other investors. Professional traders handle these transactions on Wall
Street, while amateur traders generally fall into two camps: “day traders” who make multiple transactions every day (often using sophisticated software to
find opportunities to make even small but frequent profits) and…everyone else.
Buy and hold
With this investment strategy, rather than trading frequently, an investor will buy stocks and wait for them to grow over time. Since stock market prices
have historically risen in value over time, this approach can be profitable while also reducing investment fees.
---------------------------------
Economic terms Recession
Normally, the economy grows over time. A recession is when the economy has negative growth for two quarters or more — over six months.
---------------------------
Bull and bear markets
A bull market is an extended period of rising investment values, often lasting years. A bear market is an extended period of investment losses. Historically
bear markets have not been as long-lasting as the bull markets that follow them. Even so, during these stretches the right strategies can help protect your
income.
---------------------
Correction
Usually applied to the stock market, a correction occurs when prices fall at 10% from their previous high. The term usually refers to the market
“correcting” its course when stocks are considered overpriced.
Rally
This is when stocks and other securities experience a sustained period of rising prices, typically after taking a big loss.
----------
JOB INTERVIEW RULE 7/38/55
NOTE: In a job interview, your body language .Your posture is doing 55% of the job.
38% is related to your tone, voice, and accent. and about just
7% is related to content meaning your answers, explanitions to question
==============
Financial Literacy At: Knowledge Financial Group - knowledgefinancialgroup.com
Low literacy rates dramatically impact the lives of many people, demanding they work harder, take more time to pay debts and, sometimes settle for less
and earning less at workplace..
Lack of financial education makes it difficult to understand bank statements, financial statements, credit card agreements, ways to invest and other
financial documents.
People who are lacking of competency in financial literacy face serious repercussions, such as managing debts, defaulting on loans easily, and
experiencing difficulty managing income, and investments.
---------------------
Investment Knowledge And Warning..
Before investing in a mutual fund or ETF, carefully consider the fund's investment objectives, risks, charges and expenses. For a prospectus containing
this and other important information, contact the fund or contact Client Services representative. Please read the prospectus carefully before investing.
Investments in fixed-income products are subject to liquidity (or market) risk, interest rate risk (bonds ordinarily decline in price when interest rates rise
and rise in price when interest rates fall)
----------------------
Modernize your investing experience with the help of: Knowledge Financial Group -
Research potential investments, and confidently place trades on your phone, tablet or desktop.
Visionone Capital Management.
More research for more informed investments
Get a deeper understanding of potential investments in no time with real-time market updates with Visionone Holding Company.
Fruital Investment Group, Visit our Education Center at: Knowledge Financial Group to expand your investing knowledge
with learning tools and then solidify your new skills. Research, tools and resources are sometimes provided by unaffiliated third-party sources.
-----------------------
At: Visionone Holding Company and certainly at: Knowledge Financial Group we believe knowledge is one of an investor's best assets. That’s
why we provide a full range of educational resources.
---------------
Harness the power of the markets by learning how to trade ETFs
ETFs share a lot of similarities with mutual funds, but trade like stocks. Discover how ETFs can help you gain the advantages of diversity with a basket of
holdings, Femkonsa Capital Investment.
----------------------------
Understanding the basics of ETF'S
Exchange traded funds (ETFs) are baskets of securities that trade intraday like individual stocks on an exchange, and are typically designed to track an
underlying index. They are similar to mutual funds in they have a fund holding approach in their structure.
Each ETF is usually focused on a specific sector, asset class, or category. ETFs can be used to help diversify your portfolio, or, for the active trader, they
can be used to profit from price movements. In addition, since ETFs are traded on an exchange like stocks.
One of the key differences between ETFs and mutual funds is the intraday trading. Mutual funds settle on one price at the end of the trading day, known
as the net asset value, or NAV. ETFs are traded on the exchange during the day, so their price fluctuates with the market supply and demand, just like
stocks .
---------------------------
Trading ETFs
Liquidity: The ETF market is large and active with several popular, heavily traded issues. This makes it easier to get in and out of trades. However, liquidity
varies greatly, and some narrowly focused ETFs are illiquid.
Choices: There is a huge variety of ETFs to choose from across different asset classes, such as stocks and bonds. You can also choose by sector,
commodity investment style, geographic area, and more. Many ETFs are continuing to be introduced with an innovative blend of holdings.
------------------------
Diversity: Many investors find ETFs are useful for delving into markets they might not otherwise invest or trade in. Since they are baskets of assets
and not individual stocks, ETFs allow for a more diverse approach to investing in these areas, which may help mitigate the risks for many investors.
Commissions and Fees: ETFs typically trade by commission, however, TD Ameritrade offers access to an extensive list of commission-free ETFs. In
general, an ETF tends to be more cost-efficient than an actively managed mutual fund, because of its indexed nature. This often results in lower fees.
========
Index Funds 101
You’ve probably heard of index funds. Much like other mutual funds and exchange-traded funds (ETFs), index funds consist of a basket of assets
designed to mimic the performance of an index. But index funds are passively managed.
-------------------------
Index Fund?
Index funds are mutual funds without the “what to own” decisions of active management. There are many types of index funds, all designed to track the
movements of various sectors, markets, asset classes, or industries. Many top index funds are based on the S&P 500 Index (SPX),
There are also index funds that focus on sectors, such as technology, industrials, materials, real estate, healthcare, transportation, communication,
energy etc.
Because index funds aren’t actively managed, they’re often referred to as “passively managed.” That means they follow an underlying index, so there’s
less need for the manager to buy or sell components (unless the index itself changes).
That means fees can be kept down. Index funds typically have low expense ratios compared to actively managed funds, where more buying and selling
decisions are required to meet the goal of outperforming an index. Plus, index funds can help diversify a portfolio without single-stock risk.
-------------------
Lack of Retirement Planning Priorities
A man reaching 65 today will on average live to 84.3 compared to a woman’s 86.6-year lifespan, according to the Social Security Administration. With
women having longer lifespans, the amount of savings needed for retirement grows.
Single women of all types — unmarried, divorced and widowed— from age 44 to 64 are underprepared for retirement. IRA and 401(k) balances fall short
compared to male equivalents. Single and married women tend to focus on priorities other than retirement, like paying for their children’s needs and
owning a house.
One of the worst outcomes of not prioritizing savings is missing opportunities to leverage time in your favor. Money kept in interest-bearing accounts for
years can grow into a substantial asset. Employer-offered accounts include tax advantages and sometimes match plans that double savings.
----------------------------
Financial Literacy Is So Important
Few are prepared as financial decision making grows more complex
You can take action in your changing your financial trajectory right away by starting with these steps:
------------------------
Financial Literacy in Decline
In past generations, cash was used for most daily purchases; today, it's rarely flashed—particularly not by younger shoppers. The way we shop has
changed as well. Online shopping has become the top choice for many.
Meanwhile, credit card companies, banks, and other financial institutions are inundating consumers with credit opportunities—the ability to apply for
credit cards or pay off one card with another. Without the proper knowledge or checks and balances, it is easy to get into financial trouble.
----------------------
Learn your credit score
You can get a free annual credit report at AnnualCreditReport.com, which is authorized by federal law as the official site for free annual credit reports. Then
purchase your actual credit score from one of the three credit bureaus.
Keep a record of your personal debt
By writing down paid off debts, you can track your progress and celebrate small victories.
---------------
Make a budget
Paying off debt will be easier once you start setting limits for yourself and recognizing the difference between needs and wants.
---------------
Open a savings account
With a few online banking clicks, you can set up automatic deductions from your direct-deposit debit card to an interest-earning savings account.
---------------
Pay overdue bills
Stop ignoring debt collectors and find out if you can negotiate affordable payments, rather than racking up more late fees.
--------------------
Plan for retirement
Consider options for funding your retirement and securing your financial future. Talk to a financial advisor about your current situation and how to start
planning for retirement now. From contributing to a 401(k) plan to buying an annuity to rebalancing your investment portfolio
The level of financial literacy varies according to education and income levels, but evidence shows that highly educated consumers with high incomes
can be just as ignorant about financial issues as less-educated, lower-income consumers (though, in general, the latter do tend to be less financially
literate). And it seems consumers are hesitant to learn.
---------------
Savings and investment options are more complex
Consumers are also being asked to choose among various investment and savings products. These products are more sophisticated than in the past,
requiring consumers to choose among different options that offer varying interest rates and maturities, decisions they are not adequately educated to
make. Deciding on complex financial instruments with a large range of options can impact a consumer’s ability to buy a home, finance an education, or
save for retirement, adding to the decision-making pressure.
Economic and Stock Market Terms People Should Know...
If you're not a professional investor, it can seem like financial news is in a completely different language. Investing, like any specialized field, has its own
jargon.
----------------------------
Essential terms
Asset
An asset is a piece of property that has value and can potentially be sold to someone else for cash. You can own physical assets, like a house. You can
also own financial assets, which are intangible but still can rise or fall in value.
----------------------------
Security
This broad term describes a financial asset that can be sold on an investment market. Stocks, bonds and derivatives are all examples of securities.
----------------------------
Portfolio
All your investments combined make up your portfolio. A portfolio can include a mix of stocks, bonds, cash and other investments.
---------------------------
Types of investments
Stocks
Stocks, aka equities, are shares of ownership in a “public” company. Companies sell stocks to investors to raise money. In exchange, investors become
partial owners of the company and are entitled to a portion of its profits (sometimes paid in quarterly dividends). Depending on the type of shares they
own, stockholders can also vote on certain company matters.
---------------------------
Bonds
These are loans you can make to a company, government or another institution for a set period in return for a stated rate of interest. At the end of the term,
the bond issuer returns your “principal” (initial loan amount). But in the interim, bonds can be bought and sold on the “secondary” market. In general, the
higher a bond’s interest rates, the lower its price (and vice versa). Interest rates can depend on a bond’s quality (the ability of the issuer to repay the loan)
and the direction of rates set by the federal government.
-----------------------------------
Derivatives
As the name suggests, these complicated investments are derived from other investments. They're contracts based on an “underlying” asset, like a stock
or the price of oil.
For example, a derivative contract may require one investor to sell oil to another investor at a set price over a specified period. Derivatives can earn
potentially high returns — with high risk. In fact, a derivative called collateralized mortgage obligations (CMOs) was partly to blame for the housing market
crash that fed the stock market crash of 2008.
--------------------------------
Currency
Currency refers to the types of money issued by different countries. The values of different currencies rise and fall separately from each other, so
“exchange rates” between currencies (for example, the value of U.S. dollars vs. Japanese yen or Mexican pesos) fluctuates daily. You can invest in
currencies you believe will gain in value versus other currencies. These investments are typically made using a derivative contract.
-------------------------------
Mutual funds
These bundles of stock, bond or other investments are available in retirement plans, brokerage accounts and directly from fund companies. They enable
you to “spread” your risk among many similar investments, and they’re available with all kinds of objectives. Most mutual funds are “actively” managed —
they use research to focus on particular types of investments, industry sectors or locations. Each mutual fund’s share price, or net asset value (NAV), is
determined once a day after the markets have closed, based on the performance of the investments they hold.
-----------------------------------
Exchange-traded fund (ETF)
Like mutual funds, ETFs are professionally managed bundles of stocks, bonds or other investments. The difference: Like stocks, ETF shares trade on
exchanges (and their prices change) throughout the day. This makes them more “liquid” than mutual funds. Also, most ETFs are “passively” managed:
They try to mirror the performance of “indexes” (published lists of investments that match their strategy or target market segment). Because index funds’
managers know what to invest in and in what proportions, they can charge investors less in annual operating expenses.
---------------------------
Investment income
Interest rate
Bonds have an associated interest rate they'll pay after you buy them. Generally, the lower the rate, the safer the bond. A company rated lower by agencies
such as Standard & Poor’s or Moody’s, or one running into financial trouble, typically pays a higher interest rate. Also, bonds’ prices and interest rates
typically have an “inverse relationship”: When one goes up, the other usually goes down.
-----------------------------------
Dividend
When a public company chooses to distribute profits to shareholders, it makes payments called dividends. Dividends aren't guaranteed, and their
frequency can vary, though quarterly payments are common. Dividends are treated as regular income for tax purposes. Also, many companies allow
investors to reinvest dividends in shares of stock rather than receive them as cash.
---------------------------------
Capital gain
If you sell stocks, bonds, real estate or other investments for more than you paid, your profit is called a capital gain. To encourage people to stay with
investments, the IRS charges a lower tax rate on capital gains than on regular income if you hold the investment for more than a year. If you sell an
investment for less than you paid, you can deduct the difference as a capital loss on your taxes.
Liquidity
Liquidity describes how quickly you can turn an investment into cash. Stocks, bonds and other securities are relatively liquid because you can sell them
to another investor and receive cash anytime markets are open. By contrast, a house is less liquid because the process of selling can take much more
time. Note that just because something is liquid doesn't mean it's safer. While you may be able to sell your liquid assets more quickly, you could sell them
at a loss.
---------------------------------
Common stock market terms
Market
A general term for the marketplace in which people buy and sell investments (e.g., stock market, bond market. commodity market), it sometimes refers to
the exchanges on which those investments are sold. The market lists available securities and their selling prices, then connects buyers with sellers. The
New York Stock Exchange, Nasdaq and London Stock Exchange are some of the major investment markets.
------------------
Broker
As an individual investor, you can't access markets directly. Instead, you work through a human or online broker. You open an account, deposit money
and tell the broker which investments to make; the broker handles the transaction on the appropriate market.
Initial public offering
When a private company first raises money by offering shares of stock to the general public, it does so via an initial public offering (IPO). The now “public”
company’s stock becomes listed on a market exchange, and those shares can be bought and sold in the “secondary” market.
--------------------------
Credit rating
Three agencies — Standard & Poor's, Moody's Investors Service and Fitch Ratings — are responsible for rating the financial strength of companies and
their bonds. A company with the highest rating (AAA) is considered the most stable and likeliest to pay off all their bonds. Bonds with low ratings may offer
a higher interest rate in return for greater risk that they will miss payments or even go bankrupt. Such bonds are known as “high-yield” or “junk” bonds.
--------------------------
Trades
Trades are the transactions investors make when they buy or sell securities to other investors. Professional traders handle these transactions on Wall
Street, while amateur traders generally fall into two camps: “day traders” who make multiple transactions every day (often using sophisticated software to
find opportunities to make even small but frequent profits) and…everyone else.
Buy and hold
With this investment strategy, rather than trading frequently, an investor will buy stocks and wait for them to grow over time. Since stock market prices
have historically risen in value over time, this approach can be profitable while also reducing investment fees.
---------------------------------
Economic terms Recession
Normally, the economy grows over time. A recession is when the economy has negative growth for two quarters or more — over six months.
---------------------------
Bull and bear markets
A bull market is an extended period of rising investment values, often lasting years. A bear market is an extended period of investment losses. Historically
bear markets have not been as long-lasting as the bull markets that follow them. Even so, during these stretches the right strategies can help protect your
income.
---------------------
Correction
Usually applied to the stock market, a correction occurs when prices fall at 10% from their previous high. The term usually refers to the market
“correcting” its course when stocks are considered overpriced.
Rally
This is when stocks and other securities experience a sustained period of rising prices, typically after taking a big loss.
----------
JOB INTERVIEW RULE 7/38/55
NOTE: In a job interview, your body language .Your posture is doing 55% of the job.
38% is related to your tone, voice, and accent. and about just
7% is related to content meaning your answers, explanitions to question
==============
Financial Literacy At: Knowledge Financial Group - knowledgefinancialgroup.com
Low literacy rates dramatically impact the lives of many people, demanding they work harder, take more time to pay debts and, sometimes settle for less
and earning less at workplace..
Lack of financial education makes it difficult to understand bank statements, financial statements, credit card agreements, ways to invest and other
financial documents.
People who are lacking of competency in financial literacy face serious repercussions, such as managing debts, defaulting on loans easily, and
experiencing difficulty managing income, and investments.
---------------------
Investment Knowledge And Warning..
Before investing in a mutual fund or ETF, carefully consider the fund's investment objectives, risks, charges and expenses. For a prospectus containing
this and other important information, contact the fund or contact Client Services representative. Please read the prospectus carefully before investing.
Investments in fixed-income products are subject to liquidity (or market) risk, interest rate risk (bonds ordinarily decline in price when interest rates rise
and rise in price when interest rates fall)
----------------------
Modernize your investing experience with the help of: Knowledge Financial Group -
Research potential investments, and confidently place trades on your phone, tablet or desktop.
Visionone Capital Management.
More research for more informed investments
Get a deeper understanding of potential investments in no time with real-time market updates with Visionone Holding Company.
Fruital Investment Group, Visit our Education Center at: Knowledge Financial Group to expand your investing knowledge
with learning tools and then solidify your new skills. Research, tools and resources are sometimes provided by unaffiliated third-party sources.
-----------------------
At: Visionone Holding Company and certainly at: Knowledge Financial Group we believe knowledge is one of an investor's best assets. That’s
why we provide a full range of educational resources.
---------------
Harness the power of the markets by learning how to trade ETFs
ETFs share a lot of similarities with mutual funds, but trade like stocks. Discover how ETFs can help you gain the advantages of diversity with a basket of
holdings, Femkonsa Capital Investment.
----------------------------
Understanding the basics of ETF'S
Exchange traded funds (ETFs) are baskets of securities that trade intraday like individual stocks on an exchange, and are typically designed to track an
underlying index. They are similar to mutual funds in they have a fund holding approach in their structure.
Each ETF is usually focused on a specific sector, asset class, or category. ETFs can be used to help diversify your portfolio, or, for the active trader, they
can be used to profit from price movements. In addition, since ETFs are traded on an exchange like stocks.
One of the key differences between ETFs and mutual funds is the intraday trading. Mutual funds settle on one price at the end of the trading day, known
as the net asset value, or NAV. ETFs are traded on the exchange during the day, so their price fluctuates with the market supply and demand, just like
stocks .
---------------------------
Trading ETFs
Liquidity: The ETF market is large and active with several popular, heavily traded issues. This makes it easier to get in and out of trades. However, liquidity
varies greatly, and some narrowly focused ETFs are illiquid.
Choices: There is a huge variety of ETFs to choose from across different asset classes, such as stocks and bonds. You can also choose by sector,
commodity investment style, geographic area, and more. Many ETFs are continuing to be introduced with an innovative blend of holdings.
------------------------
Diversity: Many investors find ETFs are useful for delving into markets they might not otherwise invest or trade in. Since they are baskets of assets
and not individual stocks, ETFs allow for a more diverse approach to investing in these areas, which may help mitigate the risks for many investors.
Commissions and Fees: ETFs typically trade by commission, however, TD Ameritrade offers access to an extensive list of commission-free ETFs. In
general, an ETF tends to be more cost-efficient than an actively managed mutual fund, because of its indexed nature. This often results in lower fees.
========
Index Funds 101
You’ve probably heard of index funds. Much like other mutual funds and exchange-traded funds (ETFs), index funds consist of a basket of assets
designed to mimic the performance of an index. But index funds are passively managed.
-------------------------
Index Fund?
Index funds are mutual funds without the “what to own” decisions of active management. There are many types of index funds, all designed to track the
movements of various sectors, markets, asset classes, or industries. Many top index funds are based on the S&P 500 Index (SPX),
There are also index funds that focus on sectors, such as technology, industrials, materials, real estate, healthcare, transportation, communication,
energy etc.
Because index funds aren’t actively managed, they’re often referred to as “passively managed.” That means they follow an underlying index, so there’s
less need for the manager to buy or sell components (unless the index itself changes).
That means fees can be kept down. Index funds typically have low expense ratios compared to actively managed funds, where more buying and selling
decisions are required to meet the goal of outperforming an index. Plus, index funds can help diversify a portfolio without single-stock risk.
-------------------
Lack of Retirement Planning Priorities
A man reaching 65 today will on average live to 84.3 compared to a woman’s 86.6-year lifespan, according to the Social Security Administration. With
women having longer lifespans, the amount of savings needed for retirement grows.
Single women of all types — unmarried, divorced and widowed— from age 44 to 64 are underprepared for retirement. IRA and 401(k) balances fall short
compared to male equivalents. Single and married women tend to focus on priorities other than retirement, like paying for their children’s needs and
owning a house.
One of the worst outcomes of not prioritizing savings is missing opportunities to leverage time in your favor. Money kept in interest-bearing accounts for
years can grow into a substantial asset. Employer-offered accounts include tax advantages and sometimes match plans that double savings.
----------------------------
Financial Literacy Is So Important
Few are prepared as financial decision making grows more complex
You can take action in your changing your financial trajectory right away by starting with these steps:
------------------------
Financial Literacy in Decline
In past generations, cash was used for most daily purchases; today, it's rarely flashed—particularly not by younger shoppers. The way we shop has
changed as well. Online shopping has become the top choice for many.
Meanwhile, credit card companies, banks, and other financial institutions are inundating consumers with credit opportunities—the ability to apply for
credit cards or pay off one card with another. Without the proper knowledge or checks and balances, it is easy to get into financial trouble.
----------------------
Learn your credit score
You can get a free annual credit report at AnnualCreditReport.com, which is authorized by federal law as the official site for free annual credit reports. Then
purchase your actual credit score from one of the three credit bureaus.
Keep a record of your personal debt
By writing down paid off debts, you can track your progress and celebrate small victories.
---------------
Make a budget
Paying off debt will be easier once you start setting limits for yourself and recognizing the difference between needs and wants.
---------------
Open a savings account
With a few online banking clicks, you can set up automatic deductions from your direct-deposit debit card to an interest-earning savings account.
---------------
Pay overdue bills
Stop ignoring debt collectors and find out if you can negotiate affordable payments, rather than racking up more late fees.
--------------------
Plan for retirement
Consider options for funding your retirement and securing your financial future. Talk to a financial advisor about your current situation and how to start
planning for retirement now. From contributing to a 401(k) plan to buying an annuity to rebalancing your investment portfolio
The level of financial literacy varies according to education and income levels, but evidence shows that highly educated consumers with high incomes
can be just as ignorant about financial issues as less-educated, lower-income consumers (though, in general, the latter do tend to be less financially
literate). And it seems consumers are hesitant to learn.
---------------
Savings and investment options are more complex
Consumers are also being asked to choose among various investment and savings products. These products are more sophisticated than in the past,
requiring consumers to choose among different options that offer varying interest rates and maturities, decisions they are not adequately educated to
make. Deciding on complex financial instruments with a large range of options can impact a consumer’s ability to buy a home, finance an education, or
save for retirement, adding to the decision-making pressure.
Rule 40/40/40 = Work-week 40 hours – 40 Years And Retired at 40% of what you used to make.
-------------------
Remember that Social Security is designed to replace no more than 40% of pre-retirement income.
-------------------
The 4% rule: Today, 4% is considered a safe withdrawal rate from retirement income.
------------------
According to studies, a 4% initial withdrawal rate coupled with annual inflation adjustments should allow you to make
it through a 30-year retirement without depleting your savings.
------------------------
The earlier people start investing, the better it is - More compound interest for them. - DCA = Dollar Cost Average
works in your favor.
--------------------
Make informed choices, informed decision about your investments and your retirement saving plans.
----------------------
To live retirement on your terms, you need a plan, and a partner who knows how to help you build it — it’s a free
benefit offered by your employer.
---------------------------
IRA = Individual Retirement Account, or Arrangement
Which for individuals looking for tax deferred savings plan
-------------------------
IRA'S Rollover
Which is proceeds from former employer's plan to be placed to another IRA's plan.
NOTE That: you have 60 days from the date you receive the distribution to open a rollover account and place the
asset in to avoid premature distribution penalties if you haven't reach age 59\1\2 yet
------------------
SEP = Simplified Employee Pension Plan
Which is very attractive to smaller companies, sole proprietors, partnership, S corporation etc.
-----------------
Profit - Sharing Plans
These plans are designed for companies that wish to retain discretion over retirement plan contributions.
-------------
401k's, 403b's Plans
Plan primarily funded by employees but also allowing employer's contributions, match.
As employee if you don't participate, meaning that you are leaving money on the table for your employer to become
richer and you absolutely will become poorer.
=================
-------------------
Remember that Social Security is designed to replace no more than 40% of pre-retirement income.
-------------------
The 4% rule: Today, 4% is considered a safe withdrawal rate from retirement income.
------------------
According to studies, a 4% initial withdrawal rate coupled with annual inflation adjustments should allow you to make
it through a 30-year retirement without depleting your savings.
------------------------
The earlier people start investing, the better it is - More compound interest for them. - DCA = Dollar Cost Average
works in your favor.
--------------------
Make informed choices, informed decision about your investments and your retirement saving plans.
----------------------
To live retirement on your terms, you need a plan, and a partner who knows how to help you build it — it’s a free
benefit offered by your employer.
---------------------------
IRA = Individual Retirement Account, or Arrangement
Which for individuals looking for tax deferred savings plan
-------------------------
IRA'S Rollover
Which is proceeds from former employer's plan to be placed to another IRA's plan.
NOTE That: you have 60 days from the date you receive the distribution to open a rollover account and place the
asset in to avoid premature distribution penalties if you haven't reach age 59\1\2 yet
------------------
SEP = Simplified Employee Pension Plan
Which is very attractive to smaller companies, sole proprietors, partnership, S corporation etc.
-----------------
Profit - Sharing Plans
These plans are designed for companies that wish to retain discretion over retirement plan contributions.
-------------
401k's, 403b's Plans
Plan primarily funded by employees but also allowing employer's contributions, match.
As employee if you don't participate, meaning that you are leaving money on the table for your employer to become
richer and you absolutely will become poorer.
=================
Financial Education is essential to financial freedom and economic security.
Professional education is essential to feel independent
Academic education is essential in current life ----
--- Note. Investing; When investing, invest for cash-flow, instead of capital gains where you have to sell assets to
realize gains.
--- Note. Investment; down market, bad market, slow economy offer great opportunity if you really know what you are
doing.
Professional education is essential to feel independent
Academic education is essential in current life ----
--- Note. Investing; When investing, invest for cash-flow, instead of capital gains where you have to sell assets to
realize gains.
--- Note. Investment; down market, bad market, slow economy offer great opportunity if you really know what you are
doing.