Category: Finance and Investing 101

Many believe that income tax refunds are not beneficial to anyone but the government. By allowing more money than necessary to be deducted from your paycheck in taxes each week, these investors state that you are essentially giving the government (via the IRS) an interest free loan. Today, we will…

A credit-builder loan doesn't hand you cash upfront. You make fixed monthly payments — usually $25 to $150 — into a locked savings account, the lender reports every payment to the credit bureaus, and you get the money back (minus interest) once the term ends. It's a strange-sounding product, but…

Anyone can put up to $19,000 a year into a 529 plan for a single child without touching the federal gift tax exclusion — $38,000 for a married couple. Want to front-load it? You can "superfund" up to $95,000 in one year ($190,000 joint) by treating it as five years…

After a year of stock-picking and sector ETF trading that took more time than it was worth, I switched to a simple 3-fund index portfolio — and I haven't looked back. The strategy is straightforward: hold one US total market fund, one international fund, and one bond fund. Rebalance quarterly.…

The IRS has provided a $500 increase in tax deductible 2013 401(k) and IRA contribution maximums. Employer sponsored 401k plan contribution maximums have risen from $17,000 to $17,500. IRA limits have risen to $5,500 from the 2012 maximum of $5,000. These increases may not seem like a lot at first glance but over a number…

Just like any other business minded person, financial (investment) advisors and planners are in it for the money – they have to make a living, and they’re doing it on your dime.  Don’t ever doubt that they are terrific salespeople as well as financial advisors. So, taking their word as…

Income from mutual funds and stocks that invest in real estate backed mortgages has never been higher. With returns of 8-15% these alternative investments – when used appropriately – can substantially increase portfolio income and growth. Much of the success of these funds is due to the difficulty that Americans…

When you sell a capital asset — a stock, bond, cryptocurrency, real estate, or other investment — the profit (or loss) is classified as a capital gain or loss. How much you owe in tax depends on three things: what type of asset it was, how long you held it,…

Everyone is now feeling the effects of higher prices and rising costs. Also known as inflation. As consumers, no one likes inflation. However as investors, there are some good ways to profit from rising inflation, or at least buffer your portfolio from falling asset prices. Before we can figure out…

All of us think we know a thing or two about money, but really how good is your financial knowledge? Take this quick quiz to get a gauge of where you stand when it comes to basic financial concepts (answers and ratings are at the end). Q1: Sam earns $2,500 per month working…

I always enjoy reading Barron's annual Top 1,000 financial advisors list. While, I am way too middle class to engage the ongoing services of a financial advisor (most of the top advisors service families/people with more than $5 million in net worth), it's still interesting to note what they are…

The financial news media does it all of the time, don’t they? They assume that the millions of retail or part time investors know all of the terms used on a daily basis. When IBM announced another stock buyback, the financial news channels reported it leaving investors unsure of what…

Annuities have been a viable investment option for many years. However, there is still a great deal of confusion on what exactly they are and how exactly they work. Understanding the concept of annuities can help you to determine if they are right for you, and if so, what type…