You can make your life easier and ensure that you don’t miss any tax deductions or tax credits if you organize your record-keeping system early in the year and keep it up to date. Why You Should Keep Good Records People are much less likely to keep all their relevant records in one place when much of their financial lives exist online or in electronic form. This isn’t to say that the record-keeping methods you adopt can’t be electronic....
Management of an LLC An LLC is a limited liability company whose owners are called “members.” An LLC may be composed of one or more members: a single-member LLC or a multiple-member LLC. (These two types of LLC’s are taxed differently, which is why they are separated here.) In the same way as any other type of business, an LLC must have one or more individuals who manage the company, acting as the board of directors does in a corporation....
Reducing your motorcycle plan to comprehensive only used to be the only way to handle bike insurance over the winter months. As a result, insurance companies found that this led to more shopping around by people for a cheaper deal. More and more companies are moving away from offering comprehensive-only plans for bikes, but you may still be able to find it. Some lenders mandate that you carry full coverage at all times....
An Explanation of Mutual Funds A mutual fund is something like a bucket into which many investors place their money. They become shareholders when they do so. A manager then invests the money in securities. They must be registered with the SEC. Each of the shareholders equally gains or loses based on how the fund’s assets perform. Most of these funds are open-end funds. This means that new investors can buy in at any time....
Paying down your debt early is often a great idea. However, things might not work out exactly as you expect them to if you put this payment toward your mortgage in one lump sum. Before you send funds, learn how extra payments affect the following: Your total interest costs The time it takes to repay your loan Your monthly payment Interest Costs Making a large early payment on your mortgage will reduce the amount of interest you pay on your loan....
The survey results, which broke down very similarly when global participants were included, show just how uncertain people are about the economic impact of omicron, which was designated a “variant of concern” by the World Health Organization Friday, triggering widespread concern throughout the financial markets. Oil prices plunged 13%, the Dow Jones Industrial Average fell more than it had on any single day in over a year, and 10-year Treasury yields sank as fears that current vaccines may not be as effective against it spurred worries that governments could restore restrictions, sharply slowing economic growth....
Other income includes earnings other than wages or income from self-employment, retirement income, investments, foreign income, and canceled debts. Other income must be reported on Schedule 1 and Form 1040, and it’s taxable. Below is Form 1040. Who Uses Other Income on Form 1040? You typically have to report other income if you receive money or goods that aren’t included on a W-2 or on most 1099s. Think prizes, awards, jury duty pay, and lottery winnings....
Keep reading to learn all the basics of payroll, from the outline of the payroll process to some options for businesses who would rather let someone else deal with it all. What Is Payroll? Payroll is the function of a business paying its employees. It includes distributing money in the form of checks and direct deposits. It also includes keeping records on those payments and paying taxes on behalf of those employees....
Hiring Employees An employee is a person who works in the service of another person under an express or implied contract of hire, under which the employer has the right to control the details of work performance (Black’s Law Dictionary). When you hire an employee, you get the advantage of being able to completely control and direct that person’s work during work time, to train the person in the way you want the job done, and to require that person to work only for you....
How Do I Start Researching Stocks? If you’re like most people, you wouldn’t make a major investment in a product without first doing some research. You wouldn’t buy a car, for example, without first looking into your preferred model, its price, its value, and its closest competitors. The same applies to stocks. You shouldn’t invest in stocks without knowing something about the other companies in the same industry. Owning stock is nothing more than owning a piece of a business....
But if most workers who aren’t that far away from retirement have just $100,000 saved, they’re not going to achieve that $1 million goal by the time they reach 65 or even 75 years of age—even with aggressive contributions and investments. Which means they’ll need to continue working well into retirement to avoid running out of money. If you want to downshift and give yourself a traditional retirement, rather than working until you die, you’ll need to take some steps right now....
In some cases, volunteer roles can be competitive, so sending a cover letter can help you stand out. Plus, the time required to train and supervise volunteers is precious to these often short-staffed organizations. Candidates who can show they have relevant experience and/or demonstrate that they’re likely to volunteer for a long period of time (not just drop in for a single afternoon) will be appealing to the organization. As with a paid position, you’ll want to use your cover letter to show why you’re a good fit for the role....
With an accomplishments section, you can demonstrate to employers that you are an achiever, someone who adds value to a company, and someone who goes beyond the basic job duties. Here are some tips for writing an accomplishment section for your resume: Brainstorm Before writing your resume, spend some time listing all of your work-related accomplishments. Think about the praise you’ve received, awards and promotions you’ve been given, and any special responsibilities you’ve handled....
A self-directed brokerage account is an option that opens up access to a network of mutual funds. Some SDBAs may let you invest in stocks, bonds, and exchange-traded funds, as well. When you place your retirement savings in an account like this, your investments are allocated to investments apart from those available in the core plan. According to Aon Hewitt, approximately 40% of retirement plans offer SDBAs. Hewitt also found that only around 3% to 4% of retirement plan participants with access actually use this option....
What is a Non-Stock Corporation? A non-stock corporation is a corporation (either for-profit or non-profit) that does not issue shares of stock. Most non-stock corporations are non-profits, but they don’t have to be. A non-profit corporation is non-stock by definition since the purpose of the non-profit corporation is not to pay shareholder dividends. Non-profit corporations often have members, but these members are not owners and they don’t share financially from their membership....
After talking through some of the finances around the move, we agreed to split the mortgage payment and other expenses equally. But when I told my friends and family, they weren’t thrilled with the arrangement and said that if it wasn’t my house, I shouldn’t be paying it off. They think I shouldn’t pay the mortgage or other housing expenses until we’re married and I’m on the deed. It has me rethinking the whole thing....
Drawing a mental line in the sand can help curb spending, but there’s something else you can do to keep your budget on track. You could ask your bank to impose a debit card spending limit (or a credit card spending limit if you use credit for purchases). Having a debit card spending limit in place can keep you from spending more than you intended, but it’s important to consider the pros and cons first....
Sincerely, Jackie Dear Jackie, First, congratulations on moving in with your partner! This is a new, more serious phase of your relationship, and while having these money conversations with a loved one can be stressful, it’s also a new exciting chapter for you both; try to enjoy it as much as possible. You’ve asked two questions here, so I’ll tackle combining finances first. You don’t say anything about what you envision as “combining finances,” and it means different things to different couples....
Low mortgage rates can create a seller’s market as they spur buyer demand. The promise of lower-cost financing encourages on-the-fence buyers to start shopping for homes, creating bidding wars. These boost home prices and eventually give sellers more power. Of course, a low-rate environment doesn’t always mean you should sell your home. If you’re considering putting your house on the market when mortgage rates are low, think about these factors....
What’s a Sole Proprietorship? A sole proprietorship is the most common form of business organization in the U.S. A sole proprietor business is the easiest business type to start and operate, because you don’t need to formally register your business with your state, unlike corporations or LLCs. If you haven’t registered your business with your state by forming an LLC or other business entity, you’re already running a sole proprietorship. One question that’s often asked is the difference between a sole proprietor and an independent contractor....
