What Happens If I Withdraw Money From My Cash-Balance Plan Before I Retire?

What Happens If I Withdraw Money From My Cash-Balance Plan Before I Retire?

In general, this won’t even be an option for many. Cash balance plans do not permit partial withdrawals. If you have separated from service at the employer, you can take your entire vested amount with you. You can cash out your balance and pay income taxes on it, as well as a 10% IRS penalty if you’re younger than 59 ½. This penalty may also be avoided if you separated a from service after age 55; these rules are the same for 401(k)s and other qualified plans. Continue reading...

What is a Certified Financial Planner?

A Certified Financial Planner (CFP) is a financial advisor capable of investment and insurance/estate planning. For an advisor that wants the “CFP” designation, they must complete the CFP Board’s initial and ongoing certification requirements, which include extensive exams in the areas of financial planning, taxes, insurance, estate planning and retirement. They must also complete continuing education courses. Continue reading...

What Else Should I Know About Stocks?

There are plenty of other things that you should know about stocks, which are hard to categorize. In this sub-topic, you will find a wide array of questions related to stocks. Frankly, we could not categorize every question within this sub-topic, but still feel that these questions are very important and arise with great frequency. Feel free to pursue this collection of useful and interesting articles. Continue reading...

What is an Abandonment Clause?

An Abandonment Clause primarily refers to maritime insurance contracts in which a lost vessel can be replaced without the expectation of recovery or salvage, or the terms by which a construction contract or lease agreement can be dissolved. This is not to be confused with an Abandonment Option contract between a financial advisor and his or her client. It can also refer to a frequently used clause in construction law, in which the contractors define an abandoned project and give their counter-parties the right to move on and find another contractor to finish the job. Continue reading...

What is Accrued Revenue?

Revenue that has not yet been received for goods or services already rendered may be documented as Accrued Revenue. Accrual accounting allows a business to put the payments due to it for good and services already rendered into the Assets column of its books. If no invoice or payment plan is established, it sits in the Accrued Revenue line; if so, the item goes into Accounts Receivable. Accrual accounting is different than cash accounting in this regard: cash accounting will only make an entry on the books when cash or goods are exchanged. Accrual accounting is actually mandatory for publicly traded companies with revenues over $5 million who are based in the US, per SEC regulations. Continue reading...

If I Want to Establish a Keogh Plan, Do I Have to Establish One for All Employees of My Business?

Keogh plans have minimum eligibility requirements that will probably include most of your employees, but not necessarily all of them. If an employer established a Keogh Plan, eligible employees must be allowed to start a Keogh Plan account as well. Eligibility requirements include: being over 21 years of age and having worked at least a year as a full-time employee for the employer, where full-time is defined as working over 1,000 hours in a year. Seasonal workers, non-resident alien employees, union employees, and non-working partners or owners in the business can be excluded. Continue reading...

What is Return on Sales?

Also called net operating margin, return on sales can indicate how well a company makes use of its sales revenue. By dividing Operating Profit by Net Sales, we can arrive at the Return on Sales. Essentially what we’ve done is broken down profits on a per sales basis. We can see what percentage of sales ends up as profit, or, on the other side of the coin, how much profit is generated per unit of sales. This can be useful for a comparison of companies of different sizes, because it excludes their assets, capital structures, taxes, and interest. Continue reading...

What is Federal Debt?

What is Federal Debt?

Federal debt is the money owed by the government. The primary source of this debt is Treasury Bonds (Notes), which constitute debt obligations. About 25% of the current national debt is owed internally between different government agencies, mostly to the Social Security Trust Funds. The Federal Debt is also, and perhaps more commonly, referred to as the National Debt. Currently the debt is approximately $19 Trillion. Continue reading...

What is a Jumbo Loan?

A jumbo loan is a mortgage loan that exceeds the conforming loan limits set by the Office of Federal Enterprise Housing Oversight. For borrowers with low debt to income ratios and good credit scores, jumbo loans are often utilized for purchases of larger or luxury homes. Often times jumbo loans are too large in size to be guaranteed by Fannie Mae and Freddie Mac, and are securitized in other ways. Continue reading...

Can I Use Standard Online Wills?

Can I Use Standard Online Wills?

While online will templates may be useful for those with straightforward estate plans, they lack customization and legal guidance. To avoid the risk of creating a contested or unenforceable will, individuals should only use templates from trusted sources and consult an estate planning attorney for complex estate plans, significant assets, or unusual circumstances. Ultimately, a well-crafted will provides peace of mind and security for loved ones, and individuals should take the time to make informed decisions when creating a will. Continue reading...