Should I Hold an Annuity Within My IRA?
An IRA already provides the investor with tax-deferred growth, so an annuity will not provide any additional tax benefits. The investor may be interested, however, in the insurance guarantees provided by the annuity for a cost. Generally speaking, you shouldn’t. One of the biggest benefits of an Annuity is its tax-advantaged status; namely that the earnings on your investment grow tax-free until withdrawal. An IRA, of course, has the same tax treatment. Therefore, having an Annuity within your IRA will not provide you with any additional tax benefits. Continue reading...
How Can I Use the Money From My Coverdell ESA?
Coverdell ESA accounts can be used to cover educational expenses. Similarly to a 529 Plan, the money from a Coverdell ESA can only be used for qualified educational expenses. However, the definitions for “qualified” are broader with this plan, and can be used for educational expenses from Kindergarten through high school, in addition to postsecondary (college) expenses. The downside is that Coverdell’s have a low contribution limit of only $2,000 per year. Continue reading...
Am I Eligible for Social Security Benefits?
Social Security will pay benefits to those who have paid into the system, their beneficiaries in many cases, and also to some disabled individuals who have not paid into the system. In general, Social Security Benefits will only be paid in cases where individuals paid into the system. The exception is Supplemental Security Income (SSI), which is actually paid from the general tax revenue of the government, and not the actual Social Security trust funds, though it is administered by the Social Security Administration. Continue reading...
What is Whole Life Insurance?
Whole Life Insurance provides lifelong death benefit coverage as well as a tax-deferred savings account. A large portion of your premium goes into the general account of the insurance company, and this increases the cash value available to the policy holder at a growth rate dependent on the investment and sales experience of the company. Every dollar and amount of interest which is credited to the policy cash value is vested with the policy-owner and will not decrease. Continue reading...
What is Publication 503, Child and Dependent Care Expenses?
IRS Link to Publication — Found Here Publication 503 covers tax deductions and filing guides for individuals who pay for childcare. It does not address the employer side of things, for those who provide childcare as a fringe benefit, which is covered in IRS 15-b. Tax deductions are available for parents who have to pay for child-care so that they can work at a job and earn income. Publication 503 describes the circumstances under which this type of deduction is allowed and the filing requirements for it. Continue reading...
What is a Bank Guarantee?
When a lending institution offers a Bank Guarantee, they are reducing the risk involved in a transaction by guaranteeing payment to the seller. Bank Guarantees often come into play with deals made internationally, where the participants in the deal prefer to have some assurances before they do business. The guarantee acts as insurance to protect the parties involved in transactions where they are not fully able to assess the strength and reliability of the other, such as when small companies bid for projects or when bids for a job come-in from around the world. Continue reading...
What is Accounting Profit?
Profit is a term that is synonymous with earnings and net income, and it is basically what is left of revenues after expenses. All of these are basically computed the same way: gross revenue minus the cost of goods sold, business expenses, and taxes. Some variations on each of these will choose to look at the numbers before certain expenses, such as taxes. For example, “gross” accounting profit could be defined as revenue minus cost of goods sold, while “operating” profits would also subtract the costs of business expenses and operations, and “net” profits would also subtract taxes. Continue reading...
What is Securitization?
Securitization is to turn an asset which would otherwise not be a liquid, tradable security, into one. Simply put, securitization turns assets into securities. The most common example when discussing securitization is mortgage-backed securities, in which the cash flow of interest and principal payments on mortgage loans has been pooled, cut up, and distributed for sale in the form of marketable securities which can be held by an everyday investor. The bank or institution who sold the mortgage-backed securities receives cash which they can loan out to more home-buyers. Continue reading...
What is market equilibrium?
Market Equilibrium occurs when fluctuations between supply and demand balance out, keeping prices relatively stable. This trend appears relatively horizontal or sideways when charted. Both price equilibrium and quantity equilibrium should meet at the same point where the supply and demand curves meet on a chart. According to the Law of Supply, with all factors being equal, if the price of a good or service increases, the supply of that good or service will increase. If demand doesn't meet it, the price of that good or service must come down; this increases demand but might cause a shortage in supply, which might drive prices back up, and so on. Continue reading...
Who Are We?
Tickeron is an interactive marketplace that provides sophisticated AI-driven trading tools to investors and traders. Continue reading...