IRS Link to Reporting Guidelines — Found Here Despite how it sounds, this publication is not meant for tourists to the US, but rather for non-US-citizen workers who might be considered either resident aliens or nonresident aliens, or dual-status if they can be considered both within the same year. Non resident aliens do not have to file a return if they did not earn more than the standard annual deduction amount. This guide is relatively short by IRS Publication standards, at only about 20 pages. Continue reading...
MSCI Inc. is a company that is best known for its global indices. MSCI also provides research and pricing capabilities to institutional investors. MSCI was formerly a branch of Morgan Stanley, but grew to be so big that they spun off and formed the independent company, MSCI Inc. Perhaps its best known and used index is the MSCI EAFE, which tracks broad performance of Europe, Asia, and the Far East. Continue reading...
The MSCI World is perhaps the most well regarded index for global stocks. The MSCI World Index is a global cap-weighted index that serves as a good barometer for stock and economic performance of the world as a whole. If you are a global investor, the MSCI World makes for a very useful benchmark for performance. The index is maintained by Morgan Stanley, and has over 1,600 stocks listed in it from all developed markets in the world. It does not include emerging markets or China. Continue reading...
The MSCI ACWI is the “All Country World Index” - providing the broadest measure for global stocks. The MSCI ACWI tracks performance of stocks from all over the world - literally. It includes all markets and gives the broadest picture for how world stocks are performing. Developed markets account for some 75% of total global output, so the MSCI ACWI includes many countries that are not necessarily palatable contributors to world growth. Continue reading...
Bankruptcy court is a special judicial proceeding which determines how a debtor can settle accounts and move on. Bankruptcy courts are always federal, and not state, courts. They were established in the Constitution and given structure by the Bankruptcy Reform Act of 1978. They give debtors a means of moving beyond debts that cannot be fully repaid. There are several kinds of bankruptcy filings (found here — ‘chapter 7-15’, some for individuals, some for businesses, some involving foreign entities or persons operating in the US. Some are for absolution and the dissolution of a business entity, and other filings are requests for partial debt forgiveness and reorganization of the entity. Continue reading...
Several services make it easy to accept bitcoin payments, or a programmer can help you set up your own node. The most convenient way to accept bitcoin payments as a merchant is to use the services made available by exchanges like Coinbase and Bitpay, who make it simple enough to add a button to your website and to accept payments in person via NFC and QR codes. These exchanges have established what is called Full Nodes on the blockchain, which are slightly more efficient than using regular client software on the blockchain, and have optimized them for merchant services. Continue reading...
Commodity indexes are also called commodity price indexes, and they are informational services which reflect the price action in a designated commodity or basket of commodities. Indexes are often tracked by mutual funds or ETFs, and these can be confused with the actual index. Indexes are computed and published by market research firms. They can serve as benchmarks against which the performance of a specific asset or an investment portfolio can be compared, or they can serve as the model that index funds seek to emulate. Continue reading...
A Vertical Spread involves the strategy of buying and selling an equal number of options on the same underlying security with the same expiration date, but different strike prices. Vertical Spreads can be both bullish and bearish, depending on your view of the underlying security. If you use calls, you are constructing a Vertical Bull Spread, and if you’re using puts, you’re constructing a Vertical Bear Spread. Continue reading...
Account managers are the point of contact and liaison between a business and its clients. An account manager is assigned to specific accounts to maintain the customer relationship, provide service, and to ensure that the customer remains client. It is easier and more cost-effective to preserve a long-term relationship with a client and to get their repeat business than to find new clients. This is especially true when the client is a business entity and their business constitutes a significant portion of overall Revenue. Continue reading...
Most pensions will not allow in-service withdrawals but some will allow loans. While you are working for your employer, you typically may not withdraw money from your Defined Benefit Plan. The IRS permits plan loans if the plan administrator permits it. In-service withdrawals are possible after age 62, meaning money can get taken out before separation from service. If you leave your employer before retirement, the funds are usually kept in a Trust until you reach retirement age (or until a specified age at which you can start to receive the benefits). Continue reading...
Blockchain technology is already being used and developed for many important and impressive applications, and much more is yet to be discovered. Blockchains use distributed work to obtain consensus for changes to a distributed ledger. Because of their nature, blockchains are incredibly powerful tools that can be used in many realms and applications. They offer security in that they are almost unhackable; any attempted unauthorized changes to the system are immediately obvious to the entire system because it is built on agreement and consensus among its many nodes. Because this structure gives each addition to the ledger, and the record in the ledger, a high degree of integrity and security, future applications of blockchains are being researched in various fields around the world. Continue reading...
The “buy side” refers to businesses in the financial services industry such as pensions, mutual funds, and asset managers that manage money. Since firms on this “side” of Wall Street tend to be the ones buying and selling securities for their portfolios, when a person works for one of these funds or companies they are said to be on the “buy side.” Research analysts that provide analysis and data to fund managers solely for the purpose of making investment decisions within the portfolio are “buy side analysts.” That research is typically not published for public use. Continue reading...
Cash flow after taxes (CFAT) is nearly the same thing as EBITDA, but with taxes left in. One way to arrive at Cash Flow After Taxes is to take the net income of the business and add in interest, amortization, depreciation and other non-cash expenses. This is one item away from the formula for EBITDA, which also adds tax back in to arrive at the Earnings Before Interest, Taxes, Depreciation and Amortization. Continue reading...
Market Saturation is the point at which there are few consumers that are still interested in buying a product because those who were ever likely to already have done so. Saturation can be said to exist for all similar products in a market. This may call for different strategies which could keep a company going. One is that products can be made to wear out after a certain amount of time and need replacement. Another is that the business can shift its focus to subscription or service-based income. Continue reading...
Withdrawals and loans can be taken out of a 401(k) before retirement, but the money may be subject to penalties, conditions, and taxes. It is quite common that 401(k) funds are needed before retirement, even though the IRS wants you to wait until you’re 59 ½, and will generally want to levy a 10% penalty on any premature withdrawals. Most plans allow employees to take non-taxed loans out on their balance, which may stunt the growth of the account which was intended for retirement, but if the funds are paid back on-schedule, as stipulated in the plan’s loan agreement, the employee can get back on track quickly. Continue reading...
Revenue is a word describing any cash flowing into a business as a result of goods and services rendered. It is sometimes call gross income, and is a representation of income before all expenses. It is notable, though, that revenue only includes receivables in the current period. The Accounts Receivable on the company’ s books may include the entire cost of the goods or services rendered during that period, but the Revenue should generally only reflect the amount that is paid to the company in the current year. Continue reading...
EBIDA is one of the family of earnings metrics which give the analyst, investor, or accountant an opportunity to view earnings, which is synonymous with net income, with a few factors added back into it. In this case, interest payments on debt, depreciation of hard assets on the standard IRS schedules, and amortization of principal debts are all added back into the earnings of the company for the current period. Not to be confused with EBITDA, its more popular counterpart. Continue reading...
457 plans are the only retirement plan that does not require you to wait until a certain age to avoid an IRS penalty on withdrawals. Unlike 401(k)s and 403(b)s, you are allowed to take money out of a 457 Plan before the age of 59½ without a 10% early withdrawal penalty, but only if you’ve separated from service. Separation from service can mean retiring or just leaving to take a job elsewhere. Roth IRAs allow you to withdraw your principal amount early without penalty, but you will incur taxes and penalties if the gains are withdrawn. 457 plans do not have such stipulations. All other retirement accounts require certain exception criteria to be met for the IRS not to penalize you for early withdrawals. Continue reading...
Also known as the debt service ratio, The interest coverage ratio is a measure of how many times a company can pay the interest owed on its debt with EBIT. To calculate it, you simply divide EBIT (earnings before interest and taxes) by interest expense. A company with a low interest coverage ratio means it has fewer earnings available to make interest payments, which can imply solvency issues and could mean a company would be at risk if interest rates go up. Continue reading...
Lifestyle inflation is a term used in personal financial planning for the tendency of people to increase their spending and standard of living right along with any raises and monetary resources, even if it’s is at the detriment of any plans for debt reduction or long-term savings. Monetary inflation describes the phenomenon when more money has no more utility value than a lesser amount used to because the cost of goods is going up. Lifestyle inflation is when people select higher-priced goods and lifestyle spending habits when they have the money available to do so. Continue reading...