How Do I Invest Money in My Cash-Balance Plan?
Employees do not have control of their own accounts in a Cash Balance plan, but they can possibly influence how much is contributed each year. Contributions to a Cash Balance plan should not be adjusted more than once every few years, but they can be adjusted. In small partnerships without many, or any, employees, there is likely to be more flexibility, or willingness for the owners of the business to jump through the hoops required to have the plan re-worked. Such changes could require a new plan document. Continue reading...
What Are the Contribution Limits For My Thrift Savings Plan?
Contribution limits for the TSP are the same as regular 401(k)s. Employees and employers using the TSP will have the same contribution limits as 401(k) plans. An employee can defer up to $18,000 a year in 2016, plus a $6,000 catch-up deferral if the employee is over 50 years old. The employer can contribute up to a maximum total balance of $53,000 (or $59,000 if the employee is over 59 ½), including employee deferrals. There is a standard 1% employer flat contribution, and some Federal employees will also receive a match. Continue reading...
How Can I Use the Money From My 529 Plan?
You can technically use it however you see fit if you are willing to pay the 10% IRS penalty. Money from 529 Plans can be used for tuition, books, supplies, room and board and, as of recently, computers and electronic necessities. Always check if you’re not sure that an expense is covered by the 529 plan. Money used for anything other than the specified costs will be subject to federal income taxes and a 10% penalty on the earnings. You can also transfer the account to another beneficiary or yourself if you or someone else will need the money for college one day, without incurring any penalties or taxes. Continue reading...
How Much Should I Withdraw from my Retirement Accounts Once I Retire?
A general rule-of-thumb is to withdraw no more than 4% of your retirement savings per year. Since your retirement money has to last you for the rest of your life (and in most cases, your spouse’s), it’s extremely important to carefully calculate how much you can withdraw each year without risking running out of money. Retirees should avoid withdrawing more than 4% of your total retirement assets in any given year, and that’s assuming that your assets are invested for growth over time (with some equity exposure). Continue reading...
A+/A1 — credit rating
A+ — S&P / Fitch A1 — Moody’s In the spectrum of ratings given to bonds and companies, A+/A1 is a very good rating to get, even if it is the 5th rating from the top. The Big Three ratings institutions, which are Fitch, Moody’s, and S&P, give ratings for creditworthiness after inspecting the books of companies who issue bonds. There are credit ratings given for companies and credit ratings given to bond issues. Continue reading...
Who is an Assessor?
An Assessor is a government employee who finds the value of properties and other assets for tax and insurance purposes. The assessor’s office is responsible for coming up with the assessed value of real estate property in a municipality, for the purpose of assessing property taxes. Assessors may have other roles, but this is the main one. Considering that assessors have to determine a value of every piece of real property in their district, it can certainly be an overwhelming task. Continue reading...
What are Fibonacci Extensions?
In Fibonacci line analysis, chartists attempt to predict how far a trend will go in a single direction, despite some minor pullbacks that do not break the overall, stronger trend (behavior known as retracements). Trends can be upward or downward and still experience this phenomenon. Fibonacci extensions are estimations of the next high after an initial push and retracement, using Fibonacci sequences as guidelines. Some investors believe that, like many naturally occurring systems in nature, mark... Continue reading...
What is a Hybrid REIT?
A Hybrid REIT blends the two major classes of REITs (Equity REITs and Mortgage REITs) to give the investor increased diversification with one investment. A Hybrid REIT is a marketable security much like a mutual fund, invested in both Equity and Mortgage real estate investments. The equity part includes income-producing properties, in which the REIT company owns equity in the property. The mortgage portion consists of mortgages or mortgage-backed securities, in which the REIT earns revenue from debt interest payments. REITs must distribute 90% of their revenue each year to their shareholders (in the form of dividends), and this makes them a high-yield income investment. Continue reading...
What is a Secondary Offering?
A secondary offering is the sale of a large block of previously-issued, privately-held stock, which actually requires registration with the SEC, but does not raise capital for the company which issued the shares originally. A secondary offering is a non-dilutive sale of existing shares which were previously held by one, or a few, investors. The proceeds of the sale go to the sellers of the shares and not to the company which issued the shares. Continue reading...
What is an "Ex-Dividend"?
Ex-Dividend is a classification on a stock that indicates the dividend payable is to the seller of the stock, not the buyer. If a stock is sold on the ex-date or after, the seller will receive the dividend payment. More articles about Dividends — Found Here Continue reading...