Who Pays for Medicare?

Who Pays for Medicare?

Taxes pay for the entirety of Medicare part A. For the optional or supplemental policies which fall under the Medicare moniker, a regular premium may be due, but it’s still better than what premiums would look like if there were no Medicare. The Social Security Administration (website—here), which is funded by taxes deducted from your paycheck under FICA, or as part of the “self-employment tax,” administers both Social Security and Medicare. Continue reading...

What is the Rectangle Top (Bullish) Pattern?

What is the Rectangle Top (Bullish) Pattern?

The Rectangle Top pattern forms when the price of a security is stuck in a range bound motion. Two horizontal lines (top: 1, 3, 5) and (bottom: 2, 4) form the pattern as the security bounces up and down between support and resistance levels. Depending on who gives up first ­ buyers or sellers ­ the price can breakout in either direction. This pattern is commonly associated with directionless markets. Usually the pattern performs better when there is a strong uptrend leading into the formation. Continue reading...

What is a Bitcoin Fork?

What is a Bitcoin Fork?

The code for most cryptocurrencies is open-source, and the community operates by consensus, so sometimes newly modified code is released that is adopted by some, creating what’s called a fork. A Bitcoin Fork is when the blockchain, made up of interconnected computers holding a distributed and permanent record of all bitcoin transactions up to that point, is offered a modified currency protocol that is adopted by some of the Bitcoin community, which creates a “fork” in the previously longitudinal history of the ledger (i.e. “a fork in the road”), where one ledger continues to grow based on the changed protocol, and one ledger continues to grow with the old protocol still intact. Continue reading...

What is Weighted Average?

What is Weighted Average?

A weighted average is a calculation considers the relative importance or relevance of a piece of data. Weighted averages multiply numbers in the average by a predetermined factor, like time, that enhances the relevance given to the number. One example of a weighted average is the Exponential Moving Average (EMA), an alternative to the Simple Moving Average (SMA) line which gives greater weight to the more recent data. SMAs are effective in their simplicity, but their efficacy is most closely tied to how they are used. Continue reading...

What is Dilution?

Dilution is the disassociation of value from current common stock shares due to the issuance or conversion of additional shares of the same company into the market, causing value to be reallocated. If a company issues a follow-on (aka Secondary) issue of shares, or if many holders of convertible shares decide to use their conversion privilege, the share price will be diluted. Each share’s value will decrease because there are now an increased number of shares dividing up the same amount of earnings that the company generates. Continue reading...

What is an Account Number?

An account number is a serialized identifier which is ascribed to a particular account holder or account at a financial institution, retailer, or other entity. Account numbers may include letters or numbers and may be of various length, but they usually exceed 5 characters. An account number is a way for a company or organization to uniquely identify the accounts associated with each individual customer. Continue reading...

What are Accelerated Benefits?

What are Accelerated Benefits?

Some life insurance policies allow for death benefits to be accelerated as living benefits under certain conditions. Accelerated benefits are often included in life insurance contracts, but it is possible that they can also be added as Riders for an additional fee. Riders are addendum to a contract that contain additional contractual provisions. What an accelerated benefits rider stipulates is that if certain conditions are met, a portion of the death benefits on a life insurance policy can be paid to the insured person during their lifetime. These conditions may be that the insured person has been diagnosed with less than 12 months to live, or that they have another serious health condition which is covered. Sometimes this includes the payment of monthly benefits if a person requires long-term care. Continue reading...

What are the Tax Implications of Owning Bonds?

What are the Tax Implications of Owning Bonds?

Some bonds receive preferential tax treatment. The interest you receive is fully taxable, unless the bonds are issued by municipalities, states, federal governments, or corporations with special tax-exempt statuses (such as school districts, infrastructure facilities, hospitals, and so on). The first very general rule of thumb – if you reside in a certain municipality and buy bonds of that municipality, the interest is not taxable. Continue reading...

What is standard deviation?

What is standard deviation?

Standard Deviation is a measurement of how far from the average (mean) the majority of a data set lies. Standard Deviation is a measure of variability, and it is on a different scale for each data set being measured; there is no “standard” standard deviation. It is possible to normalize it for comparison to other data sets using measurements like r-squared and the sharpe ratio. The number arrived at when computing standard deviation is going to reveal the distance, in terms of one of the quantifiable variables being observed, from the average, in either a positive or negative direction, within which 68% of the data set falls. Continue reading...

What is “adding to a loser”?

What is “adding to a loser”?

“Adding to a loser” describes continuing investment in a stock or fund that has continued to decline. Continuing to invest when it is going down in value can be a solid play up to a point. If you remain bullish on the company or fund, you may be getting a great deal on the shares that you purchase. When the price rebounds, you will have full participation in the upside with more shares than you would have otherwise. Continue reading...