Who Can Put Money into an IRA?
There are some income limits and contribution limits on who can contribute to an IRA. Generally speaking, as long as you or your spouse is earning taxable income, you can contribute money to an IRA, be it a Roth or a Traditional IRA. There are limits at which you cannot contribute to a Roth IRA (in 2016, the limit is $132,000 for a single filer and $194,000 for a married couple). There are also income limits at which you are no longer able to deduct contributions to a Traditional IRA, but these are only applicable if you or your spouse has a qualified retirement plan at work. Continue reading...
What are the Withdrawal Rules From My Self-Employed 401(k)?
Individual 401(k)s will have the same withdrawal rules as regular 401(k)s. The withdrawal rules for a Self-Employed 401(k) are identical to the rules for a traditional 401(k). If you want to avoid a 10% early withdrawal penalty, you’ll need to keep the money in your account until you reach age 59½, but if you separate from service after 55 you may be able to make withdrawals penalty-free. If you really need the money early, certain exceptions for disability, medical expenses, 72(t) annuitized distributions, and plan loans can allow you to sidestep the penalty. Withdrawals for any other reason, including hardships, are still subject to the penalty. Continue reading...
What is IRS Publication 530, Tax Information for Homeowners?
IRS Link to Publication — Found Here There are many tax questions when it comes to home ownership, mortgages, equity, federal loan programs, selling a home, and so forth. Publication 530 seeks to address all relevant tax information for this large and important financial asset, which is often the largest purchase they will ever make. Homeowners incur expenses for home equity, mortgage interest, private mortgage insurance, improvements and maintenance, and taxes. Much of this can be deducted. Continue reading...
What is the Series 7?
The general securities licensing test required by FINRA is the Series 7 examination. Member firms who are part of the solicitation of securities which are not managed by other parties. If a representative only solicits securities such as mutual funds and variable annuities which are managed elsewhere, a Series 6 and Series 63 combined would fulfill the licensing requirements in that situation. The Series 7 licenses a representative or broker to solicit the sale of individual securities, such as stocks and bonds, as well as options, derivatives, and private placement. The only securities that a Series 7 does not license an individual to solicit are commodities futures, which require a Series 3. Continue reading...
What is the Difference Between a Growth and Value Stock?
Growth stocks tend to be younger companies focused on using capital to fuel more growth, whereas Value stocks have perceived safety through consistent earnings, cash on balance sheets, and dividends. Neither growth nor value stocks are the best performers for all time, and the reality is that over long stretches of time, performance tends to revert to the mean. Categorically, growth stocks tend to be younger companies that focus capital on investing in expanding operations - hiring new personnel, hiring more employees, entering new markets. Continue reading...
What are credit derivatives?
Stemming from the hedging strategy of Credit Default Swaps, an entire speculative derivatives market continues to grow, in which tranches of credit risk and indices are traded. With the ballooning of consumer credit in recent years, it is only natural that a credit derivatives market would follow it. In essence, the risk associated with a loan or bond is separated from the actual asset and is passed on to a counter-party for a premium, and then other market participants become involved, perhaps in the form of futures contracts or other derivatives. Continue reading...
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 are Core Mutual Funds?
Core mutual funds represent the middle ground between Value and Growth, but are not the same as Blend funds. Core Mutual Funds are in between Growth and Value funds. In other words, companies in their portfolio have Price to Earnings ratios which are higher than those of Value companies but lower than those of Growth companies. This category is essentially based on the 9-box Morningstar categorization system, which separates equity funds into Small, Mid and Large Cap on the vertical axis and Value, Core, and Growth on the horizontal axis. Continue reading...
What is a Dividend?
A dividend is an income-like payment to an investor who holds stock. Dividends tend to be paid by companies who are well established and are not retaining their earnings for capital projects. There are several kinds of dividends, but the most common is the cash dividend. You are not likely to see dividends paid by companies whose stocks are categorized as Growth stocks. Growing companies are going to be ploughing money back into their company for years. Well-established companies tend to distribute some of their profits as dividends because it allows them to retain loyal shareholders and keep the price of the stock fairly steady. Continue reading...
Stocks and ETFs: AI Real Time Patterns
The best way to make money with pattern trading is to use our premium tool, Real Time Patterns (RTP Stocks, ETFs) You will get real time signals to buy and/or sell stocks or ETFs based on intraday price information. RTP analyzes 39 types of patterns for stocks, penny stocks, and ETFs in real time with the following time-frames: 5min, 15 min, 30 min, 1hour, 4 hours, and 1 day. To access, from the menu bar, simply click the Trading tab, then click on Real Time Patterns. Continue reading...