The laws concerning a legal residence or primary residence may come into play for purposes of insurance, state taxes, and business matters. Some people have secondary residences, some people choose to remain legal residents of one state while they inhabit another. It can be quite complicated and various statutes may apply, depending on the situation. It can matter for a mortgage loan, for local voting, for healthcare and for business: what is a home? Continue reading...
IRS Link to Publication — Found Here Publication 54 is a guide for those earning income in a foreign country. There are several tax deductions which might be available and several forms and filing practices that one will need to be familiar with when taking employment elsewhere. US Citizens and long term resident green card holders will need to let the IRS know how much they are making even if they are employed in a foreign country. Continue reading...
Residual income is a stream of income that persists from one work project or investment. Residual income is also known as passive income, and is income which comes from an investment of money or work in the past, where minimal or no additional money, work, or maintenance is required. Residual income could come from investments such income-generating real estate, or work completed such as a published book or acting in a commercial. Continue reading...
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...
Articles of Incorporation must be filed with the Secretary of State’s office before a corporation can do business in a state. Articles of Incorporation are legal documents which contain descriptions of the most pertinent information about a company at its formation. This includes a list of board members, the number of shares to be issues, bylaws, business model, facilities and assets, and so forth. Continue reading...
The secondary markets are where most trading goes on today, where the trades are made investor-to-investor using shares that were issued sometime before, and profits are made by investors and not the underlying company who issued the shares originally. The secondary market is a term used to describe the market created by those who are selling and buying shares which were issued some time ago in what's called the primary market. Continue reading...
Dow Theory is perhaps the longest-standing method of market analysis still used in modern finance. It suggests that markets experience primary trends (which last several years), intermediate trends (which last under a year), and minor trends (which last less than a month). Markets are in an upward trend if an average exceeds certain thresholds, followed by a similar movement from another average. Longer, larger trends are considered more predictive than smaller ones, though correctly reading the primary trend in the main goal. Continue reading...
The Negative Volume Index (NVI) is a technical indicator that tracks decreases in trade volume for an index or security, as well as price changes on those days. Paul Dysart developed the original version of this indicator for market indexes, and it garnered renewed attention when it was reworked in the 1970s via Norman Fosback in his book Stock Market Logic. The price changes in a security or the percentage change in an index are only added to or subtracted from the Negative Volume Index on days when the trading volume is lower than the day before. By watching market movement on days with lower trading volume, investors can identify where institutions and fund managers are moving their money. If trading volume is down and the market continues to do well, it means that there is a strong bullish primary trend, and that trading volume is not artificially pushing prices around. Continue reading...
Calculators are available to help you decide whether to lease or buy a car. Despite the advice of our older family members, many financial decisions will benefit from the use of math and technology, instead of just “rules of thumb,” and they will depend on the circumstances present at the time of the decision. Despite the fact that you may have purchased a vehicle or two in the past, you might benefit from using an online calculator that can help you compare whether it might be in your best interest to lease the vehicle this time or buy it. Continue reading...
You might not know it, but the Bond Market is about twice the size of the Stock Market. It’s true; in the US and internationally, the bond market, which includes municipal bonds, corporate bonds, government bonds, v, etc, has almost twice the amount invested in it than the Stock Market. Within these categories, there are many subsets. Bonds are widely used by individual investors as well as corporations and governments. Continue reading...
Participating in an IPO is generally limited to institutional investors. However, if you are a high net worth client at a brokerage firm that has access to the IPO, you may be able to purchase some shares. First, you need to know that investing in IPOs is considered speculative and only suitable for experienced investors will substantial assets. If you meet the criteria that your brokerage has for allowing IPO trading, which may include a minimum account balance of $250,000 or so, you may be allowed to submit an Indication of Interest (IOI), which is a document used to request shares in the IPO. Continue reading...
The analysis of convergence and divergence between indexes and other data seeks to find leading indicators where there is confirmation or non-confirmation of trends. Dow Theory was one of the first examples of such thinking. Charles Dow would watch the movements of Industrials and the Rail and compare the uptrend or downtrend of each. Where trends do not line up (e.g., one is trending downward with lower troughs and the other has “higher lows”) there is “divergence”, and non-confirmation of what was thought to be a trend in one index. Continue reading...
The abnormal earnings valuation method is one in which the future cash flows of a business are given significant weight in a valuation, especially when there are not many hard assets to use for valuation purposes. If a company is rich in human capital or has significant cash flows, whether or not it has many hard asset or book value, the Abnormal Earnings Valuation Model can be the most useful method for arriving at an accurate valuation of a business and its stock. Continue reading...
Unsystematic risk is idiosyncratic or unique risk that does not reflect a direct correlation with the risk present in the market, or systematic risk. Most securities and portfolios experience risk and variations which are not attributable to the market as a whole, and this is known as unsystematic risk. Systematic risk, on the other hand, is the risk borne by all investors in the market, where broad changes in the market cannot be avoided through diversification of a portfolio. Continue reading...
Navigating the intricacies of estate planning? Our guide demystifies wills and trusts, two pivotal tools in shaping your legacy. Discover their unique advantages, how they work, and when to use each. From addressing complex family dynamics to understanding tax implications, we cover it all. Whether you're planning for your family's future or safeguarding assets, this guide offers invaluable insights. Dive in to make informed decisions and provide clarity and protection for your loved ones. Estate planning is more than just paperwork; it's about ensuring peace of mind for you and those you care about. Continue reading...
The Federal Home Loan Bank Act was signed into law by President Hoover in 1932. The goal of the legislation was to make liquidity more accessible to banks for the purpose of making home loans, so that more Americans could acquire permanent residences. The bill established the FHL Bank system, which now consists of 11 FHL banks. The Federal Home Loan Bank Act of 1932 established the FHL Bank system, which is a co-operative banking network for banks and other lending institutions who make home loans. The FHL banks are owned by their member institutions, who purchase stock in the bank and are then permitted to take loans out from it, using that money to provide loans to customers. Continue reading...
Investment property is real estate that an individual or entity owns without the intention to directly use it, but rather to benefit from its ownership. Investment property is not directly used or inhabited by the owner. Its purpose is to provide income through rental or lease, or to be sold at a later time after the property has appreciated. Sometimes this involved building upon the property, or otherwise renovating or improving it. The property might be commercial or residential, with multiple tenants or a single one. Continue reading...
IRS Link to Form — Found Here If a person moves from his first-purchased home, or it is destroyed, and he took the first-time homebuyer credit at purchase, he may have to repay the credited amount if the home was sold or destroyed within 36 months. He must file a 5405 and begin making payments in the form of additional taxes going forward. Form 5405 is the filing for those who sell their home or see it destroyed within 36 months of receiving the first-time homebuyer tax credit. The First Time Homebuyer Look-Up Tool is an IRS database allowing consumers to see all relevant information about when they took the FTHBC and how much they might owe back if they no longer used it as a primary residence within 36 months. Continue reading...
529 plans are accounts designed to help families save for the future college expenses of young family members. A 529 Plan is designed to help you save money now to pay your child’s college expenses later. Investment companies who design a plan, which looks similar to a retail mutual fund account or IRA, will partner with state governments to offer the state’s official 529 plan. Families can invest in a 529 and gain access to an array of mutual funds. Continue reading...
Insider trading, a term often shrouded in mystery, is a pivotal concept in finance. But what separates legal insider transactions from their illegal counterparts? This guide unravels the intricacies of insider trading, from its regulatory framework to notable real-world cases. Learn about the role of the SEC, the significance of material non-public information, and how actions in this realm can either uphold or undermine market integrity. Whether you're an investor or just curious about the financial world, this guide offers a comprehensive look into the delicate balance of insider trading. Dive in to discern the fine line between legality and illegality. Continue reading...