Am I Eligible for Social Security Benefits?
Social Security will pay benefits to those who have paid into the system, their beneficiaries in many cases, and also to some disabled individuals who have not paid into the system. In general, Social Security Benefits will only be paid in cases where individuals paid into the system. The exception is Supplemental Security Income (SSI), which is actually paid from the general tax revenue of the government, and not the actual Social Security trust funds, though it is administered by the Social Security Administration. Continue reading...
If I Retire, Can I Keep the Health Plan My Employer Offered?
Some employers will offer legacy employees continued health care coverage even after retirement, but it is not very common these days. The costs of health care are rising too quickly for most corporations to keep up. Some corporations will continue to pay a percentage of premiums for their retirees, but more often than not it is up to the retiree to obtain their own health care. Following employment, most people are eligible for COBRA, and then later in life you can purchase plans through Medicare and Medicaid. Continue reading...
What is IRS Publication 1244, Employee’s Daily Record of Tips and Report to Employer?
IRS Link to Publication — Found Here This publication contains both Form 4070A – Employee’s Daily Record of Tips, and Form 4070 – Employee’s report of Tips to Employer. It also gives detailed instructions for how to report tips, which generally includes any cash or credit card tips over $20 in a month. Publication 531 gives additional details about reporting tip income. Employees who earn tips over $20 a month must report them on Form 4070. At the end of the year, all tips, even those not reported due to being under $20, are to be reported on the individual’s 1040 for income tax. Continue reading...
What are Net Tangible Assets?
Net Tangible Assets represent a company’s total amount of physical assets less its intangible assets, like intellectual property and equipment, and also less the fair market value of its liabilities. Tangible assets can include things such as cash, inventory, and accounts receivable, versus liabilities like accounts payable, long-term debt and loans. This measurement of a company's tangible assets is important because it allows a firm's management team to analyze its asset position without including obsolete or difficult to value intangible assets. A company's return on assets (ROA) can be more accurate when net tangible assets are used in the calculation. Continue reading...
What is the Federal Funds Rate?
The federal funds rate is the overnight rate at which commercial lenders lend excess reserves to other institutions, on an un-collateralized basis. This term is unique to the United States, though other central banks around the world also have an overnight rate. The federal funds rate is a closely watched and crucial rate for determining how easy capital is to access. The lower the fed funds rate, the more accessible the Federal Reserve is trying to make cash - to inspire banks to borrow and lend. The opposite is also true, where the Fed may raise the fed funds rate if an economy is overheating or lending needs to be curbed. Continue reading...
What is Accounts Payable for Accounting?
Accounts Payable is part of the Current Liabilities section of a company’s books. Accounts Payable are the short-term expenses and debts that a company must pay out in the near future. These might include utility bills and regular expenses, debt service, and bills to regular suppliers and vendors. The amounts that appear in the Payables, as they are also called, have not been paid out yet, but are scheduled to be paid within the current quarter, generally. Continue reading...
What is the Series 63?
In order to solicit orders for any type of security, a broker or representative must pass the Series 63 examination, in addition to the Series 6 or Series 7. These tests are administered by FINRA, the financial services industry self-regulatory organization (SRO), and serve as licensing requirements for financial services representatives and management in the field. The 6 and 7 deal with product and industry knowledge and theory, while the 63 covers state-specific laws and rules, along with an understanding of ethical and fiduciary responsibility. The Series 63 takes only 75 minutes, with 65 multiple choice questions. Continue reading...
What is an Expense Ratio?
Generally associated with mutual funds and exchange traded funds, the expense ratio represents the total annual management fee. The expense ratio is the annual management fee charged to shareholders by ETFs and mutual funds. The annual fee typically comprises the annual management fee, 12b-1 fees (which are associated with research costs), operating costs, and all other administrative type fees that go into the product. The expense ratio encompasses all of these fees as one percentage. Continue reading...
What is a Dividend Reinvestment Plan?
A Dividend Reinvestment Plan, referred to as DRIP, is a plan offered by corporations that allows investors to reinvest their dividends in full or partial shares of additional stock, on the dividend payment date. Accessing a DRIP is typically a good long-term investment play - it allows for the investor to repurchase shares at a discount to the share price, and by accumulating additional shares over time increases equity ownership in the company. Continue reading...
How to: Investor Clubs
Tickeron’s Investor Clubs are a great opportunity to be a part of a community and interact with fellow investors, as well as exchange ideas and compare your skills. These clubs also help create an audience if you want to monetize your skills in the future. To access, from the menu bar, simply click the Trading tab, then click on Investor Clubs. To create an investor club you have to have a starting portfolio and ideas on how you would re-allocate it. You do not need to create a club -- you can just follow as many as you like. As soon as you join a club, you can have private discussions with club members. Continue reading...