Any employer can offer a Defined Benefit plan, but not many do anymore. Before the introduction of Defined Contribution Plans, most large corporations such as General Electric, General Motors, etc. offered only Defined Benefit Plans. Over the years, it has put a huge burden on these corporations to guarantee the performance of these plans. If the plan has not performed according to the assumptions, the company would have to contribute the difference, which would have to come from their profits. In order to shift the burden to the employees, most companies now offer Defined Contribution Plans (such as 401(k)s, etc.) instead of Defined Benefit Plans. Continue reading...
The Pension Benefit Guaranty Corporation will insure benefits up to a point, but it may not replace the full value of a pension if a plan goes belly-up. While the Pension Benefit Guaranty Corporation (PBGC) insures thousands of Pensions across the country, the entire benefit of your Defined Benefit Plan is in no way guaranteed. Some corporations can “freeze” your pension, meaning they stop the counter on the number of years you’ve worked, and use that as the number to calculate your monthly payments. Many pensions today are struggling after the long period of low interest rates on fixed instruments like government bonds. Continue reading...
Only employees must be included in SIMPLE IRAs. The IRS has about 20 criteria for assessing whether an employee-employer relationship exists. Silent partners and other owners who do not participate in the business or draw wages do not need to be included in the plan. You have to offer SIMPLE IRAs to all of your employees who received at least $5,000 in compensation in the preceding year two years. Unionized employees can be excluded. Continue reading...
Federal Credit Unions are essentially banks that are owned by their clients instead of publicly traded or what-have-you. Instead of being part of the FDIC, they have the National Credit Union Association (NCUA). They tend to be able to offer higher interest rates on savings and lower interest rates on loans than banks can, due to their mutual-ownership structure. Credit Unions operate as non-for-profit businesses, which can allow their management to use 457 retirement plans, but they are not associated with the Federal government. They do, however, charter under federal regulations, as opposed to state banks. Continue reading...
Credit Unions vs. Banks: Discover the Differences 🏦💳 Explore the unique world of credit unions and banks. Learn about membership requirements, advantages, and disadvantages. Make informed choices for your financial future. 💰🤝 #Finance #Banking Continue reading...
The Railroad industry, a cornerstone of the global transportation sector, offers investors a unique blend of stability and growth potential. As we delve into the world of railroad stocks, it's essential to consider several key players that dominate the North American market. Union Pacific Corp (UNP), CSX Corp (CSX), and Norfolk Southern Corp (NSC) stand out as notable companies in this dynamic industry. Continue reading...
All employees that meet minimum eligibility criteria must be included in a SEP IRA arrangement. If you decide to establish a SEP IRA, every eligible employee must be given a SEP IRA account to receive employer contributions. An employer is able to expand eligibility but cannot ignore the minimum eligibility rules. If an employee is over 21, has worked at the business in 3 of the last 5 years, and has earned over $600 in the most recent year. Continue reading...
Embark on a journey through the financial landscapes of Union Pacific, CSX, and Norfolk Southern, and uncover why these railroad stocks are the industry's prime movers, poised for sustainable growth and innovation. Continue reading...
In general, the answer is “Yes,” but there are a few exceptions. If you decide to establish a SIMPLE IRA, every eligible employee must be offered a SIMPLE IRA account. An employee is eligible if they have earned $5,000 in compensation during any two previous years, and are expected to earn $5,000 the current year. If an employee is unwilling to participate, the employer must open up a SIMPLE IRA on behalf of the employee. Continue reading...
Unlock the power of secure transactions with cashier's checks! 🏦 A bank-backed guarantee, ideal for major purchases 🏠🚗. It's like cash but safer. Get to know when & why to use it, how to obtain one, and alternative payment options. Dive in for a seamless payment experience! 🔒 #CashiersCheck Continue reading...
Discover the allure of Money Market Accounts (MMAs)🌟! Dive into how MMAs blend savings & checking features, offer higher interest rates💰, & aid short-term goals🎯. Uncover their historical evolution & how they stand out in the banking world🌐. Navigate the MMA journey here!🚀 Continue reading...
A money order is a secure and reliable alternative to cash or personal checks, often issued by governments and banking institutions. Functioning similarly to a check, a money order serves as a certificate that can be cashed or deposited into a bank account. This article explores the intricacies of money orders, including their benefits, drawbacks, and the process of obtaining and using them. Continue reading...
A Certificate of Deposit, commonly referred to as a CD, is a financial product that essentially pays risk-free interest (though typically at very low rates). CDs are typically offered by banks and credit unions, and usually span in duration from one month to 5 or 10 years. They are FDIC guaranteed up to $250,000, so customers may generally consider them risk-free. But because there is very little risk to purchasing a CD, they also typically pay very low annual interest rates. Continue reading...
Unlock the secrets of Euro Notes! 🌍 Discover the rich history, denominations, and advanced security features of these essential symbols of European economic unity. Dive into the world of €5, €10, €20, €50, €100, €200, and €500 notes. 💶 #EuroNotes #CurrencyInsights Continue reading...
Every institution that can be your IRA trustee will offer different options within the IRA. IRA is a tax designation which can be placed on an account at various institutions that offer a compliant list of investment options. Some can be as simple as a CD characterized as an IRA at a bank or credit union. Investment institutions can offer a wide variety of investment choices in an IRA: stocks, bonds, mutual funds, CDs, annuities, and so on. Margin trading is not allowed in IRA accounts, so you might not be able to use options or other hedging strategies in your IRA. Continue reading...
Demonetization is a significant economic intervention that involves stripping a currency unit of its legal tender status. This process entails withdrawing the existing currency from circulation and often introducing new notes or coins. In some cases, an entire overhaul of the currency system takes place. This article delves into the concept of demonetization, its historical examples, advantages, disadvantages, and its impact on economies. Continue reading...
In the world of retail, the term "hypermarket" has gained significant prominence, signifying a retail concept that has revolutionized the way consumers shop. So, what exactly is a hypermarket, and why should investors and shoppers alike pay attention to this retail giant? In this article, we will delve into the definition, advantages, and provide a notable example of a hypermarket. Continue reading...
Banks play a pivotal role in the global economy, facilitating the flow of money and offering a range of financial services. By understanding the different types of banks and their functions, individuals and businesses can make informed decisions, ensuring their financial well-being. Continue reading...
Most people recognize this as a “routing number.” The American Bankers Association (ABA) assigns a number to each banking institution registered with them, for the purposes of electronic transfers; this is commonly known as a routing number, and officially an RTN, or Routing Transit Number. Consumers and bank clients are familiar with this number as the 9-digit number that appears beside their account number on the bottom of their personal checks. Every client with a particular bank will have have the same routing number on their checks. Continue reading...
Most estimates project that the Social Security Trust Funds will be depleted by 2037. The system could still function at 70% of their full obligations by transferring cash flow directly from social security taxes to the retired beneficiaries, which most people don’t realize when they spread the news that the system is tanking. Adjustments to the system and interest rates could change how this plays out and keep it operating closer to full capacity. Continue reading...