According to the non-profit Tax Foundation, the average effective income tax rate for all U.S. households is 18.1%. That is lower than the highest marginal rate paid by most year-round workers, (at least 25% for any individual with an adjusted gross income of more than $36,901)—but it also doesn’t capture the full picture. For the typical tax payer, state and local taxes on income, purchases and real estate can be almost as burdensome as federal income tax. Read More
Life insurance is one of those things that just about everyone needs but far too few people actually have. It’s easy to put off purchasing a policy when you’re young and relatively healthy. But the longer you wait, the greater the chances of something happening before you get yourself coverage. Maybe buying life insurance been on your to-do list for a while but you haven’t gotten around to it yet. Check out these 10 reasons why you can’t afford to wait any longer. Read More
Investing intimidates a lot of people. There are a lot of options, and it can be hard to figure out which investments are right for your portfolio. This guide walks you through 10 of the most common types of investment and explains why you may want to consider including them in your portfolio. If you’re serious about investing, it might make sense to find a financial advisor to guide you. SmartAsset can help you find the right advisor for you with our free financial advisor matching service. Read More
529 Plans by State
529 college savings plans serve as tax-advantaged vehicles that allow you to invest in your child’s future college education. Think of them as 401(k) plans for education. Simply put, you are contributing funds to a professionally managed investment portfolio that you can tap down the road. As you invest, your earnings grow tax-free. You can also withdraw your money any time without penalty as long as you use it to fund qualified higher education expenses like tuition and mandatory school fees at eligible institutions. Today, all states and Washington, D.C. sponsor at least one 529 college savings plan. Some states provide additional tax benefits by letting you make tax-deductible contributions up to certain limits. Read More
The meaning of “capital” is one of those slippery concepts that change somewhat depending upon the context. It’s probably more confusing than not that all these meanings are closely related. Despite that, in each context the significance of capital is unique.
In everyday speech, “capital” is used freely to denote something like (but not quite the same as) “money.” A rough equivalent might be “monetary wealth” — which distinguishes it from other forms of wealth: land and other property, for example. This is different from its meanings in finance, accounting and economics.
Choosing a financial advisor is a big decision.
Being aware of these seven common blunders when choosing an advisor can help you find peace of mind, and avoid years of stress.
1. Hiring the First Advisor You Meet
While it’s tempting to hire the advisor closest to home or the first advisor in the yellow pages, this decision requires more time. Take the time to interview at least a few advisors before picking the best match for you. Read More
Ready to open an investment account and start building for your future?
Now that this important decision is made, however, you may feel overwhelmed as to what kind of investment account you need, where to open it, and what exactly you’ll put in it. Bottom Up Wealth to the rescue!
NEW YORK–(BUSINESS WIRE)– St. Patrick’s Day is the holiday of all things green, but how can you increase your chances of having more green to line your pockets? When preparing taxes, both deductions and tax credits can make a significant impact in reducing or offsetting taxes owed. Wolters Kluwer Tax & Accounting outlines the top dozen tax deductions and credits to maximize your tax refund.
“Taxpayers who take the time to research their options may find that they qualify for more tax deductions or credits than they thought,” said Mark Luscombe, JD, LL.M, CPA and Principal Federal Tax Analyst for Wolters Kluwer Tax & Accounting. “If you think there’s even a slight chance that you may or may not be eligible for a specific benefit, it’s a good idea to consult with a tax professional who can add clarity and identify other potential tax breaks for you on your 2018 tax return.” Read More
While accounting tracks and organizes your company’s financial information, business finance uses this information to help you manage your money and make your operation more profitable. Business finance includes reading financial statements and connecting the dots between your profit and loss, balance sheet and cash flow statements. If these documents point to a shortage of capital, business finance also provides the tools to plan strategies for bridging the gap. Read More
Will you pay tax on the sale of your home? Likely not, unless you have gains that are more than $250,000 or more than $500,000 for married couples.
Until 1997, once you reached the age of 55, you had the one-time option of excluding up to $125,000 of gain on the sale of your home providing it was your primary residence. Read More