Fortunately, the federal estate tax exemption is particularly generous, at least through 2025. The Tax Cuts and Jobs Act provides the $11.7 million federal exemption in 2021 ($12.06 million in 2022), so the average estate won’t have to worry about this tax. Only the value of estates over this amount is subject to the federal estate tax. However, several states impose their own estate taxes with much smaller exemptions....
When a business is “leveraged,” it means that the business has borrowed money to finance the purchase of assets. Businesses can also use leverage through equity, by raising money from investors. The Meaning of Leverage in Business The concept of leverage in business is related to a principle in physics where it refers to the use of a lever that gives the user a mechanical advantage in moving or lifting objects....
Libor is short for the London Interbank Offered Rate. Originally, London banks in the British Banking Association (BBA) published it as a benchmark for global bank rates. In February 2014, after the BBA was found guilty of price-fixing, the Intercontinental Exchange (ICE) took over its administration. The rate-fixing inquiry revealed how banks manipulated interest rates for their own gain. Historical Libor Interest Rates The table and chart below show a snapshot of the historical Libor rates compared to the fed funds rate since 1986....
One of the best advantages of ETFs is the way taxes are calculated on these assets. This is even more true when compared with other investments. If you think high-yield ETFs might be the right choice for your trading strategy, look into the funds below. Junk Bonds ETF List ANGL: The VanEck Market Vectors Fallen Angel High Yield Bond ETFBSJO: The Invesco BulletShares 2024 High Yield Corporate Bond ETFEMHY: The iShares J....
Medicare Part A Costs in 2022 and 2023 Part A covers inpatient hospitalization, skilled nursing facilities, home health care, and hospice care. For most people, this works well because Medicare Part A generally doesn’t charge a premium. This doesn’t mean that you’re not charged a deductible. For each benefit period, you pay the first $1,556 in 2022, increasing to $1,600 in 2023. A benefit period begins when you enter the hospital....
If you want to save money on your health insurance but make sure you’re covered, learning the basics will help you decide which coverage is best. Let’s compare Medicare Advantage and Medigap to see which is right for you. An Overview of Medicare Options Medicare itself comes in a number of “parts,” each with its own realm of coverage options. In brief, they are as follows: Medicare Part A and Part B combine to form the Basic Medicare plan....
elenaleonova / Getty Images If you have a tax refund coming your way, there is no penalty for filing your return late, the IRS noted in a tax tip issued Tuesday. But if you end up owing the IRS money, that’s a different story: Late filers are charged 5% of the money they owe for every month after the due date, up to a maximum of five months, and with a minimum fee that kicks in once you are 60 days late....
In the last week alone, three big banks joined the rush by other major players in announcing they will curtail or eliminate some of the fees charged to customers for overdrawing their accounts: U.S. Bank, the country’s fifth-largest bank by assets, said it would boost from $5 to $50 the amount it lets customers overdraft before charging fees, and also provide a one-day grace period to avoid overdraft fees. That comes on the heels of the bank eliminating certain non-sufficient fund (NSF, or bounced check) fees earlier this month....
The best way to curb some of the anxiety is to educate yourself about the process so you know what to expect. Learn some mortgage tips and strategies that will get you through all of the prep work, so you can enjoy the homebuying journey and get excited for what your future has in store. Review Your Credit Before you try to get approved for a mortgage, you should know where you stand in terms of credit....
Check Your Coverage The claims process for motorcycle theft is a lot like that for a stolen car. First, find out if you have comprehensive coverage on your motorcycle insurance policy. Comprehensive is the kind of coverage that will protect you in case of theft. It is often bought along with liability while you are riding your bike or as protection if you store your motorcycle. Without comprehensive coverage listed on an active motorcycle policy, you will not have coverage for theft....
Fortunately, for those investors who actually want to analyze a mutual fund and be responsible before buying shares, there is a lighter read, called a summary prospectus. Summary Prospectus Definition Not to be confused with profile prospectus or statutory prospectus, the summary prospectus offers an improvement over the full length mutual fund prospectus that is often confusing and muddled with legalese. The modern summary prospectus rules were effective on March 31, 2009, and all mutual funds have followed these standardized regulations since January 1, 2010....
Sincerely, Sara Dear Sara, I can only imagine how stressful and scary having debt must be but I want to tell you that all hope isn’t lost. While it might feel that way, you can eventually eliminate your debt. You’ve identified one key hurdle in paying off your debt: life and its unpredictability. Unfortunately, emergencies often impact us at the worst times and if you don’t have the money set aside to take care of them, you’ll be forced to pay for them through debt....
Here’s how to calculate it, how analysts use the ratio, and some scenarios in which the effectiveness of the ratio might break down. What Is Net Profit Margin? The net profit margin is a ratio that compares a company’s profits to the total amount of money it brings in. It measures how effectively a company operates. If a company has a 20% net profit margin, for example, that means that it keeps $0....
The Opening Range The first hour of trading after the opening bell usually sees some of the biggest price movements of the day. The first 30 minutes of trading set a tone for the day—whether it will be high volume, volatile, low volume, sedate, trending, and/or choppy. On a candlestick chart, mark the high and low price of the first 30 minutes of trading. This is called the “opening range.” For this strategy, we want the price to hang around the 30-minute high or low or in between the 30-minute high and low....
What Is an LLC? A limited liability company (LLC) is a type of business legal entity that combines the liability protection of a corporation with the operations of a partnership. An LLC can have one or more owners, called members. Each member has a percentage of the equity (ownership) of the business. The members operate the LLC following an operating agreement. The LLC members can turn over day-to-day management to a hired manager or they can manage the business themselves....
Exchange-traded funds (ETFs) have made it easier than ever to buy and sell passively managed indexes, and a growing number of investors are starting to question the performance of actively managed funds. On the other hand, many active managers insist that their strategies can help reduce portfolio risk and potentially generate higher returns, which both could improve the risk-adjusted returns. The most important factor for investors deciding between active and passive funds is risk-adjusted excess returns compared to a benchmark index....
As one of the first payment processors online, PayPal has the luxury of being one of the most popular and most widely used payment systems on the internet. It’s an easy way for people to pay for products and services online, transfer money to friends and family, get paid as a freelancer, and much, much more. However, you should be aware of the various fees that PayPal charges for its services—as well as some ways you can cut down on them....
The only thing worse than finding your dream home and discovering that the seller won’t bend on price is not finding your home at all because the price range you chose was wrong. Learn how to choose a good price for a home. Flex Your Price Point Ranges Real estate agents don’t always think about the way buyers search for homes when they accept a listing. By not pricing a home in the right range, sellers might lose buyers because they never see the listing....
When a bank believes the security for its loan is in jeopardy and/or the seller is destined to become delinquent and stop making mortgage payments, the bank is then interested in talking about doing a short sale. Sometimes, the fact that a home is underwater is enough to induce a bank to consider a strategic short sale. But most of the time the bank wants the seller to have a hardship, in addition to negative equity....
Use these tips to see if there’s anything you’re not doing—then give them a try. Use the Job Boards Correctly All the major job boards, such as Indeed.com, SimplyHired.com, CareerBuilder.com and Monster.com have an “Advanced Search” option where you can search by keyword, location with a radius, job title, and many other options. Applying for every job you find isn’t always a good idea—it’s also inefficient. Instead, seek out jobs that match your qualifications....
