Credit card piggybacking came under intense scrutiny around the time of the 2008 financial crisis and mortgage meltdown. Shady credit repair companies and dishonest consumers used the process of piggybacking credit to artificially boost bad credit scores to qualify for mortgages that homeowners really couldn’t afford. For a while, it seemed that the benefits of piggybacking credit were going to disappear, even for people who used the practice legitimately....
Several European countries tax in excess of 40% of GDP, including Denmark, France, Belgium, and Italy. Five OECD countries had a lower tax-to-GDP ratio than the U.S.: Turkey, Costa Rica, Ireland, Chile, Colombia, and Mexico. Income Taxes Percentages of GDP are only one way to compare tax burdens. The issue changes a bit if you narrow the focus down to just income taxes. The United States’ top individual tax rate is 37%....
Credit card holds make at least a part of your credit impossible to use. Consumers need to understand both types of credit card holds in order to be able to manage them. The Administrative Hold There are two types of administrative holds: Over-the-credit-limit holdLate-payment hold The administrative hold that can be placed on a credit card by the issuing company is the simplest type of hold. If you go over your credit limit, a hold may be placed on the card to prevent you from using it....
A personal loan can be used for anything—that’s why it’s personal. Having cash on hand to handle a financial emergency can be a lifesaver, but a personal loan can affect your credit score in both good and bad ways. Personal Loans and Your Credit Score Your credit score might fluctuate throughout your personal loan experience. It may rise and fall a few different times, including when you: Apply for the loan Take on personal loan debt Repay personal loan debt...
What Types of Workers Qualify for WOTC? Let’s say your business is hiring. The first thing you need to do is determine if a worker you are hiring fits into one of the specific categories that qualify you for the Work Opportunity Tax Credit. The categories of workers you can hire to qualify for this tax credit are: Qualified veterans Qualified IV-A recipients of state programs for needy families with children TANF Recipients (long-term temporary assistance for needy families) SNAP (food stamp) recipients Designated community residents (living in empowerment zones or rural renewal counties)....
In bond investing, sometimes risk comes from too long a maturity profile, increasing bond duration. More often, it happens that inexperienced investors are attracted to the eye-popping yields available on so-called junk bonds. It’s easy to notice only the high-interest rates without considering the correspondingly high probabilities of default. Often, these investors would be better off buying a conservative bond fund or bond index fund that uses no leverage and operates at a low cost....
Keep reading to learn how the U.S. economy is doing. Jobs and Unemployment The economy added 263,000 jobs in November 2022 as employers continued to hire steadily. In the monthly jobs report, the Bureau of Labor Statistics surveys how many workers businesses added to their payroll. It doesn’t count farmworkers because farming is seasonal. Manufacturing jobs are an essential indicator. When manufacturers start laying off workers, it’s possible the economy is heading into a recession....
New Variables Affect Your Rate Insurance rates are affected by many variables, including your ZIP code. Moving to an area with heavier traffic or more deer can trigger rate increases. So can moving farther from your job, because that means you’ll be driving more each day. But your rate might go down, too. If you move to an area with lower crime rates, or if you move out of a state with high-priced auto insurance, you may see big savings....
These days, people are living longer and may need income for 25, 30, or even 40 years. How much money does a retiree need to save? Is $500,000 Enough? For many people, that total may not be sufficient. But the right investment portfolio could provide enough income to get you by. Let’s assume that a person is receiving about $17,000 annually from Social Security, which is roughly the average payment for those receiving benefits today....
You may already record the checks you’ve written in your check register, but there are additional ways to track the activity in your accounts. Excel spreadsheets: For Microsoft Office users, there’s a simple Excel spreadsheet template as well as more robust versions that track your spending categories for you. Google Sheets: To track everything in your Google account, use the classic checkbook version or go with the simplest possible design....
The Federal Reserve works to keep the rate of inflation around 2% per year. With that in mind, your assets should earn at least that much (more is even better) to hold their value. Find out how to beat this value-stealer with mutual funds and ETFs. Your Money and the Average Rate of Inflation As measured by the Consumer Price Index (CPI), the average rate of inflation over the last 10 years, it has averaged a little under 2%....
Make Sure It Makes Sense The first step is to make sure that borrowing is actually the right choice. If you’ve heard of “good debt” and “bad debt” you’re familiar with the concept: good debt pays for things that provide long-term value and possibly even gain value over time. Bad debt pays for current consumption, assets that depreciate in value too fast like new cars, or risky assets, or investments that might lose their full value or not generate enough to cover the principal and the cost of debt....
With the typical copay for a primary care physician ranging from $15 to $25 and a visit to a specialist ranging from $30 to $50, the costs of routine doctor visits and filling necessary prescriptions add up. Throw in trips to an urgent care or emergency room visits, which can cost hundreds of dollars a pop, and it’s enough to make you consider suffering through whatever’s ailing you. But not taking medications or skipping a trip to the doctor or ER is not a good money-saving strategy....
You can buy the worst house on the block among a bunch of other ugly, rundown fixer-uppers, or you can buy the worst house on the best block, among a bunch of fixed up or newer homes. The latter choice is smarter. The Benefits of Buying the Worst House on the Best Block You can change a lot about a home—its curb appeal, exterior, and interior—but it’s very difficult to change the location....
How to Calculate Gross Operating Income Gross operating income is what you’d make as a landlord by renting a property for a year after taking away some losses. The first step in calculating gross operating income for a rental property is to determine its gross potential income. Formula and Example of Gross Operating Income for Rental Property You can use a simple formula to calculate gross operating income for your rental....
Open Your New Account First, you want to open your new checking account. This will ensure that you have an account in place when you start moving over direct deposits, debits, and other payments. When choosing a new bank, be sure to consider its proximity to your home (or ease of online banking), account minimums and fees, or additional accounts that you may want to pair with your checking account, such as a savings account or even a money market account or certificates of deposit (CD)....
Open the Finances Discussion First, you should discuss any debts that you may each have. If you have student loan debt, you should not consolidate it together. There are many benefits that allow you to keep this separate. If you have credit card debt, you should quickly work on paying it off. Once you are married, you should only have one credit card account, and it should be a joint account....
This article describes Schedule SE, with information on how to use it to calculate self-employment tax and report it on your personal tax return. How Is Self-Employment Tax Determined? The Self-Employment Contributions Act (SECA) tax is the tax due on your earnings as a self-employed business owner to fund Social Security and Medicare programs and calculate benefits. You report these earnings to the Internal Revenue Service (IRS) on Schedule SE....
Remodeling doesn’t come cheap, though. According to Remodeling Magazine’s 2021 Cost vs. Value Report, a mid-range bathroom remodel will set you back an average of $56,946, and a kitchen refresh could cost more than $26,000. If you live in a pricey area or want higher-end fixtures, the costs may be even higher. How To Reduce Your Home Makeover Costs Use the following tips to reduce expenses on some of the most common renovation tasks....
What You’ll Need To File Taxes Taxes are all about paperwork, digital records, and information, which you should receive from your employer or clients early in the year—usually in January of the year you’ll be filing a tax return. For example, you should receive most information statements or forms in January 2023 for the 2022 tax return you’ll file in the spring of 2023. Forms you might receive include: Form W-2 detailing how much you earned as an employee....
