Breaking Into the Stock Market

People save in order to be ready for retirement, a family vacation, new home or car and unforeseen events. Many of us leave our money in the bank to grow with earned interest because it is safe and we are not sure how to invest otherwise. But counting on interest rates to grow your nest egg won’t work because interest rates do not cover your money against inflation rates. Many look to the stock market to diversify their investments.

The stock market is where publicly listed companies trade shares of stock to the public at an agreed price. The stock market is one of the most important ways for companies to raise money for continued growth. Read more

Tax-Free Municipal Bonds

Municipal bonds, also known as “Munis,” are investment tools that have guaranteed payments with interest earnings.

These are issued by municipalities that wish to raise capital for projects such as schools, roads, bridges, healthcare, or other benefits to its citizenry. They are tax-free because of the federal government’s stand that it is for the benefit of the constituents. Read more

High Yield Savings Accounts

As the term implies, high yield savings accounts offer higher returns in terms of your money. They provide more perks but most of the time offer higher interest rates as well.  Most banks nowadays provide this type of savings account. Although they call it “high yielding,” the term is somewhat subjective. What is a high yield for the offering bank is more often than not a small figure for the client.

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ROTH IRA: Why Convert

It’s a given that unlike the traditional Individual Retirement Fund (IRA), contributions to a ROTH IRA are not tax-deductible. In addition, despite the fact that you cannot have a tax-free withdrawal from your principal – unless the account has been existing for 5 years and that tax is applied for earnings withdrawn before reaching the age 59 ½ – there are fewer withdrawal requirements on ROTH IRA over a traditional IRA. Read more

Traditional IRA vs. Roth IRA

There are actually 11 different types of IRAs, but the ones we hear the most about are the Traditional and Roth IRAs. Let’s look at them both to understand their differences. Read more

Understanding the Capital Gains Rate Tax

To be successful in investing, thinking long-term is the way to go.  You’ll have a higher chance of earning more money and also have a lower tax rate when you sell. This tax rate, called the capital gains tax rate is a tax charged on all capital gains, or profits made when selling such assets as stocks, bonds, precious metals and property.
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72t IRA Distribution – What Is It and How Does It Work?

Early retirement means you are cutting off a stable and constant source of income – your compensation income or salary.  If you are going to retire early, you should think about the retirement package you will receive and ponder whether it will be sufficient to provide you enough money on which you and your dependent can live on – probably for the rest of your life.  You should also decide whether you should take everything in a one-time, big-time payment and pay the corresponding taxes or perhaps settle for a 72t IRA (Individual Retirement Account). Read more

What is the Roth IRA?

The Roth IRA (Individual Retirement Account) is a personal retirement savings account providing tax advantages while allowing US citizens to save for retirement.  Named after Senator William Roth of Delaware, the chief legislative sponsor of the bill, the guidelines and parameters went into effect in 1998.  Read more

Types of International Mutual Funds

When we hear the term ‘international mutual fund’, we always assume it is equivalent to investing money into stocks and bonds and various portfolios worldwide.  However, in the financial world, this is not entirely accurate.  There are actually several types of international mutual funds and not all deal with investments worldwide.  Awareness of available options may help one come up with an intelligent decision on which type of fund to invest in. Read more

Mutual Fund: Which is the best?

Have you read Blink or have you at least heard of the “Theory of Thin-Slicing?”  According to Malcolm Gladwell, “thin-slicing” is the power of thinking without thinking.  In layman’s term, snap judgment.  During exams, for instance, it’s believed that the first answer that pops into your mind is usually the right answer.  Could this be applicable in choosing the best mutual fund, however?  Could you pick the right one in a split-second?

Top mutual funds are those that are not easily affected by ups and downs of the stock market, and are therefore, inelastic.  “Top” would mean the money invested will most probably multiply. Read more

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