Similar to a 401(k) used at companies across the country, a Solo 401(k) lets small-business owners share the fun and benefits. The business must be very small, however, limited to the owners of the business and their spouses.
The Solo 401(k) allows business owners to put away more money than a SIMPLE or SEP IRA, and there is some flexibility when it comes to contributions. You can contribute more or less every year, but a maximum of $16,500 for 2009. Read more »
It is as easy and low cost to set up and maintain as the SIMPLE IRA. But instead of the employee making contributions to the plan with a match from the employer, the employer makes the entire contribution.
Self-employed workers may find the SEP ideal due to its low setup and maintenance costs. Business owners can save quite a bit more in a SEP than the SIMPLE or other IRAs. For 2009, the contribution limit is 25 percent of net income up to $49,000. Read more »
a.k.a. “Savings Incentive Match Plan for Employees“
The plans are designed for small businesses with no more than 100 employees who earned $5,000 or more on the payroll for the previous calendar year. But some advisers and tax professionals think these plans are more suited for much smaller companies.
It’s easy and simple. Including instructions, the account application is about four pages to fill out, and you can do it in 10 minutes.
Who can open one: Generally an employer with no more than 100 employees.
Cost and complexity: Low.
Employer contribution limit: 3 percent of employees’ pay, matching, or 2 percent non elective.
Next year will be the retirement year for Uncle John. He’s been toiling in one Flint GM factory or another for 35-plus years, and he’s about done with it. Work— tinkering with cars, boats, and home remodeling tasks— can still give him a charge, but crawling out of bed every weekday morning at 5 to slap together torque converters wears on him. He’d rather spend time hunting and fishing, and also with his grand-kids.
John is pretty young for retirement. He’s in excellent shape— SAY NO TO Alcohol and Cigarettes and he’s able to carry his 150lb outboard trolling motor down a flight of stairs into his basement every winter’s eve for storage. He’s paid into the Social Security pensions system since he was a teenager, when payroll taxes were 6%. Most of that money went straight to retirees drawing direct benefits at the time. Today, payroll taxes are 12.4%, a partial reflection of a trust fund set up in 1983, so John’s kids and grand-kids, and nephews, wouldn’t have to worry about their Social Security later on. Just like John isn’t one to worry. Read more »
Just a few years ago when Melody Brooke applied for credit in anticipation of co-signing a loan for one of her adult children, she was told she had such good credit that she could buy a jet.
Today, she couldn’t buy a toy truck. The combination of a weak economy, which forced her to close her private counseling practice and caused her husband to lose a lucrative contract, has taken her family from a six-figure income to barely any income at all. To add to the constant barrage of debt collectors calling them, her husband hasn’t been able to obtain a job. “He’s only gotten two interviews and one offer,” says Brooke, who lives in the Dallas area with her husband. “But when they ran our credit, they told him they couldn’t hire him.”
The current financial crisis has brought about many economic anomalies, including throwing a whole new subset of the population on the radar of debt collectors – upper-middle class and affluent consumers like Brooke. Read more »
The plastic credit card with a magnetic strip many people carry in their wallets or purses is the end result of a complex banking process. Holders of a valid credit card have the authorization to purchase goods and services up to a predetermined amount, called a credit limit. The vendor receives essential credit card cardholder, the bank issuing the card actually reimburses the vendor, and eventually the cardholder repays the bank through regular monthly payments. If the entire balance is not paid in full, the credit card issuer can legally charge interest fees on the unpaid portion.
Individual banking institutions have their own policies when it comes to credit card applications. Customers may seek either a secured or unsecured credit card, depending on their individual repayment histories (credit rating). A secured credit card requires the applicant to deposit an amount of cash equivalent to the credit limit desired. A deposit of $1500 USD, for example, should be enough to be issued a credit card with a $1000 to $1500 spending limit. If the customer fails to make sufficient payments, the deposited money will be used to satisfy the credit card debt. Read more »
When it comes to purchasing a new property, you may want to consider obtaining an investment loan. This option should only be considered if you want to purchase a second home for either the purpose of resale or to use as a rental income. There are many advantages to securing an investment loan for this type of property purchase, and in some places it is the only option open to those who want to purchase investment property.
While on the surface an investment loan and a mortgage seem the same, in reality they are two completely different types of funding.
It is important that when you are considering any new loan that you first research all of the possibilities available. It is also highly recommended that you ensure that your credit andfinancialsituation is at the level that your financial institution will require to get the best rates possible. Read more »
There are certain factors of the planet which are generally understood. One thing which is generally understood is that there are seasons. Another is that there is evening and daytime. There are daily clocks which run based on factors such as these and these factors help to determine the ways of the world as a whole. As far as modern history understands it, these clocks will continue this way for as long as we understand time to continue. All of these clocks have one major thing in common, and that major thing is the sun. The sun has been the basis of civilizations for thousands of years and remains an important factor in daily life to this day. Without the sun there is no farming, there is little change in different seasons and there is no time difference in different areas. The sun has long been known as a crucial part of the existence of humanity as a whole, and now, science has found yet another way to harvest this renewable resource for the masses. Read more »
Many people have already made the decision to switch to solar. That’s because there are so many different advantages to this alternative energy source and there are so many disadvantages to standard electricity. Whether a homeowner has already decided to make the solar switch or it is something they are considering, they will certainly want to learn more of the advantages that come along with installing Verengo Solar Company residential solar panels.
The Advantage to the Environment
For some people, this will matter more than to others, but it is certainly an advantage. Solar power is definitely the best option for the environment. That’s because it is clean energy. It doesn’t do any harm and it doesn’t use anything up. This is simply not true of other, standard electricity. Read more »
If your intent is to buy rare gold coins, you will have the benefit of expanding and diversifying your investment portfolio. This is going to maximize the security and stability of your investment strategies, and rare coins are a great option because they tend to be a safer investment. Consider rare coins of gold and silver, whether you are a new investor or have been around a while, but want to improve your portfolio. However, it is important to understand the implications of this type of investment. Since you’re buying the coins individually or in sets, you will need to understand how dealers operate, which are the best to work with, and about the grading and value process. Read more »
During times of economic distress, investing in tangible assets becomes exceptionally appealing. Owning an item with intrinsic value just makes sense when the economy does not offer any sort of certainty. Precious metals like gold, silver, platinum, and palladium have long been a favorite investment vehicle to hedge against recession and inflation. Rare coins are another consistent performer that people are willing to trust.
Getting started can be challenging for those who are unfamiliar with the rare coin market. After all, there is an incredible amount of coins out there from all over the world, spanning thousands of years. Choosing the right coin involves your personal preference, past performance, future outlook, market trends, and more. Like any investment, it is possible to lose money by investing in the wrong rare coin. On the other hand, an informed rare coin investment can be a wonderful way to save money and make it multiply. Read more »
Electricity has long been a commonplace necessity in modern living for over a century and there is absolutely no way those living in the modern world can function without it. Every regular household uses electricity consistently throughout the day and often throughout the night. Even when one is at their place of business, or not at the home in general, there are still a myriad of appliances and electronics running in order to maintain the household’s functions. Utility bills can skyrocket and many find the monthly numbers a burden. Some do not concern themselves with the bills as much as they do wonder about the ethics of the energy they are using. Is electricity bad for the environment? How can an average household conduct itself in a manner which is better for the world at large and in general? The future is in the hands of the current generations and it is up to those in the now to provide for the next faces of the next part of the future. Read more »
In January 2013, platinum and palladium were projected to spike at high prices throughout the year, making them valuable precious metals investments. The price projections were based on the industrial demand of the metals and speculation on where the market was headed.
The available palladium inventory had been drying up due to labor issues in the South African mines. The demand for palladium was up, since emerging nations like China needed it for industrial applications. It looked like a safe bet that platinum and palladium would hit high marks. However, as it turned out, that didn’t happen. As of July 2013, palladium prices had dropped a bit.
Demand for Palladium Falls
The supply of palladium has gone lower and looks as though it will continue to do so. However, the demand has relaxed, and has since matched the supply decline rate. One major reason: automakers in Europe normally need a lot of palladium for catalytic converters. Increasing car sales in China and the US seemed to show that demand would stay high, and that was supposed to be a good sign for precious metals investments.
The recent economic crisis that still has many people in the recovery process was a stark reminder of how essential it is to have a strong and secure investment portfolio providing financial security for the future. While the stock market has been fluctuating dramatically and unpredictably, the prices of precious metals have generally grown and shown great potential. This has caused more and more savvy savers to begin watching the investment outlook for precious metals closely.
Why Do People Invest in Precious Metals?
Stocks and many other investment vehicles are extremely dependent and heavily influenced by various market forces. A world event or political shift could cause the value of a stock to rise or plummet. The same is not true for precious metals. Metals such as gold, silver, platinum and palladium are rare and naturally occurring commodities that have intrinsic values. Read more »
Even though the recession has been over for quite some time, there are still millions of people throughout the United States that have been forced to deal with the aftermath. Unemployment rates have skyrocketed right along with the cost of living, interest rates and the average price of a single gallon of fuel for automobiles.
One positive thing that came out of the economic recession and extensive period of financial struggling, however, is the fact that people are more aware of the need to protect their finances now more than ever before. Many people are eagerly searching for ways to hedge inflation by investing their hard earned money into tangible items. One of the best investment options that should be at the top of your list is the precious metals market. There are several key reasons why this market is the safest place for your money today.
An Effective Hedge against Inflation
In order to experience lasting benefits from quality investments that are designed to hedge inflation, you need to find something that is never going to lose its value. This is one of the main reasons why the stock market is not the ideal place for your money, primarily because of its consistent fluctuation and recent track record of being negative more than positive. The precious metals market is filled with high quality items that are extremely valuable, including gold, silver and platinum.
Investing in precious metals is seen as a great way to protect wealth since the value of currency can fall with the drop of an economy while precious metals are going to be valuable. The far majority of people are familiar with only two of the major metals: gold and silver. These two are extremely valuable and are known for their luxury applications like special coins and high end jewelry. Palladium and platinum are two other very popular precious metals that are traded as well, but this doesn’t change the fact that a lot of attention is being paid to the record prices of gold, and a strong movement is growing about silver.
Silver Has More Industrial Uses
One of the major reasons silver is growing in popularity is because it has more industrial uses than ever. This means the demand goes up because silver is no longer just something that is used for jewelry or luxury, but there is an actual industrial demand. This guarantees a higher demand, and some estimates have the numbers for the last decade as high as 50% in terms of new demand. This makes silver look as appealing as ever when investing in precious metals. Read more »
There are numerous factors that have contributed to the increase in individuals who want to start investing in gold. The stock market is not the most stable investment one can make, and that has been the case for decades. Although most investments like stock market trading have occasionally big payoffs, there are also great risks involved–some too great for most individuals to financially feel comfortable making.
Gold used to be an inherently valuable good that was used to back currency not only in the United States but also around the world. However, gold and silver were both done away with when it came to paper currency and coinage, and now each country around the world eventually turned over to a completely paper money system. Read more »