Category: Individual planning

Passive investing is basically making an investing decision and sticking with it long term, without a lot of trading. It’s often associated with indexed investing: putting money into an indexed fund and letting it grow over time. As Investopedia says, “Passive investing methods seek to avoid the fees and limited performance that may occur with […]

Under IRS and Department of Labor rules, employers whose 401(k) plans have over 120 eligible participants on the first day of the plan year must hire an Independent Qualified Public Accountant (IQPA) to audit the plan for that year. (This is part of the so-called 80-120 rule, which governs plans with between 80 and 120 […]

Applying for a mortgage? Your debt-to-income ratio is a key number. Lenders care about how much money you spend each month on your credit cards, student loans and auto loans. The less of a financial burden your monthly debts are, the more likely you are to not miss any mortgage payments. What exactly is your […]

A cash-out refinance is a way for homeowners with enough equity in their residences to access a lump sum of cash. They can then use that cash for anything they want, from paying down high-interest-rate credit card debt or funding a kitchen remodel to paying for a child’s college tuition. Here’s how it works: Instead […]

Everyone has their own level of risk tolerance or risk appetite, which represents the uncertainty they feel comfortable taking when investing. But do they know their own personal level of risk comfort? Most people are unlikely to understand their true risk appetite until they are facing a serious potential loss; until they are staring at […]

The step-up tax adjustment has been under siege for decades but has so far survived the onslaughts. The provision, which reduces capital gains tax for estates, has been controversial since the 1970s. Policymakers would still love to get their hands on the bonanza in tax revenues it represents. There is a counterargument: If the law […]

ID.me simplifies how individuals prove and share their identities online. The idea is that you’ll have to verify your identity once and not have to reverify your credentials every time you visit a new website, similar to how a driver’s license works in the physical world. Once you’re verified, proof of your identity goes with […]

Since the turbulent days of the Great Financial Crisis, the US banking sector has been relatively stable. Rock-bottom borrowing costs and a COVID-19 powered demand for digital services had kept inflows surging. But cracks began to appear, as rising interest rates took a toll, and customers pulled out deposits in classic bank runs from two […]

If you find yourself in a position where you recently inherited an IRA, you might feel as though you’re at a crossroads filled with many planning tasks pertaining to estates, finances and taxes. According to IRS regulations instituted in 2022, the majority of beneficiaries who inherit IRAs must withdraw their portion of the IRA’s total […]

In 2001, the world was still reeling from the 9/11 attacks on the World Trade Center in New York City. Tensions were mounting in Iraq. Terrorists bombed a nightclub in Bali and took hostages at a Moscow theater. Accounting scandals had shaken investors’ belief in the ethics of senior management. CNBC began to present television […]