Investors in mutual funds may need to brace themselves for higher fees in the future if a case under review by the U.S. Supreme Court results in a substantially different legal standard for judging whether or not fund advisory fees are excessive. On Nov. 2, the Supreme Court heard oral arguments in Jones v. Harris [...]
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Markets may have rebounded in 2009, but individual investors are still edgy and shell-shocked.
Even as the broad Standard & Poor’s 500-stock index remained up 56% since March, the U.S. unemployment rate crept above 10%, according to a Labor Dept. report released Nov. 6. “I don’t think many people are feeling very relieved,” says [...]
If finance experts are to be believed, green investment is still worth it despite the global economic blues. Sustainable investment options are set to become more attractive in the long run with the incorporation of the eco-stimulus. Currently, green stocks are showing stable returns on investments and investors who care about how and where their [...]
Is it possible to make profit and do good at the same time? By investing in an ethical manner you can ensure social good along with financial returns. Your hard earned money should not contribute to the damage of the environment or support the exploitation of labor in poor countries. The best way to ensure [...]
Purpose of the Income Statement
The primary purpose of the income statement is to report a company’s earnings to investors over a specific period of time. Years ago, the income statement was referred to as the Profit and Loss (or P&L) statement, and has since evolved into the most well-known and widely used financial report on [...]
Have you always wanted to know how to understand a company’s annual report and financial statements? In this series of lessons, we set out to teach you how to take the financial statements of a company and carefully analyze them to determine what the stock is truly “worth”. This allows you make better investing decisions [...]
As a way to encourage individuals to move their funds from traditional IRA accounts and covert to Roth IRA accounts the government has instituted the 2010 Roth IRA conversion. This conversion, when planned and completed properly will be a great opportunity for individuals who are planning their retirement.
The impetus of the 2010 Roth IRA conversion [...]
There are two forms of life insurance policies available. The first is Domestic or International Term Life insurance, which is the most basic form of insurance. It offers insurance death benefit coverage and that’s it. With a term policy, your premiums are applied 100% to the cost of the term insurance. As you age and [...]
If you earn relatively little, there’s good news for your 401k: a federal tax credit. A tax credit is better than a deduction because it directly reduces the amount of taxes you owe, making it as good as cash. Unfortunately, the federal tax credit is limited.
Eligibility for Retirement Savings Contribution Credit (in 2008):
Single person with [...]
Similar to an employer sponsored 401k, an IRA is a tax deductible defined contribution retirement account. It does not require an employer to be a sponsor and one can be opened at a variety of financial institutions.
As a retirement investment, an Individual Retirement Account (IRA) has multiple advantages and disadvantages:
Pros:
Tax deferred until withdrawal.
Individual, customized control [...]
