July 1, 2019
Members of the college graduating class of 2017 owed an average of close to $30,000 each in student loan debt. Imagine starting out adult life with that kind of debt load? The prevalence of this type of mounting debt for a 21- or 22-year-old is unprecedented in U.S. history – and all the more reason why young adults need sound financial advice. Financial advisors might not necessarily market to this demographic; instead, waiting until they’re older and have assets worth their while. However, if today’s young adults don’t get off on the right financial footing with regard to managing debt, saving, budgeting and investing for the future, there won’t be that many in need of financial advice once they hit […]
June 1, 2019
Summer is here and it’s time for getting out of town. However, you don’t want to set off on the open road without a plan. While there are an endless number of places to visit across the United States, here are a few road trips that are filled with natural parks, mountains and beaches, all of which are notably affordable, if not free. From New York City to Charleston, South Carolina First stop, Cape May, NJ, where you can hit Cape May Beach for some sun, then walk/bird watch for free at The Meadows. Next stop, Ocean City, MD, where there’s a 3-mile-long boardwalk with lots of arcades and fast-food joints (read: kid-friendly and affordable). After that, head toward the […]
June 1, 2019
One way to reduce the overhead associated with hiring workers is to make efficient use of technology. According to a recent survey by CompTIA, 73 percent of midsize businesses and 56 percent of firms with fewer than 20 employees say technology is a primary factor in pursuing their business objectives. Budgeting According to the 4Q 2018 survey, the average small/midsize business (SMB) invests anywhere from $10,000 to $50,000 a year on technology. About half (52 percent) of small business owners think they’re not spending enough on business technology. Upgrading The largest share of small businesses (36 percent) say that in recent years they’ve focused their technology budget on infrastructure, such as laptops, desktops, servers, phones and storage. The second largest […]
June 1, 2019
Most people associate saving for retirement with tax deferred or non-taxable accounts: 401(k)s, 403(b)s, Traditional IRAs, Roth IRAs, etc. The tax benefits of these types of retirement accounts give individuals advantages over simply investing in a regular taxable brokerage account. Savings for retirement in a standard taxable account can also have its place – and the option shouldn’t be ignored. In this article, we’ll look at a handful of reasons why doing so might just be the best option. Your employer doesn’t offer 401(k), 403(b) or similar type plan Some employers, especially very small ones, don’t offer retirement plan options to their employees due to the cost or administrative burden. Others have restrictions on participation, such as waiting periods […]
June 1, 2019
During the first three months of 2019, non-farm labor productivity grew 3.6 percent, according to the U.S. Bureau of Labor Statistics. This is coupled with a 4.1 percent increase in output, along with hours worked increasing by one-half of one percent. Comparing the rates from 2019’s Q1 to the first three months of 2018, productivity grew by 2.4 percent, year over year. Looking at the trend over 12 months, the BLS reported a 3.9 percent uptick in output and a 1.5 percent uptick in hours worked. With the BLS defining the non-farm business sector accounting for nearly four-fifths (77 percent) of America’s gross domestic product, it’s still noteworthy to see what it doesn’t include. It doesn’t account for government entities, […]
June 1, 2019
When it comes to gross margins and the American economy, they vary widely throughout the country’s industries. When New York University’s Leonard N. Stern School of Business recently compiled gross margin statistics for January 2019, they found the low end includes the Auto and Truck industry with a gross margin of 11.45 percent and the Oilfield Services/Equipment industry with a gross margin of 10.70 percent. On the top end, the General and Diversified Real Estate industry saw a gross margin of 73.08 percent and the Investments and Asset Management industry saw a 70.67 percent gross margin. While these gross margins are divergent, understanding more about gross margins gives better context for understanding this measure. Why Gross Margins Matter One way […]
June 1, 2019
There are a number of threats that both retirees and pre-retirees are facing right now when it comes to drawing Social Security benefits. For example, there’s a new scam this year. Seniors are being solicited by callers who claim to be with the Social Security Administration (SSA). The caller says he regrets to inform that the elderly person’s Social Security payments have been suspended. The caller says it’s either because the beneficiary has been involved in a crime or there has been suspicious activity related to their benefit. Here’s the interesting part: the caller then requests that the senior repay a certain amount of his benefit to Social Security by gift card. The scammer is then able to use this […]
June 1, 2019
Target Practice and Marksmanship Training Support Act (H.R. 1222 – The Pittman-Robertson Act, passed in 1937, imposes an excise tax on the sale of firearms, archery gear and ammunition. Those proceeds are used to fund hunter education programs, land acquisition and improvement of wildlife habitat. This new bill allocates a higher portion of these federal funds to cover the cost for construction and expansion of public target ranges. The act is designed to encourage states to develop additional shooting ranges for marksmanship training. It was introduced on Feb. 14 by Rep. Ron Kind (D-WI), passed in both the House and Senate and was signed into law by the president on May 10. To Reauthorize the Bulletproof Vest Partnership Grant Program […]
May 1, 2019
Yes, tax season is officially over. And you might be kicking back and relaxing, putting off thinking about next year’s taxes as long as you can. However, smart taxpayers know that the more you plan ahead, the better chance you have of reducing the amount you pay next time around. Here are a few easy ways to get a handle on your financial future – aka next year’s taxes. Understand Claiming Dependents. When you know the rules, it can be a game changer. Let’s start with the basics. You can take a $4,000 exemption for each dependent. You also can claim their related expenses such as child care and medical costs, along with tuition payments. However, if you share custody […]
May 1, 2019
When it comes to smartphones, speed and connectivity is generally referenced by generation. For example, the industry is currently focused on creating 5G networks. However, in the cable industry the G refers to gigabits. Over the past two years, this industry has expanded the availability of 1 gigabit broadband Internet from 4 percent to 80 percent of U.S. households. Now that the foundation for gigabit expansion exists, the cable industry is looking to increase speeds by tenfold and make it accessible to more homes and businesses globally. The new focus is on 10G technology, which also is expected to reduce transfer latency, provide greater security and enhance the ability to host a wide range of immersive skills and applications – […]
May 1, 2019
Pretty much everyone has heard about 401(k) plans, but beyond these – Health Savings Accounts (HSAs) also can be great retirement vehicles. HSAs are tax-advantaged savings accounts for those with high-deductible health plans (HDHPs). The idea is that since those with HDHPs generally have lower premiums but higher out-of-pocket expenses, they need a way to save for such expenses. Few eligible taxpayers take full advantage of HSAs. The Employee Benefit Research Institute estimated a few years ago that out of the approximately 17 million people eligible, only about 13.8 million opened HSA accounts, leaving almost 20 percent without one. The survey also revealed that very few people maximize their contributions – and nearly everyone takes current distributions, leaving balances far […]
May 1, 2019
With the price of lettuce increasing by 15 percent over the past 12 months at the end of February, and television prices dropping 17 percent during the same period, according to the Bureau of Labor Statistics, these statistics show the dynamism of consumer goods. Since consumer spending continues to make up approximately two-thirds of the U.S. economy, according to the St. Louis Fed, understanding how it impacts company earnings and future stock market movements is essential. Surveying Consumer Spending Based on the March 29 Bureau of Economic Analysis (BEA) release, consumers are facing more financial pressure. For the month of January, individual income fell by one-tenth of 1 percent, or $22.9 billion. The same month saw disposable personal income, or […]
May 1, 2019
According to a March 22 Internal Revenue Service News Release, 2018 federal tax filers might be able to have any penalties for an underpayment of estimated tax removed. This could be possible if they’ve paid at least 80 percent of their 2018 tax obligations through either quarterly estimated payments, income tax withholdings or a combination of both during the 2018 calendar year. This new level was established after the 90 percent payment requirement was reduced to 85 percent of estimated tax obligations on Jan. 16. With paying estimated taxes a legal requirement for many taxpayers, let’s examine how this works for individuals and business entities. Individuals and Organizations Responsible to Pay Estimated Taxes For the most part, corporations are required […]
May 1, 2019
While employers have cut back on pensions and their 401(k) plans do not offer the same level of retirement income security, they have stepped up in the area of life insurance. The majority of Americans (68 percent) have a life insurance policy through their employer. In fact, more people get it through work rather than purchasing a policy on the market for the first time in history. Most employers offer term life insurance typically at a coverage rate of anywhere from one to three times a worker’s annual salary. Term life policies lock in a fixed rate for a specific period of time, usually from 10 to 30 years. One of the biggest perks of getting life insurance through work […]
May 1, 2019
Relating to a national emergency declared by the President on February 15, 2019 (H.J.Res. 46) – This resolution was an effort to block the national emergency declared by President Trump to redirect funds to build a wall at the Mexico border. It was introduced on Feb. 22 by Rep. Joaquin Castro (D-TX), passed in both the House and Senate but was then vetoed by the president on March 15. An attempt to override the president’s veto failed in the House on March 26. A joint resolution to direct the removal of United States Armed Forces from hostilities in the Republic of Yemen that have not been authorized by Congress (S.J.Res. 7) – This joint resolution was designed to prevent the […]
April 1, 2019
The tax deadline is roughly two weeks away. But if you’re going to be late in filing, can’t pay all of what you owe or have the fear that you might be audited, don’t panic. We’ve got you covered with some smart ways to handle these three, potentially scary scenarios. Late Filing Of course, if you owe, make every effort to file as soon as possible to avoid penalties and interest. But the good news is, if you’re owed a refund, there’s no penalty for filing late. More good news: For those who qualify, Free File is still available on IRS.gov through Oct. 15 to prepare and file returns electronically. There’s more: If you have a history of paying on […]
April 1, 2019
There will likely always be a need for a traditional paper printer, but there’s also a growing case that 3D printers may one day become commonplace in the average small business office. Consider the way that desktop publishing became mainstreamed, allowing small business owners to create their own marketing materials. New 3D printers offer a similar advantage by producing physical objects customized with your message. 3D printing places complex manufacturing techniques and machinery right at your desktop. As the technology grows less sophisticated and less expensive, we will see more small businesses taking advantage of it. A desktop 3D printer can create objects of up to 5.5-inches-by-5.5-inches-by-5.5-inches in size, on a platform built within the device, in a variety of […]
April 1, 2019
Converting a traditional IRA to a Roth IRA takes some fortitude and faith in the future numbers because this change can accelerate your tax bill. The current market and tax rate cuts from President Trump’s plan, however, are creating an environment ripe for conversions and making the move much more palatable. Together, these two factors are essentially creating new groups of taxpayers for whom a conversion makes good sense. IRA Basics Revisited Contributing to a traditional IRA gets you a tax deduction now, at the time of your contribution and allows your money to grow tax free. You’ll also need to begin withdrawing your annual required minimum distributions (RMDs) once you hit age 70½, with whatever you take out taxed […]
April 1, 2019
According to a March 12, 2019 publication of the Bureau of Labor Statistics’ TED: The Economics Daily, the February employment report did not report show a lot of jobs for the U.S. economy. Based on the report and averaging all sectors, only 20,000 jobs were gained during February 2019. Looking deeper at the individual sectors, the picture is more varied. “Professional and business services gained ” 42,000 jobs during February. Similarly, “wholesale trade employment” maintained it’s positive gains of 11,000 jobs during the same time-frame. However, the construction industry saw a loss of 31,000 jobs during February, despite gaining 53,000 jobs during in January 2019. Other sectors, such as retail, mining and the government, saw limited movement in job gains […]
April 1, 2019
When it comes to figuring out a company’s net profit margin, this calculation gives a business and its financial officers a much better picture of the company’s profitability. Defining Net Profit Margin Net profit margin determines the percentage of revenue that ends up as profit after expenses are accounted for. Represented as a percentage, it’s calculated by taking the company’s net profit and dividing it by the entire revenue. Looking at the Formula Itself When it comes to calculating the net profit, it goes beyond the gross margin calculation, which only factors in the “cost of goods sold” – or how much the input materials and direct labor cost the company to produce saleable goods. Determining net profit includes factoring […]