52 Simple Ways to Manage Your Money – 38. Here’s An Angle – Home Equity Loans What it Is… Borrowing money using the equity in your home as the basis for the Ioan. Interest rate is variable. How it helps … Interest paid is tax deductible. Makes use of the equity in your home. Generally, … Read more
52 Simple Ways to Manage Your Money – 37. Well…Onty ‘TIL Tuesday – Lending Money What it is… A method of earning interest income by providing a specified sum of money for a limited period of time. A loan should always be written down, preferably in the form of a promissory note. How it helps … Read more
52 Simple Ways to Manage Your Money – 36. Saying The “T” Word – Income Taxes What it is… A predetermined portion of income paid co the Internal Revenue Service Department of the U.S. Government as a result of being a citizen of this country. Key items to look for… An effective and efficient recordkeeping … Read more
52 Simple Ways to Manage Your Money – 34. Tomorrow Is Almost Here – Deferred Compensation/401(K) What it is… A retirement savings plan for employees, set up by their employer, with restrictions on the investment options available. Some plans include employer contributions; others involve only employee contributions. The money grows on a tax-deferred basis. Taxes … Read more
52 Simple Ways to Manage Your Money – 34. A Roof Over My Head – Annuities What it is … An investment through an insurance company that provides a guarantee of principal and an interest rate set for a certain time period. The guaran tee is backed by the insurance company, not by the United … Read more
52 Simple Ways to Manage Your Money – 33. Save Now, Enjoy Later – IRAs What it Is … An Individual Retirement Account (IRA) allows you to invest a maxi mum of $2,000 per year of earned income. The money grows on a tax- deferred basis. Taxes are paid on the money at the time … Read more
52 Simple Ways to Manage Your Money – 32. Putting Gold Into The Golden Years – Retirement Planning What it is … It is the time set aside after traditional work years have ended— a time of self-realization and the achievement of all those leftover items you never had time for when you were working. … Read more
52 Simple Ways to Manage Your Money – 31. Puffery – Inflation What it is … The erosion of your principal through increased cost of goods and services. How it hurts… It is difficult to see concretely and difficult to understand. Forces you to save larger amounts in order to equal the same buying power … Read more
52 Simple Ways to Manage Your Money – 30. Steady As You Go – Dollar-Cost Averaging What it is… A method of investing where you invest a specific dollar amount at a specific time, regardless of the stock or bond markets’ performance. How it helps … Encourages you to save regularly and consistently. Averages out … Read more
52 Simple Ways to Manage Your Money – 29. One At A Time – Single Issue Stocks And Bonds What it is… Purchasing individual shares of stocks or bonds as a result of your own research or the advice of a financial advisor. How It helps… Potential return can be higher than taxes and inflation. … Read more
