There’s a one-in-33 chance you’ll have your identity stolen in the next year, according to the Federal Trade Commission. Those rates may be even less favorable for senior citizens, who often find themselves a desirable target for scammers. There are ways to prevent your risk of becoming a victim (or to protect your parents and other older loved ones), but you need to be fully informed to do so.
If you own a car, you know how expensive it can get just to do routine maintenance. This is especially true if you have to take your car to the shop every time you need something done. For example, the average repair cost for a car across the nation is $356.04, and a lot of that is for labor. Here are some basic car repairs you can learn to do yourself to keep more money in your pocket. (more…)
Just like everyone, luxury home buyers have a list of features they must have in order to purchase a home. Their list may be different than someone looking for a starter home, though. Here are some of the things luxury home buyers need to make a purchase. (more…)
There are two types of loans that you might be familiar with: big loans, and small loans. Each type of loan covers specific items and purchases and will have different effects on your buying power and credit. (more…)
Bitcoin was the financial shot heard ’round the world. Though most people in America still don’t understand cryptocurrency, roughly 60% have heard of it. If you aren’t sure what Bitcoin is, or how it works, the following is a brief synopsis.
Bitcoin is a cryptocurrency powered by a blockchain. The blockchain (and Bitcoin itself) was created by a still-anonymous individual or group known only by the name Satoshi Nakamoto. Visualize a metal chain. Each link in the chain necessarily follows the next and the chain is made of indestructible metal. What’s more, a global group of people must come together and decide if the next link in the chain belongs there, or if it is a fraudulent piece of metal. Finally, imagine that you, or anyone else in the world, can examine this unbreakable chain at any time.
Reeling it in, let’s replace the visual aid with digital transactions. If you send bitcoin to someone, the bitcoin network makes sure this is accurate. You need a majority consensus to prove that the transaction is true, and once the transaction is deemed true, nothing can reverse it. To top it off, you can see this happening in real time.
Obviously there is a lot more to it than that. But for the purpose of this article, let’s just say that the blockchain is a distributed, decentralized ledger that immutably documents and stores transactions.
Bitcoin has been a big deal for a long time, but now there are new and innovative projects vying for public attention. How else can blockchain technology impact the world? Let’s explore.
There are many cryptocurrencies out there that aren’t really currencies at all. One of them is called Bounty 0x. This token is built on the Ethereum network. Utilizing smart contracts to automatically reward people for catching hackers and bugs, this idea might be bigger than it sounds.
Damages from cyber crimes is forecast to hit $6 trillion by 2021. Hackers, crackers, and tech-savvy thieves have made out like bandits in the digital age. Bounty 0x seeks to rectify this through a decentralized network of ethical or ‘white hat’ hackers.
Data centers are booming of late. Amazon is on a not so subtle quest for world domination and data centers are playing a huge role. There are many different services that data centers can provide. First up, cost.
Of responding companies who moved to the cloud, a resounding 82% reported saving money. This is due in no small part to the amount of money invested in making data centers as energy efficient as possible. Cooling costs alone can be astronomical. Then there’s the fact that the Office of Energy Efficiency and Renewable Energy found that data centers are upgrading IT equipment every three to five years, likely just to keep up with the rapidly evolving industry.
These high barriers to entry place smaller businesses in the hands of large data centers due to the comparably lower costs. Storj is a decentralized cloud network. It runs on individually owned computers using blockchain technology.
The goal of this project is to decentralize data. The first reason this is desirable is that it gives people the opportunity to monetize their unused hard drive space. The second reason is that this type of network with sufficient users would be robust enough to (theoretically) never have down time. Since your information is stored on many computers, redundancy is built in. While this will likely never be as efficient as data centers, it doesn’t need to be. It secures your data from a server failure and it only uses excess space on people’s computers.
What are loyalty programs if not one company trying to create their own form of currency that can only be used in their stores? Business can’t print money that competes directly with national tender, but they can reduce the prices of that item. They can also issue credit cards that earn rewards. They can even engage people with fun games that involve buying their product for a chance to win.
Gamification strategies can lead to a drastic jump in customer engagement metrics. Anywhere from 100% to 150% is possible. To drive home the point, SalesForce Marketing Cloud conducted a study that found 83% of customers ‘love’ or ‘like’ when a business account interacts with them on social media.
If you used tokens or cryptocurrencies in place of loyalty programs or company credit cards, a whole new world would open up for marketers. It would be necessary for you to interact with their brand every day, as you must pay with their token.
There are many other projects in the fintech space that could change the way our global economy interacts and behaves. Request Network is developing an incredible automated invoicing and payment system. VeChain is building the first blockchain enterprise solutions system and incorporating immutable supply chain tracking. Other fintech startups are working on autonomous vehicles, instant and feeless transactions, deep learning, and perfect privacy.
It seems that Bitcoin is slacking a bit. That’s okay, though. Look at what Satoshi Nakamoto’s vision has brought the world…
Another Tax day has come and gone, and it was a bit more dramatic than usual. A computer error led to major e-filing issues and a last-minute extension on April 17. State income taxes played a much more significant role in many people’s tax calculations this year. And, of course, there’s also a new tax code coming into effect.
As such, it’s important to reflect and look back at everything that happened to the tax system in the past year.
States Scramble To Adapt
What does the federal tax law have to do with your state return? The new tax code didn’t affect your 2017 income, and some people are using that to their advantage. The new law caps deductions from state and local taxes (SALT) at $10,000. As a result, many homeowners prepaid some 2018 property taxes this year in a bid to get every penny they could from itemized deductions. In addition, this sudden pre-payment has wreaked havoc on many state’s carefully engineered revenue projections.
According to Reuters, taxpayer actions in response to federal income tax changes passed by the U.S. Congress late in 2017 are expected to force states that tax personal income to reset their overall revenue forecasts.
President Donald Trump signed the federal tax bill into law on December 22, 2017, and impacted the majority of states during the middle of their fiscal year.
“There’s so much going on with this tax act that states are having a difficult thing figuring out what’s going on,” said Ron Alt, a senior manager of research at the Federation of Tax Administrators.
The fallout over the bill’s deduction changes will be much more evident in the weeks following the tax filing deadline, as states begin to revise their past and upcoming fiscal year revenue projections. Additionally, there was a significant jump in estimated income tax payments by high-income earners attempting to maximize deductions throughout 2017 (before the cap took effect). Estimated income tax payments increased nearly 70% in December 2017 compared to December 2016.
“We have never seen such a growth rate in a single month,” added Lucy Dadayan, senior research scientist at Rockefeller Institute of Government, which tracks state revenue.
Back in 2015, corporate income taxes comprised roughly 11% of the taxes collected by the federal government.
A total of 41 states tax both wages and salaries, while Tennessee and New Hampshire only tax dividend and interest income. There are seven states that do not collect an individual income tax at the state level: Florida, Alaska, Nevada, Wyoming, South Dakota, Washington, and Texas.
No matter what state the extremely wealthy live in, though they might not have to pay income tax, they will have to pay federal estate taxes. Unless an individual’s estate is valued at more than $5.43 million — or $10.86 million for a married couple — then they are exempt from federal estate taxes.
There Was a Computer Error, So I Can File My Taxes Late, Right?
Additionally, everyone filing taxes at any point, no matter their income level, should be fully aware of potential penalties.
“If you owe more than $1,000 at the end of the year and you don’t qualify for one of the [exceptions], you will be penalized,” added DeDe Jones, certified public accountant and managing director of Innovative Financial in Lakewood.
The IRS can assess underpayment penalties above the $1,000 threshold unless you earn below $150,000 and paid 90% of the current-year tax burden or 100% of last year’s tax bill; or you earn more than $150,000 and paid at least 90% of the current-year tax burden or 110% of what you paid last year.
Also, though the new tax bill lowered individual tax rates and created a deduction for qualifying earnings for solo workers, it’s still quite easy to owe the government. So everyone needs to be careful when filing their taxes. As long as your net income is at least $400, you’re subject to the 15.3% self-employment tax, as well.
This year’s Tax Day was even pushed back one day because of a major computer crash at the Internal Revenue Service (IRS).
According to National Public Radio (NPR), individual tax filers had a little longer this year to get their paperwork into the IRS after the agency’s website made it impossible for people to both view their records or make tax payments for most of the day on Tuesday.
“Individuals and businesses with a filing or payment due date of April 17 will now have until midnight on Wednesday, April 18,” the IRS said in an official statement. “Taxpayers do not need to do anything to receive this extra time.”
The website starting experiencing major problems early on Tuesday and key services were inaccessible for the majority of the day. The site was fully functional by evening Eastern time.
“This is the busiest tax day of the year, and the IRS apologizes for the inconvenience this system issue caused for taxpayers,” added David Kautter, acting IRS Commissioner. “The IRS appreciates everyone’s patience during this period. The extra time will help taxpayers affected by this situation.”
When it comes to estate planning, many people aren’t really sure where to begin. With this process seeming overwhelming, some people continue to put off their estate planning until it’s too late. Because of this, about 55% of Americans die without an estate plan in place. Unfortunately, this makes it difficult for remaining family members to manage assets and property. Additionally, this can lead to a very expensive probate process. However, when an estate plan is done correctly, probate fees can be minimized. We’re going to give you a few tips to help you make your estate plan simple and hopefully reduce probate fees.
One of the easiest ways to save on probate fees is by choosing a personal representative who won’t charge a fee. When you’re making your will or estate plan, choose a family member or friend who agrees to be your executor. In doing this, you’ll be able to avoid having to pay an executor for their services. If you don’t have a family member or friend who you want to be your executor, make sure you compare rates and ask about negotiating prices.
Additionally, it’s important to choose your attorney wisely. While an attorney is always a good idea when it comes to estate planning, this can also be one of the most expensive fees of the process. Attorney fees aren’t always set in stone, so don’t be afraid to ask about cost reductions. And again, it’s important to compare costs before making a decision.
If you own real estate, consider making it a joint ownership. If a property is shared equally between you and another person, the other will own the real estate outright after you’re gone. This eliminates the need for the real estate to pass through the state and immensely reduces costs. You can easily set up your real estate to be immediately passed onto another person upon your death, but there are important factors to consider. Your mortgage, any business ownership, and bankruptcy declaration could all impact the fees associated with joint ownership. Because of this, it’s important to choose joint ownership carefully.
Overall, there are many steps you can take during your estate planning to try to reduce probate fees. It’s important to consult with your attorney before making any decisions or changes to avoid making things more complicated. But with a well-planned estate or will, your family members should be able to manage your assets and finances with ease.
Many millennials feel that they are aggressively thrust into “adult life” and feel completely unprepared. There are so many things that are thrown at a millennial living on their own. Internet, cable, phone bills, rent, utilities, the list goes on and on. Fortunately, it does not have to be the ominous terror that it may seem to some. Here are some money saving tips that every millennial should have in their back pocket.
Wait, people still do that? Believe or not, they do. Roughly 2.5 billion coupons were redeemed in 2015. What’s even more surprising is that 90% of millennials say they use coupons, according to a Bloomberg report. Make sure, though, that you don’t go crazy just because there’s a sale. Redeem coupons and buy items that you’ll actually use, and don’t stockpile if you don’t need to.
As a millennial, you probably already have tons of apps on your phone. Guess what. There are actually apps you can download to help you save money. There are various coupon/sale apps that let you know when items are on sale so you can eat at your favorite restaurants or shop at your favorite grocery store for a discount that day. There are also apps you can shop through that will give you cash back for certain purchases. See a list here.
This may seem scary, but understanding what you have to work with every month can make a huge difference in your finances. Sit down and write out how much money you bring in every month along with how much you need to allocate for bills and other expenses. There are also apps for this, so don’t worry about all that math. You can download an app that can help you track all your income and your spending.
According to Forbes, it’s never to early to start saving for retirement. In fact, if you start saving at 35 instead of 25, you miss out on 10 years of time for your account to grow with interest. That can be worth thousands of dollars. You can invest in a 401K plan through your employer or set up an IRA account on your own.
Future you will certainly thank present you when you start seeing extra money in your pocket every month. Once you start following some of these finance tips, you’ll realize that some of these extra steps are totally worth it.
Working in a home office can certainly feel liberating. In fact, according to a survey conducted in 2016, individuals that work from home are happier, feel more valued, and are 91% more likely to report a higher level of productivity from their home office than people who don’t. All of these benefits aren’t a guarantee, however, and in order to execute the perfect home workspace, you need to put some work into it.
One of the main character traits you need for any job is a strong work ethic, but this goes double for working at home. You could be tempted to do absolutely nothing all day since no one is looking over your shoulders, or you could be twice as productive because you have fewer distractions.
One of the ways effective workers manage to stay on task is by cultivating a good work ethic from a young age. Of the 57% of American adults who earned an allowance at a young age, 90% had to do chores, and 70% needed to do chores down to the penny. It’s easy to see how work ethic can be learned this way, but what if you didn’t do chores as a child?
It seems that, like in childhood, work ethic can be taught, even if it sometimes seems like it is inherent or a consequence of upbringing. If you are the type of person that likes to slack off, working from home is going to be a real challenge. You probably can change, but it rather ironically will require some hard work.
Ever since Charles Darwin invented the wheeled office chair in the 1800s, his fame was fated. No, he wasn’t at all famous for basically creating modern biology, it was definitely due to desk chairs.
Now, however, we have literally thousands of swivel chairs to choose from, and many of them are expensive. Finding a decent deal on an office set up is no easy task, but browsing websites like Craigslist might prove to be a frugal way to find a comfortable seat. If you don’t have a desk, look for one online too. Simply put, lounging around on your couch or bed does not inspire optimum productivity, and the right office equipment can put you in the right mindset to do work.
Once you’ve perfected your new home office, you should now turn your attention to the broader environment of your workspace.
There are two factors to creating the best environment for remote work: cost and comfort. Let’s address cost first.
The U.S. Department of Energy claims that a nationwide switch from traditional light bulbs to LEDs would cut energy consumption by almost 50%. This doesn’t mean that your electric bill will see that strong of a drop off if you do the same in your home, but you will likely see at least some savings. This is especially important if you are going to be home more often, as you will inevitably be using more power every day. Another cost issue is your heating and cooling system. A typical house loses 20-30% of its air due to leaks and poorly connected ducts. This can wreak havoc on your energy bill.
Environmentally, old air ducts accumulate dust, pollen, and countless allergens. Not only does this further reduce your energy efficiency, but it could also cause some unwanted health effects. A stuffy nose, sinus pressure, and constant sneezing could lead to a marked decline in your productivity. Air is a part of your environment, make sure it is clean air.
Light is also part of your environment, and LED bulbs have been shown to increase worker productivity in addition to costing less. So, if you have old dim lights at home, you have double the incentive to replace them with something a bit more modern. However, if you’re whiling away the 9-to-5 hours at home, don’t underestimate the benefits of natural light on your mood and productivity! Anything beats those stifling office fluorescent bulbs, but nothing can beat natural sunshine.
Working from home can be great. Although you miss out on the socialization of the office, you make up for it in productivity and freedom to work when, where, and how you want. Make sure to always be conscious how much money your home office costs you, and how productive you are actually being. Otherwise, enjoy the solitude and liberty!
There are a lot of industries and businesses that keep people out of them. The construction industry around the world has 50 companies making 90% of the revenue. Banking isn’t much better, and the financial industry as a whole doesn’t have a great reputation with gaining and keeping people’s trust (what’s up, Equifax?). Financial Technology (FinTech for the jargon lovers) has been hitting the scene for the last several years with the goal of making finances more user-friendly and accessible to everyone, not merely the financially savvy.
There are thousands of apps out there that are vying for your attention and money, but there are a few that tackle the difficult task of breaking down investment without incurring too much risk. If you’re looking into dipping your toes before taking anything resembling a full plunge into the wild world of investment finance, there are some great apps out there that have your back. The list of FinTech at your fingertips is lengthy, but we’ve got our eye on Stash, an investment app that aims to teach finance in action.
Stash is an investment app that runs on transparency and ease. The founders started it with a simple idea that drives their whole platform: “My co-founder Ed and I left our jobs to start Stash because we believe everyone should have access to financial opportunity. After a combined 30+ years in the business, we saw that Wall Street can be fundamentally unfair to smaller investors as they work to accomplish their goals. Stash will change that.”
With as little as $5, you can start an investment fund that takes small amounts of money–coffee money and spare change, if you so choose–and starts micro-investments. The draw of Stash is that traditional investment accounts generally require large initial investments that bear potentially steep risks, therefore being unfriendly to new investors. Not to mention, the mobile-first user experience panders to millennials, who are a vastly underserved population in the investment world. The platform is transparent and free of fees for the first three months, then charging $1 per month for accounts under $5,000 and 0.25% annual fee on accounts over $5,000. You’re able to choose your investment portfolios and have access to educational articles, videos, and podcasts all dedicated to making a complex world easy.
Staying on top of your finances is difficult, especially with the shifty structure of the financial world we’re currently immersed in. Keep your eyes open for tools that’ll help you learn and practice without the potential for devastating fiscal repercussions. Tons of FinTech is out there with this goal and Stash is just one of many. Do your research, find what makes you feel comfortable, and compound your cash accordingly.
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