Debt issued by a government—whether it’s local, state or federal—is generally a safe investment. Most government debt is backed by a “full faith and credit” pledge, which is a commitment to pay back the debt no matter what. It is widely accepted that the United States government will never default on its debt obligations, making its bonds virtually risk-free. U.S. Government … [Read more...] about U.S. Government Bonds vs. Municipal Bonds: What’s The Difference?
It’s never too early—or too late—to start saving for your child’s college fund. Whether college is three or ten years off, there are many options available that can help you save for college expenses, while also offering you tax benefits. 529 Plans A 529 savings plan is a tax-advantaged investment plan designed to encourage saving for future education costs. Named after … [Read more...] about 529 Plans & Investment Tips For Your Child’s College Fund
If you’re like most employed taxpayers, you probably see a large chunk of your paycheck go to the government each payday. Any income you earn is taxable, according to federal law, unless otherwise specified. Here are some cases that fall into the “otherwise specified” category, when your income may be non-taxable. 1. Gifts And Inheritances If you receive a gift or an … [Read more...] about 9 Different Types of Non-Taxable Income
The best way to invest your money may be right under your nose. If you work for a publicly traded company, you should check if they offer an ESPP, or employee stock purchase plan. These plans offer employees a great opportunity to buy stocks at a major discount. How It Works An ESPP is a company-run program that allows employees to purchase company shares at a discounted … [Read more...] about Employee Stock Purchase Plan (ESPP) Basics: Things Everyone Should Know
As a citizen of the United States, you are subject to taxes on the federal, state and local levels. Everyone must pay federal taxes, but each state can decide its own taxes to impose on its residents. Many states impose the same taxes as the federal government, but they also have additional taxes that the federal government does not impose. Income Tax The income tax is … [Read more...] about Federal vs. State Taxes: The Difference Between The Taxes