Key Takeaway: Universal life insurance is a type of insurance that also serves as an investment vehicle, allowing policyholders to accumulate cash value over time. One of the benefits of using universal life insurance as an investment is the tax-deferred cash value growth, which can be accessed later in life without incurring tax penalties. To…
Key Takeaway: Social Security deductions are mandatory contributions deducted from paycheck, intended to provide retirement, disability, and survivor benefits to eligible individuals. The Social Security tax rate for employees is currently 6.2% of earnings, up to a certain limit. Self-employed individuals must pay both the employer and employee portions of the tax, which currently amounts…
Key Takeaway: Investment ETFs (Exchange-Traded Funds) are investment vehicles that pool investors’ money to buy a diversified portfolio of assets, such as stocks, bonds, or commodities, with the goal of tracking a specific market index or benchmark. Investment ETFs can offer several benefits to investors, including diversification across multiple assets, lower fees compared to actively…
Key Takeaway: A cash balance pension plan is a retirement savings plan that combines features of traditional defined benefit and defined contribution plans. Features of a cash balance plan include annual employer contributions, a fixed or variable interest credit, and a benefit payment that is based on the account balance. Advantages of a cash balance…
Key takeaways: Items that do not generate income or have appreciation potential, such as personal automobiles or jewelry, should not be included in an investment portfolio. Investment portfolios typically consist of stocks, bonds, mutual funds, ETFs, REITs, and options/futures contracts. Investment portfolios should be diversified to minimize risk, but not over-diversified to the point of…
Key Takeaway: Changing bank for Social Security deposit may be necessary due to reasons like fees, services, and location convenience. Researching new bank options and meeting account requirements is important when selecting a new bank. When selecting a new bank, it’s important to consider fees and services offered. Some banks may have monthly account maintenance…
Key Takeaway: DVC may not be a good investment due to high upfront costs, limited availability of resorts, and ongoing expenses such as maintenance fees. Investors in DVC should be cautious of uncertain resale value, which can make it difficult to recoup initial investments. Alternatives to DVC include traditional timeshares, vacation rental properties, and membership…
Key Takeaway: DIB Social Security is a government financial assistance program designed to provide income and healthcare coverage for disabled individuals who are unable to work. DIB Social Security requires eligible individuals to meet specific disability criteria and work credit requirements in order to qualify for the program’s benefits. This includes a demonstrated inability to…
Key Takeaway: Social Security Disability Benefits continue when the individual turns 65: Reaching age 65 does not cause a halt in Social Security Disability Benefits. Instead, the benefits automatically convert to Social Security Retirement Benefits, which may result in changes to the payment amount. The eligibility requirements for Social Security Disability Benefits are different from…
Key Takeaway: Players need to have 43 days of service per year to qualify for the MLB pension benefit plan. This means players must accrue at least 172 days of service to earn a full year of eligibility. MLB Pension Plan provides a range of benefits like life insurance, retirement benefits, and disability benefits for…
Key Takeaway: Black Rock Investment is a global investment management corporation that offers a variety of investment options such as mutual funds, Exchange-Traded Funds (ETFs), and Separately Managed Accounts (SMAs). One of the main features of Black Rock Investment is the diversification they provide across sectors, industries, and geographic areas, which is important for managing…
Key Takeaway: Social Security wages are a portion of an employee’s income that is subject to Social Security tax, which is used to fund retirement benefits for eligible individuals and their spouses and/or children. To calculate Social Security wages withheld, first determine the Social Security tax rate, which is currently set at 6.2% for both…