Key Takeaway: The VA Pension is a needs-based benefit for wartime Veterans and their surviving spouses who meet certain eligibility requirements. This benefit helps Veterans and their families with financial assistance for basic living expenses. Veterans must meet both age and disability requirements, as well as income and asset limits, to be eligible for VA…
Key takeaway: Common mistakes: Common causes for a wrong social security number on a tax return include clerical errors, transposition of numbers, and identity theft. Steps to fix: To correct a wrong social security number on a tax return, obtain a copy of the incorrect tax return, obtain a copy of the correct social security…
Key Takeaway: Grossing up Social Security Income is the process of adding a fictional amount to the actual income to account for taxes that the borrower doesn’t have to pay. Lenders gross up social security income to allow borrowers to qualify for larger loans while maintaining a debt-to-income ratio that meets lending guidelines. According to…
Key Takeaway: Understanding investment capital is essential in order to prepare for fundraising. It involves knowing the different types of capital, the risks involved, and the potential returns. Preparing for fundraising involves defining business goals and objectives, creating a solid business plan, building a strong team, and identifying potential investors. This is crucial in making…
Key Takeaway: Means testing is a process used by the government to determine eligibility for certain benefits, based on an individual’s income and assets. Means testing for Social Security is aimed at reducing benefits for high-income earners, in order to ensure that resources are allocated to those who need it the most. In order to…
Key Takeaway: Passive investment refers to a long-term investment strategy in which investors buy and hold a portfolio of assets, such as index funds, ETFs, and REITs, without actively managing them. Index funds, ETFs, and REITs are the most popular types of passive investment vehicles, offering lower fees, greater diversification, and lower taxes than actively…
Key Takeaway: Compound interest is the interest calculated on the initial principal amount and the accumulated interest over time. Investments that offer compound interest provide the opportunity to maximize returns on investments through the power of compounding. The types of investments that offer compound interest include savings accounts, certificates of deposit (CDs), money market accounts,…
Key Takeaway: When investment increases, the multiplier effect points out that there will be a larger increase in national income and output. The size of the multiplier is affected by factors such as the marginal propensity to consume, the distribution of income, and the amount of imports. Understanding the multiplier effect is crucial for governments…
Key Takeaway: A Social Security Number is a unique identifier assigned to U.S. citizens and certain residents, which is used to track their earnings and eligibility for Social Security benefits. To apply for a Social Security Number, you must have a valid reason, such as being authorized to work in the U.S. or needing a…
Key Takeaway: Understanding investment bankers is important: Investment bankers have a very demanding job and their work can affect their personal life. It is crucial to understand the nature of their work and be supportive. Look out for traits of an investment banker before dating: Investment bankers can be very ambitious, analytical, and hardworking. Being…
Key Takeaway: Paternal investment theory explains the role of fathers in the development and maturation of their children during puberty. It is based on the evolutionary principle of sexual selection and parental investment. Paternal investment during puberty is vital for the hormonal changes and development in boys. The involvement of fathers has positive effects on…
Key Takeaway: The primary purpose of the Pension Protection Act of 2006 was to strengthen private retirement plans and ensure that workers had access to secure retirement income. The Pension Protection Act of 2006 was necessary due to a number of issues, including underfunded pension plans and the risk of decreased retirement savings due to…