Key Takeaway: Social Security deduction is a mandatory contribution to the Social Security system that is taken out of an employee’s paycheck in order to fund retirement, disability, and survivor benefits. It is calculated as a percentage of the employee’s earnings, up to a limit that is adjusted annually. The Social Security deduction serves as…
Key Takeaway: Leaving the NHS pension scheme can have consequences, including losing access to your final salary pension benefits and having options for your pension contributions. Professional advice can help you understand the implications of leaving the scheme and your available options. Transferring your NHS pension to another scheme is an option but requires meeting…
Key Takeaway: There are valid reasons for opting out of a pension, such as wanting to take control of one’s own retirement funds, paying off debts, or pursuing other investments. However, it is important to carefully consider the long-term consequences of such a decision. Opting out of a workplace pension requires filling out a form…
Key Takeaway: A Qualified Opportunity Fund (QOF) investment is a tax-advantaged investment vehicle designed to promote economic development and revitalization in designated low-income areas known as Opportunity Zones. QOF investments offer attractive tax benefits, such as deferral or reduction of capital gains taxes, and can potentially generate economic benefits for investors, communities, and businesses in…
Key Takeaways: Investment bankers play a crucial role in financial markets by providing advisory, underwriting, and financing services to clients. Key responsibilities of an investment banker include financial analysis and valuation, client pitching and deal origination, and due diligence and deal execution. To succeed as an investment banker, individuals must have a combination of technical…
Key Takeaway: Contact the pension provider: The first step in getting your pension from a previous employer is to contact the pension provider, who can provide information about the plan and the options available to you. Gather information on the pension plan: To make informed decisions about your pension, it is crucial to gather information…
Key Takeaway: Receiving social security disability approval can provide financial assistance to those who are unable to work due to a disabling condition. Approval notification will include detailed information on back pay and future benefits, as well as the timeline for receiving disability payments. Maintaining eligibility for disability benefits includes reporting changes in employment status…
Key Takeaway: Rolling over your pension to an IRA can provide more flexibility and control over your retirement savings. It allows you to choose your investments, lower fees, and consolidate your retirement accounts in one place. To be eligible for a pension rollover to an IRA, you need to have left your job or reach…
Key Takeaway: Pension funds are retirement savings plans that employers establish for their employees to contribute to while employed, and withdraw from in retirement. There are two main types of pension funds: defined benefit plans and defined contribution plans. Defined benefit plans guarantee a specific benefit amount upon retirement, while defined contribution plans specify the…
Key Takeaway: Calculating your Social Security retirement benefit uses your Primary Insurance Amount (PIA), which is based on your earnings history. Your PIA can be affected by factors such as your age, income, and retirement age, so it’s important to understand how these factors impact your benefit. If you work while receiving retirement benefits, your…
Key Takeaways: The Net Investment Income Tax (NIIT) is a 3.8% tax on certain investment income that applies to individuals, estates, and trusts whose income exceeds certain thresholds. The tax is designed to help fund the Affordable Care Act (ACA). The calculation of the NIIT involves determining your net investment income and your modified adjusted…
Key Takeaway: Investment banking applications vary in terms of their opening dates, depending on the bank and the location. It is important to research the individual banks to determine when their applications will be open for the upcoming year. Applications for investment banking roles typically open in the late summer or early fall of the…