LLCs are required to pay Interest and Dividends (I&D) tax each year on any gross income from interest or dividend income that exceeds $2,400. For the current taxable period, this tax is imposed at a rate of 4%. This is planned to decrease to 3% after December 31, 2024, and eventuall...
1. Focus on paying off the debt first. If you have an emergency, use your credit cards. Yes that will put you in a bit more debt, but only IF it happens. Meanwhile with each dollar you put toward the debt the lower your interest rate burden. For more:https://jlcollinsnh.com/2015...
Some contend it can over time.Bettermentmakes this case. I’m not sure I fully buy the premise, but I do like the way they use your new contributions and any dividends to make it happen efficiently. It is a bit more work, but if you like you can also do this yourself with your in...
Special Dividends Used when favorable circumstances allow the firm to make a one-time cash payment to shareholders, in addition to any regular dividends the firm pays Liquidating Dividends Occur when a company goes out of business and distributes the proceeds to shareholders Stock Dividends Dividends...
Here in the USA the government taxes dividends, interest and capital gains. But it has also created severalTax Advantaged Bucketsto encourage retirement savings. While well-intentioned, this has created a whole new level of complexity. Volumes have been written about each of these and the strateg...
Part XXIV: RMDs, the ugly surprise at the end of the tax-deferred rainbow Part XXV: HSAs, more than just a way to pay your medical bills Part XXVI: Pulling the 4% Part XXVII: Why I don’t like Dollar Cost Averaging Part XXVIII: Debt –The Unacceptable Burden ...
It should be unproductive. While we’re talking about interest, let’s be sure this investment we are creating never pays any. No dividends either, of course. It should be immobile. If we can fix it to one geographical spot we can be sure at any given time only a tiny group of poten...
I am already teaching my daughter that, whatever part of it comes to her, it is not hers either. She is merely the custodian of it for the next generation. And it will be her responsibility to teach her heirs the same. Will this be foolproof and last “forever?” Of course not. ...
20% Bonds.VBTLX(Vanguard Total Bond Market Index Fund) Bonds provide income, tend to smooth out the rough ride of stocks and are adeflation hedge. But during times of inflation and/or rising interest rates they get hammered. 5% Cash. Cash is always good to have in hand. Cash is also ...
One caution. The US has come out of the 2008 debacle far more strongly than the rest of the world. However, there have been and will be times when the international markets outperform. Of course there is no predicting when. But if SIMPLX and FANCY are compared at that time, folks like...