47

It sounds like you're describing tax gain harvesting, where you intentionally realize capital gains in a low-tax-rate period in order to increase your cost basis and reduce future capital gains at higher rates.


42

It means both. The IRS currently calls them Individual Retirement Arrangements, as seen on the titles of Publications 590-A and 590-B. However, in the tax code, they are called Individual Retirement Accounts (Title 26, Section 408). In my experience, you will see it described as Individual Retirement Accounts nearly everywhere you look except for the IRS ...


38

Tax brackets refer to the range of taxable within which you fall. An income tax bracket usually refers to federal or state tax, not the combined rate. I have put here the tax brackets for 2016 for IRS and State of California. https://www.irs.com/articles/2016-federal-tax-rates-personal-exemptions-and-standard-deductions https://www.ftb.ca.gov/forms/2016-...


29

"A less B" means "A minus B". For example, "4% of X less 4,000" means "(4% of X) minus 4000", that is, 0.04 * X - 4000 This table describes progressive tax rate, where each bracket is taxed at its own rate. The higher the bracket, the higher the rate.


26

$400K is equity, $200K is principal owed on your mortgage. (This is also called 'Mortgage Balance' or Mortgage Debt', depending who is asking.) Cost basis is still $500K.


23

Hedging - You have an investment and are worried that the price might drop in the near future. You don't want to sell as this will realise a capital gain for which you may have to pay capital gains tax. So instead you make an investment in another instrument (sometimes called insurance) to offset falls in your investment. An example may be that you own ...


22

The term "tailwinds" describes some condition or situation that will help move growth higher. For example, falling gas prices will help a delivery company be more profitable. Lower gas prices is said to be a tailwind for the freight services industry. "Headwinds" are just the opposite. Its a situation what will make growth more difficult. For example, if ...


22

This means that once your application is approved, you'll need to pay your first and last month's rent and a security deposit. You may get your security deposit back when you terminate your lease, assuming you've met all the conditions in the lease and haven't damaged your apartment. If you decide to extend your lease, your last month's rent is usually ...


22

Many of these products are similar in nature and often depend on the issuing bank. Cashier's Check Are checks signed and guaranteed by the bank. This means the funds are coming from the bank instead of your account -- which usually means they immediately take the money from your account. This is usually the most secure of the options and usually doesn't ...


20

A "Fund" is generally speaking a collection of similar financial products, which are bundled into a single investment, so that you as an individual can buy a portion of the Fund rather than buying 50 portions of various products. e.g. a "Bond Fund" may be a collection of various corporate bonds that are bundled together. The performance of the Fund would be ...


18

Thanks for your question. Unfortunately, you're correct that these types of benefits often are not well explained. Let me apologize in advance for a long answer, but I'd like to provide the most comprehensive explanation I can. Additionally, there are a number of factors involved that weren't mentioned in your example, but that could substantially affect ...


17

This sounds a lot like an Equity-indexed Annuity. They date from about 1996 (there is a bit of skepticism about them, as they are tricky to understand for the typical investor). For instance, an equity indexed annuity pays a portion of the gain in an index (like S&P 500) when the stock market rises, and guarantees you won't lose if it falls. In an ...


17

Uber, FB and Airbnb are facilitators, since they, well, facilitate connections between the consumer and the provider. Alibaba and Amazon are in that role, too.


15

Lien is a record that can be put on your asset, meaning that any sale proceeds of the asset will go to a lien holder/lien holder must approve any transfer of ownership. The asset continues to belong to you though. Loan is when someone gives you money and you promise to pay it back. Mortgage is a specific case of a loan - loan is called "mortgage" when ...


15

D Stanley gave a correct answer. Let me offer an observation. In a year where any of your investments are down, I'd suggest taking the loss (being mindful of wash sale rules), and use it to offset up to $3000 of ordinary (15%) income or to offset the tax of a Roth IRA conversion. Then in future years, continue to use the tax gain harvest strategy. And note,...


14

Not sure why CAGR is a problem for both directions. I used to be a physicist, and, when I taught classes in graduate school, students always wanted to use the terms "accelerate" and "decelerate" to describe "speeding up" and "slowing down". But acceleration is just a vector with magnitude and direction. There's nothing special about slowing down that it ...


14

“Less” means “minus.” The table you posted describes a marginal tax rate. With a marginal tax system, parts of your income are taxed at different rates. The first Rs. 100,000 of your monthly income is tax free, the next Rs. 50,000 is taxed at 4%, and the next Rs. 50,000 is taxed at 8%. The text in the right column of the table is a formula to calculate ...


12

Going through the list of economies that currently use the dollar, all of them list cents as a fractional unit. In Hong Kong and Taiwan, the 1/100 fractional unit is still called a cent, but it's no longer in circulation in coin form and only finds use in financial markets or electronic payments. In countries like Malaysia, the word "sen" is used as the ...


12

This may vary some by the state, but the general facts are consistent broadly. The elements of check fraud typically are: Dishonor Check - the check must be dishonored by the drawee for one of the reasons set forth in the statute. Knowledge by the maker of the check that it would not be honored. Present Consideration - the check must have been ...


12

The "official" name depends on the card issuer, and may be trademarked. For Visa it is CVV2 (Card Verification Value). Sometimes it is called CVC2 (Card Verification Code), CID, etc etc - all the acronyms you've already found. "2" is because it is the second one, the first being invisible to the user (encoded on the magnetic strip). The two codes are ...


11

As others have stated, the current price is simply the last price at which the security traded. For any given tick, however, there are many bid-ask prices because securities can trade on multiple exchanges and between many agents on a single exchange. This is true for both types of exchanges that Chris mentioned in his answer. Chris' answer is pretty ...


11

You are right for every trade to take place there has to be a buyer and a seller, so essentially on the trade the number of buyers and sellers would be the same. However, what one means when there are more buyers than sellers is that the quantity of buy orders is more than the quantity of sell orders. This indicates that more people want to buy a particular ...


11

Wisegeeks are explaining it well, Investopedia are mentioning it briefly. The difference is in the accounting treatment. Earnings = revenue - production costs. Profits = total revenue - total expenses. The difference is hard to notice, but significant: for example if your company is making ice cream, then the earnings would be the revenue from selling ice ...


11

This depends on your definitions of assets and liabilities. The word "asset" has a fairly straight forward definition. Generally speaking, an asset in finance is something that you own/control that has economic value. The asset has value because it is generating income for you or because you expect that it will be worth something to someone in the future. ...


11

Sounds like you are talking about the denomination of the banknote.


11

An individual's net worth is the value of the person's assets minus his debt. To find your net worth, add up the value of everything that you own: your house, your cars, your bank accounts, your retirement investments, etc. Then subtract all of your debt: mortgage, student loans, credit card debt, car loans, etc. If you sold everything you own and paid ...


10

A junk bond is, broadly, a bond with a non-negligible risk of default. ("Bond" ought to be defined elsewhere, but broadly it's a financial instrument you buy from a company or government, where they promise to pay you back the principal and some interest over time, on a particular schedule.) The name "junk" is a bit exaggerated: many of them are issued by ...


10

It would be quite the trick for (a) the government to run all year and get all its revenue in April when taxes are due and (b) for people to actually save the right amount to be able to cut that check each year. W2 employers withhold the estimated federal and state taxes along with the payroll (social security) tax from each paycheck. Since the employer ...


10

FTSE is an index catering to the London stock exchange. It is a Capitalization-Weighted Index of 100 companies listed on the London Stock Exchange with the highest market capitalization . When somebody says FTSE closed at 6440, it basically means at the end of the day, the index calculated using the day end market capitalization of the companies, included ...


10

My experience is in economics, so it may differ from an accounting or personal finance perspective somewhat; that being said, I find it perfectly acceptable to use a term like CAGR when the rate is positive or negative. Economists talk about negative growth rates all the time, and it's universally assumed that growth rates can be positive or negative.1 ...


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