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[ad_1] I remember a time when the best high-interest savings accounts paid annual yields of 4% to 5%. Those days are long gone. LONG gone. According to the FDIC, the national average savings rate is a paltry 0.05%. That means that the best high-interest savings accounts today are paying close to 20 times the national average! Thanks to the low-rate environment, it’s not a surprise that for the past several years, my clients have been griping about how their savings accounts pay next to nothing, even from the best high-interest banks. As painful as the interest situation is, switching to a top high-interest savings account to stash away some cash for a future financial goal or an unexpected emergency is a high-leverage money move you should make today. Sneak Peek: Our Top 2 Best Online High Yield Savings Accounts Discover Online Savings: 0.80% Open Account CIT Bank Savings Builder: up to 0.90% Open Account There are plenty of online banks that offer excellent terms. Don’t let your money sit in a savings account that’s going to be eaten by annual fees. You shouldn’t have to pay to let your money sit. All the banks on my list are great places to stash your cash. Each can provide different benefits, covered below. Ready to see current rates? Use our “live rates” tool for the absolute best rates in your area. Table of Contents The 7 Best High-Interest Savings Accounts in 2022 High-Interest Online Savings Accounts – Honorable Mentions Why You Need a High-Interest Savings Account What To Look For In an Online Savings Account Types of Savings Accounts The 7 Best High-Interest Savings Accounts in 2022 Discover  – Best Overall CIT Bank Savings – Great Ongoing Rates Ally Bank – Best User Experience BBVA Bank – Best Variety of Products HSBC – Consistently High Rates USAA – Best for Military Capital One 360 – Best for Trustworthiness Honorable Mentions 1. Discover Savings – Best Overall Get Started Interest Rate: 0.80% Initial Deposit Minimum: $0 Turn Your Savings Into Something If you’re looking for a bank to invest your savings in to earn very high-interest rates, check out Discover Bank. The account requires no minimum balance to open and charges no monthly maintenance fees. It also comes with 24/7 online access to your funds, online transfers to and from other banks, and direct deposits. As is the case with savings accounts and money markets with all banks, withdrawals and outgoing transfers are limited to no more than six per monthly statement cycle. 2. CIT Bank Savings – Great Ongoing Interest Rates Get Started Interest Rate: Up to 0.90% Initial Deposit Minimum: $100 Make The Smart Choice For Your Savings CIT Bank is a great choice if you are looking for a bank to store some of your cash for a rainy day. CIT Bank is in the upper tier of interest rates and is currently ahead of just about everyone else. On top of their high-interest rate, they also offer a bonus rate tier for customers that have more than $25,000 saved with them. CIT is also great because of its easy deposits. You can fund your account or add additional deposits via easy online transfer from your current bank, mailing in a check, or wire transfer. Read our full review. 3. Ally Bank – Best User Experience Get Started APY: 0.75% Initial Deposit Minimum: $0 Save Smarter, Faster Than Ever Ally Bank was built on the premise of getting rid of all the crazy fees that normal banks charge while giving customers great rates and great customer service. I mean, seriously? How can you not love that? A bank that is fighting to end banks gouging customers will get my vote every time. Ally also offers a robust set of products ranging from checking and savings to CDs, IRAs, and other investment options. 4. PNC Bank – Best Variety of Products Get Started Interest Rate: 0.01% Initial Deposit Minimum: $25 Creating Opportunities PNC (formerly BBVA) offers a wide variety of products and services, everything from small business loans to online savings accounts (because that’s why you are here right?). BBVA isn’t the most well-known bank on our list; however, they are one of the top largest U.S. commercial banks based on deposit market share. If you haven’t heard of PNC, you should take the time to familiarize yourself with their variety of products. 5. HSBC – High-Interest Rates, Low Minimums Get Started Interest Rate: 0.15% Initial Account minimum: $1 The World’s Local Bank HSBC offers consistently high-interest rates on its savings accounts. They also offer checking accounts,  loans and mortgages, investment and retirement accounts, and insurance. Here’s what you get with an HSBC high yield online savings account: High interest. HSBC is dedicated to being competitive on interest rates to attract new clients. Low minimums. $1 to open an online account for all savings, $1 minimum balance to receive APY on Everyday Savings. Easy access. Many of the online banks only let you do transfers. 6. USAA – Best for Military Get Started Initial Minimum Deposit: $25 We Know What It Means To Serve *You must have a family member who is serving/has served in a branch of the military. Aside from being an exceptionally reputable organization, as an online savings account, USAA offers several unique benefits that the other banks on this list don’t. You can get a HUGE variety of different products with USAA. They offer just about any financial or insurance product you could ever need, and having all of your accounts and product in one place is an impressive advantage. Here’s what you get with a USAA online savings account: Free access to virtually any ATM. No fees for withdrawals at more than 60,000 “USAA-preferred” ATMs. They will also refund you the fees of any ATM that isn’t one of the preferred machines. Low initial deposit. Similar to some of the other accounts, USAA does require an initial deposit, but it’s only $25. No fees. With a USAA savings account, you will not have any service fees or any

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[ad_1] I was so excited about the strawberry deal! They were pretty picked over, so I only ended up getting 3 cartons. And peaches were on sale, too! Here’s everything we ended up getting. The total was $61 even! I found some Dill Pickle Salad marked down again — which I was really excited about! I love that salad! I usually add a hard boiled egg to it for some extra protein. My kids were very excited about the cereal deal — just $1.27 per bag with the weekly digital coupon. Of course you better believe we got the limit of 5 bags! And the deli meat was just $2.97 and we found some rolls marked down and have some cheese in the freezer, so we’re using some of the meat for Turkey/Cheese Sliders. Yum! Here’s our plan for dinners this week using some of what I bought and some of what I had on hand already. [ad_2] Source link

[ad_1] IMF says reaches staff-level agreement with Argentina [ad_2] Source link

[ad_1] Hiring momentum will continue to remain robust in India, with more sectors apart from information technology looking to hire in the coming quarters of the year. Apart from IT companies, which have been on a strong hiring spree in the last two years, banking, financial services and insurance (BFSI), retail, supply chain and logistics, and manufacturing are seeing signs of positive growth. According to Quess Corp, the company that runs job platforms monster.com and Qjobs, the hiring trend is getting more broad based with not just technology roles, but also non-tech jobs seeing an uptick beginning financial year 2022-2023. Guruprasad Srinivasan, executive director and Group CEO, Quess Corp told FE that the company is seeing a good 20-30% jump in its hiring mandates in the current quarter over last year, and the momentum is sustainable for at least the next two quarters. “We are currently hiring for June, July and early August and the demand is high as we are sitting with 20,000-22,000-odd open mandates, which will be well over 30% for the same period last year. The demand other than IT is from logistics, supply chain, BFSI, manufacturing, retail and telecom,” he said. According to Srinivasan, there is a good bounce back in manufacturing with EV industry leading to significant hiring in automobile sector, and in the ancillary & component manufacturers for the segment, which is seeing a growth of 25% in hiring over last year. Additionally, semiconductor industry is also on a good hiring spree. Hiring by telecommunication players has also picked up after almost two to three years of sluggishness given the poor health of the sector, while retail is making a come back after almost eight quarters of slow hiring momentum. In terms of the roles too, while there is no sign of slowdown in the IT jobs, and these jobs continue to remain in majority, the good news is that companies are open to hiring in non-technology roles as well. “In BFSI, hirings have started for roles like field managers, area managers, territory heads, finance professionals and also in sales and marketing. However, it is not necessarily the traditional banks that are hiring but more financial technology companies in the likes of digital payment gateways or digital payment operational companies,” Srinivasan said. Similarly, in supply chain and logistics there are opportunities available for roles like warehouse heads, warehouse state heads and zonal heads, from companies not just in traditional logistics sector, but also e-commerce and logistics tech firms. In retail, the demand is up 30-35% over last year for temporary jobs. According to Srinivasan, while there is no sluggishness being foreseen till September, which is the peak hiring season with the onset of festive period in India, it is a wait and watch situation with some fresh Covid-19 cases getting reported in the country. “We are not seeing any signs of hiring slowing down right now, but we would be cautious for November and December, depending on how the trajectory of fresh cases getting reported in some states pans out,” he said. [ad_2] Source link

[ad_1] With a deadly combination of low housing inventory, reduction in refis and surging mortgage rates, consolidation in mortgage tech is expected.  Businesses and entire industries tanked during the pandemic, but it created an ideal environment for mortgage tech companies, some of which rode the wave to banner years and historic growth. With interest rates hitting all-time lows, lenders doubled their origination volume to more than $4 trillion in both 2020 and 2021, hired more staff and ramped up investment in technology to close loans faster. As the market has shifted, however, with mortgage rates rising in 2022 faster than forecast and lenders quickly cutting costs, some tech providers now are left vulnerable. That has led to a reckoning in the mortgage industry, which is in the midst of a rightsizing that has already resulted in layoffs at numerous firms. Layoffs at mortgage tech companies appear inevitable, along with other cost-saving measures, including diminished investments in technology. With a deadly combination of the tight housing inventory, reduction in refis and surging mortgage rates, consolidation seems to be the natural path.  “Rising tide raises all ships, but subsequently lowering tides drop off ships,” said John Hudson, executive vice president at Mortgage Financial Services.  “With less volume out there, it’s only a matter of numbers and math. Less loans equals less revenue across the board. You’re going to see some that’ll survive and some will simply not make it. You’ll be seeing a lot of mergers and acquisition activity in the mortgage tech space this year,” Hudson added.  The downturn in a highly cyclical mortgage industry is nothing new for solutions providers  with experience navigating the ups and downs in the market. And the well-prepared could ultimately benefit from current conditions if they seize the opportunity to absorb vulnerable newbies lacking sufficient capital to weather the storm. As such, a strategic merger or acquisition is emerging as one opportunity to outmaneuver the shrinking mortgage market.  Strategic M&As Intercontinental Exchange (ICE), the corporate parent of the New York Stock Exchange, earlier this month announced its intent to acquire Black Knight in a deal valued at $13.1 billion. The merger of the two biggest suppliers of mortgage loan software signals the potential creation of a dominant player in the mortgage tech industry.  Of the $387.2 million in revenue Black Knight made in the first quarter of this year, 57% came from the servicing software and about 66% of ICE’s first quarter revenue of $1.9 billion came from its origination technology, according to their earnings reports.   “From a client perspective, a fully integrated soup-to-nuts digital offering for mortgage origination and servicing should significantly reduce the cost of originating and servicing a mortgage,” according to an analyst who spoke on the condition of anonymity.  Executives from each company have suggested the businesses are complementary — ICE focuses on tech solutions for originators and Black Knight’s business model is dependent on servicers and the secondary market.  The deal isn’t expected to close until 2023 as executives must persuade regulators the acquisition doesn’t hinder competition.  Several mortgage analysts said smaller mortgage tech providers will be challenged by the giant ICE-Black Knight conglomerate during a market downturn in which revenues are plummeting, a number of smaller competitors, such as loan origination system (LOS) provider LendingPad, see an opportunity to push an alternative product to lenders. “There’s been a fair amount of discontent among lenders with loan origination systems,” said Dan Smith, vice president of sales and strategy at LendingPad. Focused on customer support and offering the latest tech stack that is easily configurable for lenders, LendingPad doubled in sales volume in a little over a year, said Smith, who declined to share specific numbers.  In July, LendingPad plans on rolling out ComplyIO, an automated compliance engine that scans data to see if a loan that is near closing complies with all the state and federal rules and regulations. The company said it will be offered both as part of an LOS and a standalone product. A handful of vendors made strategic acquisitions and acquisitions for capitalization in the fall of 2021. Seattle-based proptech firm Porch Group acquired point-of-sales software company Floify for $90 million in October and North Carolina-based publicly traded fintech firm nCino bought mortgage tech vendor SimpleNexus in a $1.2 billion deal the next month.  At the time, Porch said Floify’s brand would remain intact and investments were planned to help make the homebuying and moving process easier. The firm’s software —  which it says streamlines the loan origination process by allowing document sharing and communication between loan officers and real estate agents —  helped to close more than 77,000 mortgage applications per month, according to Porch.  nCino noted SimpleNexus operates a “per-seat subscription-based revenue model, enabling the company to generate financial results that are more predictable, recurring and not based on mortgage transaction volumes.” “I think they were looking toward the future,” said Tammy Richards, CEO of LendArch, a mortgage tech consulting firm. Period of ‘spend nothing’  It’s hard to assess how private mortgage tech companies are performing in a shrinking mortgage market, but layoffs suggest difficult days. Tomo, a fintech startup that aims to be a “PayPal for the mortgage industry,” laid off 44 employees, almost a third of its employees in late May.  Founded in October 2020 by former Zillow executives who envisioned a way to accelerate the mortgage approval process, the Tomo notched a valuation of $640 million after raising $40 million in Series A funding in March. Tomo wasn’t immune to the rapid rise in interest rates despite its focus on the purchase mortgage sector. “We are dialing back our market expansion plans and will focus on building tech enabled mortgage experiences that deliver faster, less costly and less stressful experiences for homebuyers and the real estate agents that serve them in our existing footprint,” said Greg Schwartz, chief executive officer at Tomo, said in a LinkedIn post announcing the layoffs.  ​​Publicly traded Blend Labs, which debuted on the New York

[ad_1] Isn’t it funny how childhood experiences shape our views of rich vs. wealthy, as well as who has money compared to who doesn’t? There are several memories from my own childhood that made me think I knew how to tell if someone was rich, yet one in particular still sticks in my mind. When I was in high school, there was a kid in my class who I definitely *thought* was rich. His family owned several fast-food restaurants and they had a huge house that was a lot nicer than mine. He also drove a brand new Dodge Stealth when he was just 16-years-old, which is pretty over-the-top when you think about it. In the meantime, his parents were more than happy to pay for all his friends to watch any pay-per-view event that came around – think OG boxing matches like Mike Tyson vs Evander Holyfield. This was a huge deal to me since my dad would never pay a few hundred bucks for me and my friends to watch a boxing match or some other pay-per-view sporting event. I could only imagine how rich his family was. After all, they always had extra cash to spend on cars, entertainment, and basically anything else they wanted. Now that I’m older, however, I know most people who spend lavishly on material possessions and “stuff” are rich but not wealthy. They might earn a lot of money, but that’s not the same as being wealthy. In fact, earning a lot of money can easily put people on the path to going broke. #ap95538-ww{padding-top:20px;position:relative;text-align:center;font-size:12px;font-family:Lato,Arial,sans-serif}#ap95538-ww #ap95538-ww-indicator{text-align:right;color:#4a4a4a}#ap95538-ww #ap95538-ww-indicator-wrapper{display:inline-flex;align-items:center;justify-content:flex-end;margin-bottom:8px}#ap95538-ww #ap95538-ww-indicator-wrapper:hover #ap95538-ww-text{display:block}#ap95538-ww #ap95538-ww-indicator-wrapper:hover #ap95538-ww-label{display:none}#ap95538-ww #ap95538-ww-text{margin:auto 3px auto auto}#ap95538-ww #ap95538-ww-label{margin-left:4px;margin-right:3px}#ap95538-ww #ap95538-ww-icon{margin:auto;display:inline-block;width:16px;height:16px;min-width:16px;min-height:16px;cursor:pointer}#ap95538-ww #ap95538-ww-icon img{vertical-align:middle;width:16px;height:16px;min-width:16px;min-height:16px}#ap95538-ww #ap95538-ww-text-bottom{margin:5px}#ap95538-ww #ap95538-ww-text{display:none}#ap95538-ww #ap95538-ww-icon img{text-indent:-9999px;color:transparent} Ads by Money. We may be compensated if you click this ad.Ad #ap95538-w-map{max-width:600px;padding:20px 0 10px;margin:0 auto;text-align:center;font-family:”Lato”, Arial, Roboto, sans-serif}#ap95538-w-map #ap95538-w-map-title{color:#212529;font-size:18px;font-weight:700;line-height:27px}#ap95538-w-map #ap95538-w-map-subtitle{color:#9b9b9b;font-size:16px;font-style:italic;line-height:24px}#ap95538-w-map #ap95538-w-disclosure{margin-top:10px;font-size:12px;color:#9b9b9b}#ap95538-w-map #ap95538-w-map-map{max-width:98%;width:100%;height:0;padding-bottom:65%;margin-bottom:20px;position:relative}#ap95538-w-map #ap95538-w-map-map svg{position:absolute;left:0;top:0}#ap95538-w-map #ap95538-w-map-map svg path{fill:#e3efff;stroke:#9b9b9b;pointer-events:all;transition:fill 0.6s ease-in, stroke 0.6s ease-in, stroke-width 0.6s ease-in}#ap95538-w-map #ap95538-w-map-map svg path:hover{stroke:#1261C9;stroke-width:2px;stroke-linejoin:round;fill:#1261C9;cursor:pointer}#ap95538-w-map #ap95538-w-map-map svg g rect{fill:#e3efff;stroke:#9b9b9b;pointer-events:all;transition:fill 0.6s ease-in, stroke 0.6s ease-in, stroke-width 0.6s ease-in}#ap95538-w-map #ap95538-w-map-map svg g text{fill:#000;text-anchor:middle;font:10px Arial;transition:fill 0.6s ease-in}#ap95538-w-map #ap95538-w-map-map svg g .ap00646-w-map-state{display:none}#ap95538-w-map #ap95538-w-map-map svg g .ap00646-w-map-state rect{stroke:#1261C9;stroke-width:2px;stroke-linejoin:round;fill:#1261C9}#ap95538-w-map #ap95538-w-map-map svg g .ap00646-w-map-state text{fill:#fff;font:19px Arial;font-weight:bold}#ap95538-w-map #ap95538-w-map-map svg g:hover{cursor:pointer}#ap95538-w-map #ap95538-w-map-map svg g:hover rect{stroke:#1261C9;stroke-width:2px;stroke-linejoin:round;fill:#1261C9}#ap95538-w-map #ap95538-w-map-map svg g:hover text{fill:#fff}#ap95538-w-map #ap95538-w-map-map svg g:hover .ap00646-w-map-state{display:initial}#ap95538-w-map #ap95538-w-map-btn{padding:9px 41px;display:inline-block;color:#fff;font-size:16px;line-height:1.25;text-decoration:none;background-color:#1261c9;border-radius:2px}#ap95538-w-map #ap95538-w-map-btn:hover{color:#fff;background-color:#508fc9} If you are a beginner stock trader or investor, choosing the right stockbroker is super important. Online Stockbrokers will guide you with their vast knowledge, so you can wisely invest your hard-earned dollars. Don't give it a second thought and click on your state today. HawaiiAlaskaFloridaSouth CarolinaGeorgiaAlabamaNorth CarolinaTennesseeRIRhode IslandCTConnecticutMAMassachusettsMaineNHNew HampshireVTVermontNew YorkNJNew JerseyDEDelawareMDMarylandWest VirginiaOhioMichiganArizonaNevadaUtahColoradoNew MexicoSouth DakotaIowaIndianaIllinoisMinnesotaWisconsinMissouriLouisianaVirginiaDCWashington DCIdahoCaliforniaNorth DakotaWashingtonOregonMontanaWyomingNebraskaKansasOklahomaPennsylvaniaKentuckyMississippiArkansasTexas View Results Rich vs. Poor: What’s the Difference Before I dive into all the differences between being rich and wealthy, I also want to point out that the stats are all skewed for those of us lucky enough to live in the United States. Incomes considered “poor” here could put you in the “rich” or “wealthy” categories in a number of developing countries. Plus, the American version of “rich” is basically unheard of in many regions around the globe. The World Bank classifies different countries into four different categories for analytical purposes — low income, lower-middle income, upper-middle income, and high income. When you look at the map on their website, you can easily see that the United States, most of Europe, and Australia are all high-income countries, whereas most of the continent of Africa and parts of Asia are considered low income and lower middle-income. They also break down average incomes in various parts of the world, and the figures are very eye-opening. Just look at the difference between incomes in the United States and some of the other countries listed, and you’ll quickly see what I mean. Average income in 2021-2022 (in USD): Argentina: $8,900 Bhutan: $2,900 Ghana: $2,200 Indonesia: $3,900 Myanmar: $1,300 Uganda: $800 United States: $65,900 What Does “Rich” Mean? With this in mind, I still want to nail down what it means to be rich vs. wealthy in the United States. For the most part, being rich in the United States means: Having a high income Making it obvious you spend a lot of money Having the best of everything How much money do you need to be considered “rich” in the United States? That figure can vary by quite a bit since all kinds of people use credit cards and loans to fund the lifestyle they want. You know the type — they work in a “regular” job where you know their salary, yet they somehow have an exotic car and a huge house. That said, most “rich” people in the United States earn hundreds of thousands of dollars, and there are tons of people who fall into this category. In fact, a 2021 Global Wealth Report from Credit Suisse showed that there were 21,951,000 millionaires in the United States that year. Further, 20,914,000 of those millionaires were in the top 1% of wealth holders worldwide. People who fall into this category earn a lot of money for sure, but that doesn’t mean they always keep it. It just means they earn that much in their jobs or with their business, and that they make sure everyone around them knows it. I have actually met people who fall in this category — a ton of people, in fact. Being Rich is Limited to Living a Rich Lifestyle I still remember the story of a married couple I worked with as a financial advisor. They each earned $250,000 per year, and they were only in their mid-thirties. My initial conversation with the couple helped me learn they wanted to retire at the age of 50, and that they were super motivated when it came to working hard for what they wanted. Still, looking over all their financial accounts left me absolutely dumbfounded. While they earned half a million dollars per year, they only had $17,000 in total assets. That’s right; they were in their mid-thirties and they wanted to retire at age 50, yet they

[ad_1] The post Tips for Tax-Efficient Investing appeared first on Millennial Money. There’s no getting around it: If you invest, you’re going to have to pay federal income taxes. The sooner you come to terms with this, the better.  The main reason you need to pay attention to taxes as an investor is that they can diminish your annual returns — stifling gains and making it that much harder for you to achieve your financial goals. If you’re not careful, taxes can derail your retirement plans and leave you with much more taxable income than you anticipated. Add it all up, and it’s obvious that tax efficiency is one of the best things that you can do to preserve your wealth. This article explores some strategies you can take to reduce the impact of taxes on your investment income. Table of contents Taxable vs. tax-advantaged accounts Taxable accounts Tax-advantaged accounts Tax-exempt accounts  Tax-deferred accounts Tax-smart tips for investors 1. Maximize tax-deferred retirement accounts How contribution limits work How a 401(k) rollover works  What is a 529 college education account? Health savings accounts  Using life insurance  2. Look into tax-loss harvesting  What is tax-loss harvesting? 3. Use a 1031 exchange for tax-deferred real estate growth  How a 1031 exchange works Further tips for tax-efficient investing  Watch out for funds  Cryptocurrency is not exempt from taxes Reduce taxes through charitable donations Frequently Asked Questions What are tax-efficient investments? What is a loss carryforward? What happens if you open a 529 account and your child doesn’t go to school? What happens if you exceed HSA contributions? The Bottom Line Taxable vs. tax-advantaged accounts There are two types of investment accounts: taxable and tax-advantaged accounts.  Taxable accounts Taxable accounts do not have any tax advantages. In other words, you’ll pay taxes on any capital investment returns — or realized gains — that you make. You’ll also receive a tax bill for qualified dividends and any interest income you accrue. For example, a brokerage account is a taxable account. This type of account can provide direct access to stocks, municipal bonds, index funds, exchange-traded funds (ETFs), mutual funds, and real estate investments. Brokerage accounts are flexible, as they are generally liquid. However, you have to pay taxes on the money that you make in this account when you trigger a taxable event (e.g., selling stock for a profit). When you have a brokerage account, it’s important to pay attention to how long you hold your investments. If you hold your investments for less than a year — meaning you trade a stock and make money on it within 12 months — you’ll have to pay a short-term capital gains tax based on your ordinary income tax bracket.  If you hold an investment for more than one year, you’ll pay a long-term capital gains rate of 0%, 15%, or 20%. Your capital gains tax rate will correlate with your tax bracket.  Tax-advantaged accounts Tax-advantaged accounts still require you to pay taxes. However, they give you tax benefits in the form of more flexibility by letting you choose when you pay Uncle Sam. Still, there are a number of nuances between the different account types, so it’s important to do your due diligence to see what options are available to you. Tax-exempt accounts  Tax-exempt accounts like Roth IRAs and Roth 401(k)s allow you to contribute after-tax dollars to fund your retirement. In other words, you won’t be able to receive an immediate tax break when you use either of these Roth accounts. The tradeoff is that your investments can grow on a tax-free basis for decades until you reach retirement age. Once you begin taking required minimum distributions during retirement, you won’t have to pay any taxes on those funds. Tax-deferred accounts Tax-deferred accounts like traditional 401(k)s and traditional IRAs work a bit differently. With these types of accounts, you receive an upfront tax break, meaning you can write them off for a lower tax bill. However, you’ll have to pay taxes when you touch the    money in retirement. The tradeoff is that you’ll have more funds to grow over time while lowering your income tax rate in the near term. Tax-smart tips for investors Now that you have a basic idea of how taxes work, here are some ways to reduce what you owe. 1. Maximize tax-deferred retirement accounts There’s nothing wrong with opening a brokerage account. Investors often do this to fund short- to medium-term savings.  For example, you may open a brokerage account if you’re saving for a house or a car. A brokerage account can produce strong gains that exceed the interest you would otherwise make by keeping your cash in a savings account.  However, as an investor, you need to think longer than five or 10 years down the road. It’s critical to maximize your retirement savings so that you can take care of your future self. By putting your money into 401(ks) and IRAs, you can reduce the amount that you have to pay upfront and/or in the future.  How contribution limits work An important thing to keep in mind when opening a tax-advantaged account is that there will be limitations on how much you can contribute.  For example, a 401(k) comes with an annual contribution limit of $20,500 for the tax year 2023 — meaning that’s the maximum amount that you can contribute to the account without facing a penalty. This is on top of any money your employer might put in your account. Roth IRAs and traditional IRAs have much lower contribution limits of $6,000. You can have a Roth IRA and a traditional IRA, but your total contributions for both accounts must not exceed a combined $6,000.  If you work for yourself, you may be eligible for a Simplified Employee Pension (SEP) IRA, which has a contribution limit of $61,000 for the 2022 tax year.  If you are eligible for a 401(k) through work, you should strongly consider participating in the plan while opening an IRA

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[ad_1] Man drives into Berlin crowd, killing teacher, injuring 14 students [ad_2] Source link