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- How To Invest In Commodity ETFs?: Commodities such as precious metals, oil, and basic agricultural products also add diversification to a portfolio, but investing in them directly can be complicated for everyday retail investors. Commodity ETF's make it easy to gain exposure to these vital economic resources.
- However, if you plan to give a commodity ETF as a gift, it’s important to be aware that many of these funds do not directly hold the underlying commodity, depending instead on derivatibes to track the asset’s performance, which may add to the risk level of these investments.
What Is A Commodity ETF?
A commodity ETF (exchange-traded fund) is a stock-traded fund that is invested in physical commodities. Commodities are economic inputs such as natural resources, precious metals, and agricultural products. Most ETFs are focused on just one type of commodity, but the way they are invested can vary. Some can hold the commodity in physical storage, in futures contracts, or track their performance by index.
Commodity ETFs are rapidly gaining popularity because they offer newbie investors a way to get into the commodities game with lower cost and risk.
Typically, if you were to invest in a commodity ETF, you won’t own the physical asset itself. Instead, you are investing in contracts that are backed by the commodity. Because commodities are so different from other types of stocks, commodity funds often create their own indexes.
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Financial And Retirement Planning Goals, Strategies for Every Decade of Life...
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For the rainy days, remember to develop an emergency fund that holds about three to six months of your living expenses in cash difficult time arrives because life has ups and downs. Better prepare than sorry. Prevention is superior of cure.
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- -------------COMMODITIES EXCHANGES INCLUDE:CHICAGO BOARD OF TRADE (CBOT)CHICAGO MERCANTILE EXCHANGE (CME)DALIAN COMMODITY EXCHANGE (DCE)GLOBAL BOARD OF TRADE (GBOT)EURONEXT.LIFFE (LIFFE)KANSAS CITY BOARD OF TRADE (KCBT)BURSA MALAYSIA DERIVATIVES (MDEX)LONDON METAL EXCHANGE (LME)NEW YORK MERCANTILE EXCHANGE (NYMEX)NATIONAL COMMODITY EXCHANGE LIMITED (NCEL)MULTI COMMODITY EXCHANGE (MCX)INTERNATIONAL INDONESIAN FOREX CHANGE MARKET (IIFCM)MARCHÉ À TERME INTERNATIONAL DE FRANCE (MATIF)-------------========
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The 4 Types Of Commodity ETFs
There are four different types of commodity ETFs that you should be aware of. As always, each type of investment has advantages and drawbacks. Your choice will depend on your personal investing goals, as well as your budget and risk tolerance. Here are the four types, immediately followed by an explanation of each:
Equity ETFs
Exchange-traded notes (ETNs)
Physically-backed funds
Futures-based funds
1. Equity ETFs
There are commodity funds that invest in companies that either produce, transport, or store commodities. These are referred to as equity ETFs or equity-based funds. These funds allow investors to get access to a specific sector, or multiple companies, but in a way that’s much less expensive than investing in the companies themselves.
This also provides a way to invest in commodities indirectly. The risks associated with physical and futures commodity ETFs can be avoided by investing in an equity fund. Also, equity fund expense ratios tend to be less costly. One disadvantage to equity ETFs is that the investor gets removed from the commodity by one layer.
2. Exchange-Traded Notes
The second type of commodity ETF is exchange-traded notes, or ETNs. This is unsecured debt, issued and backed by a bank with a maturity date. ETNs match the returns of an asset by investing in stocks, bonds, and options. The investor only has to pay capital gains when the ETN is sold, so this is a great option if you’re looking for a better tax structure. When investing in ETNs, be sure to research the bank and evaluate its credit quality.
3. Physically-Backed Funds
As you might have guessed, physically-backed ETFs hold physical commodities in their possession. As of now, these are limited to precious metals. Having physical possession of a commodity eliminates both tracking and counterparty risk.
4. Futures-Based Funds
Last but not least, futures-based funds are arguably the most popular type of commodity ETF. As the name indicates, these ETFs invest in a portfolio of futures, forwards, and swaps on the associated commodities. Investors enjoy not having to pay the costs associated with physically holding, storing, or insuring the commodity. However, you’ll want to be careful of the risks associated with futures contracts themselves.
Most futures-based funds are incorporated as limited partnerships. Therefore, 60 percent of capital gains are taxed as long-term gains, while 40 percent are taxed at the ordinary rate.
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Are Commodity ETFs A Good Investment?
Are commodity ETFs a good investment, despite the risks? Commodities are a great way to balance out your portfolio and diversify risk. This is because historically, commodities as an asset have a negative correlation against other assets, such as stocks or bonds. That means that when the value of one asset class goes up, the other goes down, and vice versa. Commodities also help hedge against inflation.
If you are interested in getting some exposure to commodities in your portfolio, ETFs are the way to go. You can enjoy the benefits that commodities have to offer, without putting yourself at the risk of investing in them directly.
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- ===============
- Wealth Management Resources, Knowledge And Meaningful Information At: Fruital Investment Group -Wealth management is an investment-advisory discipline which incorporates financial planning, investment portfolio management and a number of aggregated financial advice offered by a complex mix of asset experts in different areas. FACEBOOK.COM/FRUITALINVESTMENT--------------Usually, Wealth Management is the affair of: custodial banks, retail banks, financial planners and others .---; Private wealth management is delivered to high-net-worth investors. FACEBOOK.COM/VISIONONEHOLDING--------Generally this includes advice on the use of various estate planning vehicles, business-succession or stock-option planning, and the occasional use of hedging derivatives for large blocks of stock.---------Traditionally, the wealthiest retail clients of investment firms demanded a greater level of service, product offering and sales personnel than that received by average clients.With an increase in the number of affluent investors in recent years, there has been an increasing demand for sophisticated financial solutions and expertise throughout the world. FACEBOOK.COM/MONEYWISERS
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Best Commodity ETFs For Investors This Year...
Some investors also like to invest in commodity ETFs because they feel like they are investing in the very fabric of the economy. By investing in commodity funds, you’re taking a stake in the very supply chain of industry. Interested in getting started but not sure how?
SPDR Gold Trust -= PDR Gold Trust (GLD)
iShares Silver Trust - = iShares Silver Trust (SLV)
Aberdeen Standard Physical Silver Shares ETF -= Silvers Shares ETF (SIVR)
Aberdeen Standard Physical Palladium Shares ETF -= Palladium Shares ETF (PALL)
United States 12 Month Oil Fund -= USL, or United States 12 Month Oil Fund is one of the top oil funds.
United States 12 Month Natural - = USL, and then there’s UNL. United States 12 Month Natural tracks liquid natural gas instead of crude oil. This ETF tracks natural gas prices by holding a year’s worth of futures contracts.
Invesco DB Base Metals Fund - = DBB holds futures that are backed by zinc, copper, and aluminum.
Teucrium Corn Fund
Teucrium Soybean Fund -= (CORN) provides investors access to this commodity. CORN uses futures contracts
(SOYB) is the sister fund to CORN and opens the doors for investors to invest in soy.
Invesco DB Commodity Index Tracking Fund - = The Invesco DB Commodity Index Tracking Fund (DBC) represents futures contracts of the world’s 14 most traded commodities in the world.
Breakwave Dry Bulk Shipping ETF - = BDRY’s holdings consist of freight futures and reflects daily price movements.
iPath Series B Carbon ETN
United States Gasoline Fund - = Another commodity pool, the U.S Gasoline Fund (UGA) tracks movements in gasoline prices and allows investors to bet on rising prices. UGA
First Trust Global Tactical Commodity Strategy Fund - = FTGC is unique in that it’s main holdings are gold, aluminum, copper and silver. Its performance isn’t as impressive as other ETFs
Commodity trading can seem a little old school, but commodity ETFs have modernized how investors can gain exposure to precious metals, agriculture, and other goods.
Vanguard Commodity Strategy Fund = vcmdx www.facebook.com/buyheremarketenterprise
About VCMDX
The investment seeks to provide broad commodities exposure and capital appreciation. The fund's advisor employs an active investment management approach to invest the fund's assets in commodity-linked investments, which are backed by a portfolio of inflation-linked investments and other fixed income securities. www.buyheremarket.blogspot.com
- Index funds have become a major force in the investing world.For many years more than $1 out of every $5 invested in the equity markets here in the United States was believed to be invested through the conduit of an index fund.The Dow Jones Industrial Average, is a list of thirty blue chip stocks. This list is to be made up of a representative collection of stocks that are important to the economy of the United States.The S&P 500 , The NEW YORK STOCK EXCHANGE {NYSE}, The Russell 2000, The Nasdaq, Great Britain has London stock exchange, Canada TSX, South Africa JSE, GERMANY DAX - etc.. An index fund is simply a mutual fund that, instead of having a portfolio manager making selections, outsources the capital allocation job to the individual or committee determining the index methodology.=======When investors buy an index fund, they get a well-rounded selection of many stocks in one package without having to purchase each individually. And because these funds simply hold all the investments in a given indexfacebook.com/visiononeholding======How to Invest in Index Funds?Buying an index fund in 3 stepsA. Decide where to buy. Look at a broker’s fund selection, commission-free options and trading costs.B. Pick an index. Funds may track well-known indexes like the S&P 500 or specific industries or types of companies.C. Check investment minimum and other costs. Find the right fund for your budget.=========
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'' We all have the right – and perhaps even the obligation – to pursue it.
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'' No one cares about your money more than you do.
'' Money may not buy happiness, but it sure steamrolls a whole lot of problems.
WHAT IS BLOCKCHAIN TECHNOLOGY, AND HOW DOES IT WORK?
Blockchain: In Most Simple Words
Blockchain is a peer-to-peer decentralized distributed ledger technology that makes the records of any digital asset transparent and unchangeable and works without involving any third-party intermediary. It is an emerging and revolutionary technology that is attracting a lot of public attention due to its capability to reduce risks and frauds in a scalable manner.
Now here comes the question why is Blockchain a distributed, decentralized P2P network? A decentralized network offers multiple benefits over the traditional centralized network, including increased system reliability and privacy. Moreover, such networks are much easier to scale and deal with no real single point of failure. The reason why Blockchain is distributed is because of shared communication and distributed processing.
The P2P architecture of Blockchains provides several benefits such as greater security compared to traditional client-server based networks. A distributed P2P network, paired with a majority consensus requirement, provides Blockchains a relatively high degree of resistance to malicious activities.
Bitcoin and Blockchain: How They are Related?
Although the advent of Blockchain has taken the world by storm, many people still get confused about these two terms. Thus, it is important to understand how these terms differ and how they are interrelated.
Bitcoin is a cryptocurrency, which is an application of Blockchain, whereas Blockchain is simply an underlying technology behind Bitcoin that is implemented through various channels. So if you are working on Blockchain and learning Blockchain, then you are not actually learning cryptocurrency but learning how cryptocurrency works.
-------- TWITTER.COM/
Benefits of using Blockchain Technology
We have learned a lot about Blockchain technology. Now let’s explore what its benefits are.
Immutability
In a traditional database, you have to trust a system administrator that he is not going to change the data. But with Blockchain, there is no possibility of changing the data or altering the data; the data present inside the Blockchain is permanent; one cannot delete or undo it.
Transparency
Centralized systems are not transparent, whereas Blockchain (a decentralized system) offers complete transparency. By utilizing blockchain technology, organizations and enterprises can go for a complete decentralized network where there is no need for any centralized authority, thus improving the transparency of the entire system.
High Availability
Unlike centralized systems, Blockchain is a decentralized system of P2P network which is highly available due to its decentralized nature. Since in the Blockchain network, everyone is on a P2P network, and everyone has a computer running, therefore, even if one peer goes down, the other peers still work.
High Security
This is another major benefit that Blockchain offers. Technology is assumed to offer high security as all the transactions of Blockchain are cryptographically secure and provide integrity. Thus instead of relying on third-party, you need to put your trust in cryptographic algorithms.
============
Cryptocurrency:
What Is Cryptocurrency? Here’s What You Should Know
A cryptocurrency, crypto-currency, or crypto is a collection of binary data which is designed to work as a medium of exchange. Individual coin ownership records are stored in a ledger, which is a computerized database using strong cryptography to secure transaction records, to control the creation of additional coins, and to verify the transfer of coin ownership.
Cryptocurrencies are generally fiat currencies, as they
are not backed by or convertible into a commodity. Some crypto schemes
use validators to maintain the cryptocurrency. In a proof-of-stake
model, owners put up their tokens as collateral.
cryptocurrency?
Cryptocurrency is a form of payment that can be exchanged online for goods and services. Many companies have issued their own currencies, often called tokens, and these can be traded specifically for the good or service that the company provides. Think of them as you would arcade tokens or casino chips. You’ll need to exchange real currency for the cryptocurrency to access the good or service.
Cryptocurrencies work using a technology called blockchain. Blockchain is a decentralized technology spread across many computers that manages and records transactions. Part of the appeal of this technology is its security.
Are cryptocurrencies a good investment?
Cryptocurrencies may go up in value, but many investors see them as mere speculations, not real investments. The reason? Just like real currencies, cryptocurrencies generate no cash flow, so for you to profit, someone has to pay more for the currency than you did.
That’s what’s called “the greater fool” theory of investment. Contrast that to a well-managed business, which increases its value over time by growing the profitability and cash flow of the operation.-------
How do I buy cryptocurrency?
While some cryptocurrencies, including bitcoin, are available for purchase with U.S. dollars, others require that you pay with bitcoins or another cryptocurrency.
To buy cryptocurrencies, you’ll need a “wallet,” an online app that can hold your currency. Generally, you create an account on an exchange, and then you can transfer real money to buy cryptocurrencies such as bitcoin or Ethereum. Here's more on how to invest in bitcoin.
Coinbase is one popular cryptocurrency trading exchange where you can create both a wallet and buy and sell bitcoin and other cryptocurrencies. Also, a growing number of online brokers offer cryptocurrencies, such as eToro, Tradestation and Sofi Active Investing. Robinhood offers free cryptocurrency trades (Robinhood Crypto is available in most, but not all, U.S. states).
How do I protect myself?
If you’re looking to buy a cryptocurrency in an ICO, read the fine print in the company’s prospectus for this information:
Who owns the company? An identifiable and well-known owner is a positive sign.
Are there other major investors who are investing in it? It’s a good sign if other well-known investors want a piece of the currency.
Will you own a stake in the company or just currency or tokens? This distinction is important. Owning a stake means you get to participate in its earnings (you’re an owner), while buying tokens simply means you're entitled to use them, like chips in a casino.
Is the currency already developed, or is the company looking to raise money to develop it? The further along the product, the less risky it is.
It can take a lot of work to comb through a prospectus; the more detail it has, the better your chances it’s legitimate. But even legitimacy doesn’t mean the currency will succeed. That’s an entirely separate question, and that requires a lot of market savvy.
-----------
In the crypto world, you have: Standardization - Interoperability - Tradability - Liquidity - Immutability - Programmability.
--------------
Digital Asset - Digital Asset
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Digital Currency...
Non-fungible token...
What is a Non-fungible token (NFT)?
How do NFTs work?
What can you do with NFTs once you buy them? FACEBOOK.COM/
What is a token?
Technically, “token” is just another word for “cryptocurrency” or “cryptoasset.” But increasingly it has taken on a couple of more specific meanings depending on context. The first is to describe all cryptocurrencies besides Bitcoin and Ethereum (even though they are technically also tokens). The second is to describe certain digital assets that run on top of another cryptocurrencies’ blockchain, as many decentralized finance (or DeFi) tokens do. Tokens have a huge range of potential functions, from helping make decentralized exchanges possible to selling rare items in video games. But they can all be traded or held like any other cryptocurrency.
“Token” is a word that you hear a lot in cryptocurrency. In fact, you might hear Bitcoin described as a “crypto token” or something similar, because — technically — all cryptoassets can also be described as tokens. But the word has increasingly taken on two specific meanings that are common enough that there’s a good chance you’ll encounter them.
tokens). Because Bitcoin and Ethereum are by far the biggest two cryptocurrencies, it’s useful to have a word to describe the universe of other coins. (Another word you might hear with virtually the same meaning is “altcoin.”)
The other increasingly common meaning for “token” has an even more specific connotation, which is to describe cryptoassets that run on top of another cryptocurrency’s blockchain. You’ll encounter this usage if you become interested in decentralized finance (or DeFi). While a cryptocurrency like Bitcoin has its own dedicated blockchain, DeFi tokens like Chainlink and Aave run on top of, or leverage, an existing blockchain, most commonly Ethereum’s.
Tokens in this second category help decentralized applications to do everything from automate interest rates to sell virtual real estate. But they can also be held or traded like any other cryptocurrency.
----------------- TWITTER.COM/AGENTANTONY
Tokenization...
Tokenization?
Tokenization is the process of exchanging sensitive data for nonsensitive data called "tokens" that can be used in a database or internal system without bringing it into scope.
Although the tokens are unrelated values, they retain certain elements of the original data—commonly length or format—so they can be used for uninterrupted business operations. The original sensitive data is then safely stored outside of the organization's internal systems.
Unlike encrypted data, tokenized data is undecipherable and irreversible. This distinction is particularly important: Because there is no mathematical relationship between the token and its original number, tokens cannot be returned to their original form without the presence of additional, separately stored data. As a result, a breach of a tokenized environment will not compromise the original sensitive data.
-------------- KNOWLEDGEFINANCIAL.
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What is the Purpose of Tokenization?
The purpose of tokenization is to protect sensitive data while preserving its business utility. This differs from encryption, where sensitive data is modified and stored with methods that do not allow its continued use for business purposes. If tokenization is like a poker chip, encryption is like a lockbox.
Additionally, encrypted numbers can be decrypted with the appropriate key. Tokens, however, cannot be reversed, because there is no significant mathematical relationship between the token and its original number.
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What is Detokenization?
Detokenization is the reverse process, exchanging the token for the original data. Detokenization can be done only by the original tokenization system. There is no other way to obtain the original number from just the token.
Tokens can be single-use (low-value) for operations such as one-time debit card transactions that don't need to be retained, or they can be persistent (high-value) for items such as a repeat customer's credit card number that needs to be stored in a database for recurring transactions.
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What is the Encryption Process?
Encryption is a process during which sensitive data is mathematically changed, but its original pattern is still present within the new code. This means encrypted numbers can be decrypted with the appropriate key, through either brute computing force or a hacked/stolen key.
---------
What is the Goal of Tokenization?
The goal of an effective tokenization platform is to remove any original sensitive payment or personal data from your business systems, replace each data set with an undecipherable token, and store the original data in a secure cloud environment, separate from your business systems.
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Your situation, the markets and your goals will change as your lifestyle changes. = http://visiononeholding.
Don't forget to plan and manage your required minimum distribtions (RMDs) from IRAs and 401(k)s.
Optimizing these assets can require new types of planning and tax strategies. = TWITTER.COM/BUYHEREMARKETON
As you start to spend down your money, keep track of your spending percentage of your assets.
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Use the 4% rule to help monitor your plan over time. If your withdrawal rate from your assets starts nearing 8% to 10%, you might want to consider cutting back on expenses.
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=========
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What is a blockchain?
What are some advantages of blockchains?
They’re global: which means that cryptocurrencies can be sent across the planet quickly and cheaply.
They increase privacy: Cryptocurrency payments don’t require you to include your personal information, which protects you from being hacked or having your identity stolen.
They’re open: Because every single transaction on cryptocurrency networks is published publicly in the form of the blockchain, anyone can scrutinize them. That leaves no room for manipulation of transactions, changing the money supply, or adjusting the rules mid-game. The software that constitutes the core of these currencies is free and open-source so anyone can review the code.
========
CDP =
What is Collateralized Debt Position?
Collateralized Debt Position (CDP) is a smart contract based on the Etherum blockchain. It is a variation of financial market derivations created by MakerDAO back in 2014. CDP can simply be defined as a representation of a debt position that is backed by an underlying pool of assets.
DP allows users to deposits an asset into a smart contract as collateral for a loan on the MakerDao platform. After depositing the asset, the CDP holds the assets and allows the user to generate the equivalent USD value in Dai that they wish to borrow. Once granted these tokens, users can then transact with them just like any other cryptocurrency.
How can one use a CDP?
A user wishing to use CDP has to send a series of transactions to MakerDAO's smart contracts. The first step would be to create a Collateralized Debt Position through the MakerDAO system. Once this is completed, the user is then required to deposit assets to the account. Currency, MakerDAO only accepts deposits in ETH to be used as collateral. However, the company hopes to add more assets in the coming days.
The deposited assets are then accepted and held by the CDP. This gives the users access to generate or borrow some Dai. Importantly, for anyone to make a successful loan request, the collateral value should always remain 1.5 times the value of the Dai one wishes to borrow. As long as you have outstanding Dai debt, your collateral remains locked and unavailable to you.
================
Decentralized finance...
Decentralized finance, or DeFi, aims to use technology to remove intermediaries between parties in a financial transaction. The components of DeFi are stablecoins, use cases, and a software stack that enables the development of applications. The infrastructure and use cases for DeFi are still in development..
Decentralized Finance (commonly referred to as DeFi) is a blockchain-based form of finance that does not rely on central financial intermediaries such as brokerages, exchanges, or banks to offer traditional financial instruments, and instead utilizes smart contracts on blockchains, the most common being Ethereum.
Decentralized Finance (DeFi)
Decentralized finance, or DeFi, is a system by which financial products become available on a public decentralized blockchain network. That makes them open to anyone to use, rather than going through middlemen like banks or brokerages. Unlike a bank or brokerage account, a government-issued ID, Social Security number, or proof of address are not necessary to use DeFi. More specifically, DeFi refers to a system by which software written on blockchains makes it possible for buyers, sellers, lenders, and borrowers to interact peer to peer or with a strictly software-based middleman rather than a company or institution facilitating a transaction.
Multiple technologies and protocols are used to achieve the goal of decentralization.
Decentralized finance has no sanction, no manipulatin by the governments, nor the banking or financial institutions.
Collateralized Debt Obligation...
A collateralized debt obligation ( CDO ) is a complex structured finance product that is backed by a pool of loans and other assets and sold to institutional investors. A CDO is a particular type of derivative because, as its name implies, its value is derived from another underlying asset. These assets become the collateral if the loan defaults.
A collateralized debt obligation (CDO) is a type of structured asset-backed security (ABS). Originally developed as instruments for the corporate debt markets, after 2002 CDOs became vehicles for refinancing mortgage-backed securities (MBS). Like other private label securities backed by assets, a CDO can be thought of as a promise to pay investors in a prescribed sequence, based on the cash flow
=============
Yield Farming? Beginner's Guide
At its core, yield farming is a process that allows cryptocurrency holders to lock up their holdings, which in turn provides them with rewards.
In brief
- Yield farming lets you lock up funds, providing rewards in the process.
- It involves lending out cryptos via DeFi protocols in order to earn fixed or variable interest.
- The rewards can be far greater than traditional investments, but higher rewards bring higher risks, especially in such a volatile market.
It’s impossible to sail the crypto seas without constantly navigating through new trends and buzzwords. One of the latest ones you may have come across recently is yield farming—a reward scheme that’s taken the decentralized finance (DeFi) world by storm during 2020.
Arguably one of the main reasons people are drawn to the DeFi world, yield farming has seen inexperienced investors get burned and tech-savvy capitalists making their fortunes.
As with most things related to blockchain and cryptocurrency, the concept of yield farming can be intimidating at first, but fear not—we’re going to cover everything you need to know below, kicking off with what it is, how it works, and why you might be interested to explore it further.
With yield farming, the concept is the same: cryptocurrency that would otherwise be sitting in an exchange or in a wallet is lent out via DeFi protocols (or locked into smart contracts
, in Ethereum terms) in order to get a return.
Yield farming is normally carried out using ERC-20 tokens on Ethereum, with the rewards being a form of ERC-20 token. While this might change in future, almost all current yield farming transactions take place in the Ethereum ecosystem.
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Thank you God for strength and endurance, because trials only come to make us stronger! Be blessed my friends.
When you monitor your credit score, you can intervene quickly if it drops. You can address factors that influence your score, such as high balances, late payments or too many recent hard inquiries.
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ways To Build Excellent Credit
Your credit score is more than just how you use credit cards
“Credit score” encompasses far more than how you might use a credit card. And for many people, their score is built independently of credit card usage.
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You may have more credit options than you think
One of the misconceptions about credit is that you need to have a credit history to have access to credit options, such as credit cards. And it’s true that a solid credit history can be key for qualifying for certain credit cards, but there are still options available, even if you’re building credit or have a limited credit history.
The first option is a secured credit card. This card requires a cash deposit as collateral, which is usually equal to the card’s limit. If approved, the card then operates like a normal credit card — and following good credit habits can help build your credit score.
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Another option may be a retail card from a store you frequent. Retail credit cards often offer store perks, like discounts. They can also have high interest rates and low limits. But although they may be easier to qualify for if you’re still building credit, just know that retail cards may not be accepted everywhere.
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Protect Your Personal Information to Avoid Fraud
Your credit can be affected by identity theft if fraudsters access your personal information to open accounts in your name. To help keep your data safe, use a password manager to create and store unique passwords and avoid making financial transactions on public Wi-Fi networks, which could be vulnerable to hackers
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Create a Budget
To help pay off debt and keep your spending in check long term—especially if the chaos of the past few years affected your finances—take time in 2022 to make a budget. This process will offer clarity on the amount you're earning and how much you can safely spend on discretionary items. You'll then be more likely to make smart choices when you're tempted to use a credit card, and you can prioritize limiting your credit utilization
Dispute Credit Report Inaccuracies
You can get a free credit report from each of the three main credit bureaus at AnnualCreditReport.com. Check them each carefully, and file a dispute with the appropriate bureau if you find something on your report you believe shouldn't be there, such as an incorrectly reported late payment. You can also report the problem to the appropriate loan or credit card issuer, which may then update the information with the bureaus. Fixing any issues could give your credit scores a lift
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Add Rent Payments to Your Credit Report
If you regularly pay rent on time, add those payments to your credit report to boost the amount of positive information reported to the credit bureaus. You can do so by signing up with a service like RentTrack. In many cases, getting your landlord or property management company on board will limit the fees you'll be charged
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Keep Old Accounts Open
Even if you no longer use an old credit card, it's typically best to keep the account open. That's because your credit scores benefit from a long credit history and a high total credit limit. Closing established accounts will shorten the average age of your accounts and lower your total credit limit.
It will take years before an account closed in good standing drops off your credit report, but the effects on your credit utilization rate are immediate. If a credit card comes with a high annual fee you can't afford, closing the account could be a good option—or ask your issuer to downgrade the card to a no-fee version if possible.
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Limit New Lines of Credit
When you apply for a new credit card or loan, a hard inquiry will appear on your credit report, possibly leading to a brief dip in your score. Plan to apply only for the credit you truly need, after you've done enough research to understand which accounts you'll likely qualify for—and avoid new loans you may have difficulty paying—so you can help your credit improve.
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Apply for Loans Within a Short Time Period
Lots of hard inquiries in a short time could be an indication to lenders that you're searching for lines of credit you won't be able to pay. Smart borrowers, though, will apply for a few loans of the same type—such as a mortgage, car or personal loan—to compare rates. For that reason, credit scorers treat multiple hard inquiries of the same loan type made around the same time as one, reducing the negative effects on your credit score.
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Get a Loan With the Help of a Cosigner
Making on-time payments toward an installment loan, similar to making timely payments on a credit card, helps build credit history. Besides using a credit-builder loan, getting a traditional one such as a car loan can add positive information to your credit report and improve your credit mix.
If you can't qualify for a loan on your own, a cosigner can help—but make sure the cosigner knows what they are getting into. If you can't afford to repay the loan, it becomes their responsibility.
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Pay Off Credit Card Balances Every Month
In addition to lowering existing debt balances, minimize ongoing debt by making it a goal to pay off your credit cards each month. Zeroing out your balance each statement period keeps your credit utilization low, which is one of the best ways to strengthen credit. You'll also avoid incurring interest charges
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Track Your Credit Score
When you monitor your credit score, you can intervene quickly if it drops. You can address factors that influence your score, such as high balances, late payments or too many recent hard inquiries.
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How a taxpayer’s filing status affects their tax return..
Here are the five filing statuses:
- Single. Normally, this status is for taxpayers who are unmarried, divorced or legally separated under a divorce or separate maintenance decree governed by state law.
- Married filing jointly. ...
- Married filing separately. ...
- Head of household. ...
- Qualifying widow or widower with dependent child.
When preparing and filing a tax return, filing status determines:
- If the taxpayer is required to file a federal tax return
- If they should file a return to receive a refund
- Their standard deduction amount
- If they can claim certain tax credits
- The amount of tax they owe
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Here are the five filing statuses:
- Single. Normally, this status is for taxpayers who are unmarried, divorced or legally separated under a divorce or separate maintenance decree governed by state law.
- Married filing jointly. If a taxpayer is married, they can file a joint tax return with their spouse. If one spouse died in 2021, the surviving spouse can use married filing jointly as their filing status for 2021 if they otherwise qualify to use that status.
- Married filing separately. Married couples can choose to file separate tax returns. This may benefit taxpayers who want to be responsible only for their own tax or if it results in less tax than filing a joint return.
- Head of household. Unmarried taxpayers may be able to file using this status, but special rules apply. For example, the taxpayer must have paid more than half the cost of keeping up a home for themselves and a qualifying person living in the home for half the year.
- Qualifying widow or widower with dependent child. This status may apply to a taxpayer filing a 2021 tax return if their spouse died in 2019 or 2020, and they didn't remarry before the end of 2021 and have a dependent child. Other conditions also apply.
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Form 1040-X
Form 1040-X, Amended U.S. Individual Income Tax Return
- Form 1040X, Amended U.S. Individual Tax Return, is used to make corrections to Form 1040, Form 1040A, and Form 1040EZ tax returns that have been previously filed. Generally for a tax refund, this form must be filed within 3 years after the date that the original version was filed, or within 2 years after the date that the tax was paid, whichever is later.
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Form 4868
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Form W-7, Application for IRS Individual Taxpayer Identification Number
- An ITIN is a 9-digit number issued by the U.S. Internal Revenue Service (IRS) to individuals who are required for U.S. federal tax purposes to have a U.S. taxpayer identification number but who do not have and are not eligible to get a social security number (SSN
- Form W-7 to apply for an IRS individual taxpayer identification number (ITIN). You can also use this form to renew an existing ITIN that is expiring or that has already expired.
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Form FBAR Filing: How (and When) to Report Money in Foreign Accounts
If you're a U.S. citizen with money in offshore accounts, understanding the basics behind FBAR filing is key to having an easy tax season. Our experts tell you what you should know below.
As an American living abroad, it's no surprise that you may have a financial account (banking, pension, investment, etc.
What is an FBAR?
An FBAR is your Foreign Bank Account Report, also known as FinCEN Form 114. If you're in the reporting threshold, you submit it yearly.
The Foreign Bank Account Report exists to combat tax evasion, specifically reporting money and assets in foreign banks. Rather than filing with the IRS, you submit an FBAR with FinCEN, the U.S. Treasury Department's Financial Crimes and Enforcement Network. Failing to file means facing heavy penalties
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Form 1099-INT, Interest Income
- Form 1099-INT is a tax form used to report interest income.
- Form 1099-INT is prepared by interest payers with copies sent to interest recipients, the IRS, and the recipient’s state tax department.
- If you receive a Form 1099-INT, you will likely need to report it on your tax return, assuming you have a tax return filing requirement.
File Form 1099-INT for each person:
- To whom you paid amounts reportable in boxes 1, 3, and 8 of at least $10.
- For whom you withheld and paid any foreign tax on interest.
- From whom you withheld (and did not refund) any federal income tax under the backup withholding rules regardless of the amount of the payment.
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Tax Credit
- A tax credit is an amount of money that taxpayers can subtract, dollar for dollar, from the income taxes they owe.
- Tax credits are more favorable than tax deductions because they reduce the tax due, not just the amount of taxable income.
- There are three basic types of tax credits: nonrefundable, refundable, and partially refundable.
- A nonrefundable tax credit can reduce the tax you owe to zero, but it can't provide you with a tax refund.
Types of Tax Credits
- Nonrefundable Tax Credits. The remaining part of a nonrefundable tax credit that can't be utilized is lost, in effect.
- Refundable Tax Credits. Refundable tax credits are the most beneficial credit because they're paid out in full. This...
- Partially Refundable Tax Credits. Some tax credits are only partially refundable. The Child Tax Credit became.
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Understanding Tax Credits
Federal and state governments may grant tax credits to promote specific behaviors that benefit the economy, the environment, or anything else the government deems important.
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Common Types of Tax Credit...
Different Types of Tax Credits
Earned Income Credit - Credit For The Elderly And Disabled
Retirement Savings Contribution Credit - Mortgage Interest Credit
Family Tax Credit - - Child Credit - Child And Dependent Care Credit
Work Opportunity Tax Credit - American Opportunity Tax Credit
Foreign Tax Credit -
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Form 1099
Form 1099 is one of several IRS tax forms used in the United States to prepare and file an information return to report various types of income other than wages, salaries, and tips. The term information return is used in contrast to the term tax return although the latter term is sometimes used colloquially to describe both kinds of returns.- ==============
- Form 1040 For US citizens - resident aliens
- Form 1040NR for non-resident aliens , non-immigrant
- Form 1040SR For senior citizens 65 years age and above
- Form 1040x Used to make correction, amendment.
- Form 1040C For departing aliens.
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- Personal tax filing is not just about reporting wage income - Form W2.
- All of these must or should be reported:
- Interest income, form 10999 INT
- Dividend income, form 1099 INT
- Retirement income, form 1099R
- Social security benefits, form SSA1099
- State and local tax refunds, form 1099G
- Unemplyment conpensation, form 1099G
- Independent contractor, form 1099 MISC
- Income from shares/stocks,/securities, form 1099B
- Employee stock options plan {ESOP} form W2
- Income from pass-through entities, SCHEDULE K-1
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- TAX FORMULA OF: A-B-C-D-E
- 5 Principal ways to reduce your taxable income and tax liability...
- A = Ajustment - B= Benefits - c= Credits - D= Deductions - E= Exemptions
- Choose your tax preparer very wisely.
- Be very careful with unknown online websites tax filing...
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