Personal Finance Articles - dummies (2024)

Stocks Day Trading For Dummies Cheat Sheet

Cheat Sheet / Updated 02-22-2024

If you want to get started in day trading, doing some preparation before you dive in dramatically increases your odds of success. From setting up your trading business (and it is a business) and learning trading jargon to tracking the markets with technical indicators and calculating your performance, these articles get you on your way.

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Funds Mutual Fund Investing For Canadians For Dummies Cheat Sheet

Cheat Sheet / Updated 02-22-2024

Mutual funds have been around for decades and despite other types of investments finding their way into investor portfolios, these securities are still king in Canada. Despite their still sky-high fees, mutual funds offer investors an easy way to buy into a diversified basket of stocks and bonds, which is really all you need for growing your wealth. Here are a few key points to keep in mind when considering these investments.

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Taxes Taxes For Dummies: 2024 Edition Cheat Sheet

Cheat Sheet / Updated 11-21-2023

Taxes are a part of life. Love them or hate them (okay, no one loves paying them!), everyone has to deal with them. The Taxes For Dummies: 2024 Edition Cheat Sheet is here to help guide you through tax challenges with some straightforward strategies.

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Bonds Bond Investing For Canadians For Dummies Cheat Sheet

Cheat Sheet / Updated 11-21-2023

If you want to invest in bonds, you need to know how to read the bond ratings that the big three rating companies use in order to help you select bonds in a risk-aware way. Knowing the right questions to ask about a bond can save you money, and you can find answers to many of those questions on the Internet.

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Real Estate Real Estate Investing All-in-One For Dummies Cheat Sheet

Cheat Sheet / Updated 11-03-2023

Successful real estate investing requires smart decisions. To start investing in real estate quickly and easily, ask a few important questions, discover different ways to invest in residential property, and build an effective real estate team.

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Estate Planning

Cheat Sheet / Updated 11-01-2023

Worried about what will happen to your assets after you pass away? This Cheat Sheet will help you plan for your future, with tips on how to reduce your estate taxes, helpful information on whether you need life insurance, and a listing of the key pieces of information your loved ones will need after you’re gone.

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Veterans' Benefits Top 10 Things to Know about Veterans Benefits

Article / Updated 10-23-2023

Veterans are often surprised at the number and types of benefits that are available. If you're just getting started in applying for veterans benefits, there are some basic things you should know.Nobody is going to hand you your benefitsUnfortunately, that would be too easy. Instead, you have to know what benefits there are, you must find out what the eligibility criteria is to receive a particular benefit, you need to know which government agency is in charge of that benefit, and then you have to ask for the benefit.The definition of veteran varies when it comes to veteran benefitsYou would think, by now, that our government would agree on who is entitled to call themselves a veteran. You’d think so, but you’d be wrong. Unfortunately, there’s no single legal definition for the term veteran when it comes to veterans benefits. Because different benefits were enacted into law at different times by different Congresses, each benefit has varying qualification criteria.You can qualify for some benefits with just one day of military service. Other benefits require you to serve a minimum amount of time. Still others require that you meet certain conditions, such as having a disability resulting from military service.The government doesn't know if you're a veteran or notYou’d also think that the government would have some kind of massive computer system that would have all the details about your service in the United States military. You would think Uncle Sam would know when you served, where you served, how long you served, what medals you may have earned, and what kind of discharge you received. Once again, you’d be wrong.You must prove you deserve veteran benefitsMaybe in the future, but right now if you want a particular benefit, it’s up to you to prove your status as a veteran. You do this by providing copies of your military discharge paperwork.You might not need an honorable discharge to get veteran benefitsYou may be one of those who think that you need an honorable discharge to qualify for a veterans benefit. Many veterans believe that. The truth is, some benefits require an honorable discharge, but there are many benefits you can receive with a general or other than honorable discharge as well."No" to veterans benefits doesn't always mean noYou may ask for a benefit and be told no. You may be told that you’re not eligible for the benefit because of this or that, even though you believe that you meet the eligibility criteria. Maybe you asked for a benefit years ago, only to be told you don’t qualify, so you gave up.Maybe you were told no, and you don’t even know why. The Department of Veterans Affairs (VA) has developed a bad habit over the years of phrasing its rejection letters in such a way that even legal eagles couldn’t understand them.Fortunately, the agency isn’t allowed to do that anymore. A brand-new law (passed in September 2008 by your friendly neighborhood Congress critters) now requires the VA to use plain, simple, everyday language when it rejects a benefit claim. Wow! What a great idea! Why didn't anyone think of this before?Submit the right paperwork for your veterans benefitEven if the VA says no in simple, plain, everyday language, it doesn’t mean that it’s right. Most of the time when the VA rejects a claim, it’s because you didn’t provide the correct paperwork — what the VA calls supporting evidence.You can ask the VA to take another look at your case, and if it still says no (stubborn little rascal, isn’t it?), you can appeal the decision. There’s even a federal court that does nothing else but hears appeals for veterans benefit claims.Well-known veteran benefitsYou may be surprised to find out how many goodies are available to veterans and their family members. Some of these benefits are well-known, such as medical care and disability compensation. Other ell known goodies include free or low-cost medical care, cash payments directly from Uncle Sam, and plans designed to help you get a college degree or vocational training,Not-so-famous veterans benefitsYou may have never heard of other veteran benefits, ranging from loans to open a small business to free headstones when you finally move on to that big battlefield in the sky.In addition, you might not know there are programs that assist you in finding and getting your dream job, programs that help you buy a house or find a place to live in your golden years, shopping and travel perks, memorial and burial benefits, and services and programs available to surviving family members.

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Estate Planning Basics of the Schedule K-1 Form for Estates and Trusts

Article / Updated 10-09-2023

An estate or trust’s income retains its character, and so beneficiaries must be informed of this character. The Schedule K-1 (Form 1041) gives the beneficiary the specific allocation between all items of income, allowing easy transfer from the K-1 to the beneficiary’s Form 1040.When there is one income beneficiary, the total amount of the income distribution deduction (IDD) is shown on a single Schedule K-1, with allocations made between the different types of income. When there are multiple beneficiaries, you’re required to prepare a separate K-1 for each, with the total IDD divided among the beneficiaries on their K-1s in the same proportion as the distributions were made.Schedule K-1 allows your beneficiary to separate his or her income distribution into all the sorts of income received by the trust or estate. Because it is an attachment to Form 1041, you must distribute a copy of it to the income beneficiaries no later than the due date for Form 1041, as extended. Remember, the beneficiaries can’t prepare their 1040s until they receive their K-1s from you.Part I: Information about the estate or trustIn Part I, fill out the tax identification number (the TIN), the name of the estate or trust, and the fiduciary’s name and address. You also have the opportunity to check a box to indicate whether and when you filed Form 1041-T, Allocation of Estimated Tax Payments to Beneficiaries (Under Code Section 643(g)).By checking Part I, Box D of Schedule K-1, you tell the beneficiary that he or she now has credit for additional tax payments, even though the trustee originally paid them on behalf of the trust.Code Section 643(g) allows you to assign estimated taxes paid by the trust or estate to individual beneficiaries in the final year of the trust or estate. Because the trust won’t owe any tax in its final year, it doesn’t need the estimated tax payments.Form 1041-T may only be filed in the final year of the trust or estate, is irrevocable, and must be made on or before the 65th day of the year following the end of the trust or estate’s tax year. If you’ve made a Code Section 643(g) election and allocated the estimated taxes, you have to check Box E to indicate it’s the final year of the trust or estate.Part II: Information about the beneficiarySchedule K-1, Part II is about as simple as it gets. On line F, put in the beneficiary’s TIN, and on line G, fill in the beneficiary’s name and address.In Box H, choose between a domestic or foreign beneficiary, whichever applies. If the beneficiary lives in the U.S., no further information is necessary. If the beneficiary resides in a foreign country, you may want to consult with a tax advisor who can check the foreign tax treaties involved and make sure you’re not required to withhold U.S. income taxes on distributions to this beneficiary.

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Estate Planning How to Pay a Trust's Expenses

Article / Updated 10-09-2023

In addition to making payments to the beneficiaries, as trustee, you’re also responsible for paying the expenses you incur in administering the trust. The primary expenses include trustee’s fees, investment advice, accounting fees, and taxes.Trustees’ feesA trustee’s fee is the amount the trust pays to compensate the trustee for his or her time. There is no set trustee’s fee. You can choose to base it on a small percentage of the market value of the assets plus a percentage of the income earned by the trust. You may opt to calculate the number of hours you spend and bill by the hour. You may even charge a flat fee, which is more like an honorarium. What you may not do is overcharge.Trustee fees are an income tax deduction for the trust but taxable income to you. You must declare these fees on your Form 1040, where you place them on line 21, Other Income. If you’re a professional trustee, this income is also subject to Self-Employment Tax. Otherwise, it’s income taxable only.Trustee fees are typically paid both from principal and income so as not to burden either side unduly.Investment advice in a trustInvestment advice is deductible to the trust minus the 2 percent haircut to which miscellaneous itemized deductions are subject.Trust's accounting feesUnless you’re preparing Form 1041 by yourself, you also have to pay accounting or tax preparation fees. You may choose to pay these from income or principal, or a combination of the two. Accounting fees in a trust are usually charged on an hourly basis or on the complexity of the returns being prepared, and are fully deductible.Taxes in a trustState and local income taxes, real estate taxes, and personal property taxes are all deductible if paid by the trust on trust obligations. So, if the trust owns real estate, it gets to deduct those taxes. If, on the other hand, the trust pays the real estate taxes on property owned by the income beneficiary, the trust has actually made a distribution to the beneficiary. Here are some important things to keep in mind: If the trust is only paying a capital gains tax, you pay that from principal. If the trust is accumulating income, you pay the entire tax from principal because the accumulated income is transferred to principal at the end of each year and becomes part of the principal. On occasion, when you don’t transfer accumulated income to principal, you pay taxes on the ordinary income of the trust from the income side, and the capital gains taxes from the principal side.To the extent that income is available in the trust to pass out to a beneficiary, that tax payment becomes an income distribution, and the beneficiary will receive a Schedule K-1 from the trust.Unlike individuals, who may deduct state sales taxes rather than state income taxes, state sales tax deductions aren’t available for trusts. After all, trusts don’t buy anything except for services, and those services typically aren’t subject to sales tax.

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Commodities Invest in Commodities through Physical Silver

Article / Updated 10-09-2023

One of the unique characteristics of silver among other commodities is that you can invest in it by actually buying the stuff, as you can buy gold coins and bars for investment purposes. Most dealers that sell gold generally offer silver coins and bars as well. 100-ounce silver bar: If you’re interested in something substantial, you can buy a 100-ounce silver bar. Before buying it, check the bar to make sure that it’s pure silver (you want 99 percent purity or above). Silver maple coins: These coins, which are a product of the Royal Canadian Mint, are the standard for silver coins around the world. Each coin represents 1 ounce of silver and has a purity of 99.99 percent, making it the most pure silver coin on the market.The term sterling silver refers to a specific silver alloy that contains 92.5 percent silver and 7.5 percent copper (other base metals are occasionally used as well). Pure silver is sometimes alloyed with another metal, such as copper, to make it stronger and more durable.Just remember that if you’re considering silver jewelry as an investment, sterling silver won’t give you as much value in the long term as pure silver.

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