Buying a home is one of the biggest financial decisions many of us will make in our lives. Although prices vary across the country, mortgages are pretty standard throughout.
At 16 years old Ronaldo was targeted by Manchester United who dished out over $14 million to sign the player. At the time, it was a record fee which Ronaldo would later justify with three goals in Manchester’s 2004 FA Cup Final. Ronaldo gave Manchester a lot more than $14 million in performances on the field. He gave his blood, sweat, and tears to the game and the game gave him as much if not more. Continue reading
Medicare is a federal health insurance program created in 1965 for seniors in America. A US citizen or legal permanent resident aged 65+ (or under 65 receiving Social Security Disability Insurance or with End-Stage Renal Disease) would qualify for this program. In 2017, as many as 58.4 million individuals were enrolled in the program, and the numbers have steadily increased throughout the years.
Now, this begs the question: how is Medicare funded?
Image by rawpixel via Pixabay (https://cdn.pixabay.com/photo/2017/12/21/07/40/care-3031259_1280.jpg)
Sources of Funding
Medicare isn’t a free health care scheme, even though it is a form of social health care. Primarily, Medicare is funded by federal tax revenue (general revenue), payroll taxes paid by employers and employees, and premiums paid by its beneficiaries.
Learning about the many Medicare plans can be confusing, which is why insurance agents such as from themedicarestore.com are available to help people choose the best plans that suit their requirements and explore the alternatives.
How It’s Funded
Medicare Parts A, B, and D are funded by the Hospital Insurance (HI) Trust Fund and Supplementary Medical Insurance (SMI) Trust Fund, in which, both accounts are held by the U.S Treasury.
Medicare Part A
Medicare Part A benefits are funded by the HI Trust Fund. The HI Trust Fund is backed by the Medicare Tax, which is a requirement for all employers and employees to pay income tax to. Currently, the Medicare Tax for U.S employers and employers is 1.45% for the first $200,000 in wages, and 2.35% on all wages that exceed $200,000. This extra 0.9% is called the Additional Medicare Tax. Your benefits may differ if you are under a Medicare Advantage Plan, but these are the minimum benefits covered under Part A:
- Nursing home care
- Inpatient hospital care
- Hospice care
- Skilled nursing facility
- Home health care
According to Centers for Medicare and Medicaid Services (CMS), in 2018, the average per beneficiary cost for the Part A category was $5,241.
Medicare Part B
The SMI Trust Fund backs the Medicare Part B and Part D benefits. Part B covers:
- Ambulance and preventative care services
- Outpatient doctor visits
- Mental health
- Second opinions before surgery
- Durable medical equipment (DME)
Part D on the other hand covers:
- Prescription drugs
It is reported in CMS that in 2018, the average cost per beneficiary funded by the SMI Trust Fund for Parts B and D were $6,253 and $2,171 respectively.
Medicare Part C
Also known as Medicare Advantage (MA), these are private plans being offered by private health insurers that are approved by the government. This is an alternative Medicare route to Parts A and B, or collectively known as Original Medicare. One must enroll in Original Medicare to purchase MA, so that’s already around $135 (depending on income).
Other than that, the costs of Mas vary by plan, but it is capped to no more than $6,700 annually for inpatient and outpatient services. Typically, MAs cover vision, dental, hearing, and prescription drug coverage which aren’t covered by the Original Medicare.
Small business loans or SMB loans as the experts like to call it, is a good start to a future mega company. However, too many such companies have their founding CEOsdethroned or worse forced out of the entire system as such owners were unable to properly maintain their loans and/or sold out too much equity.
While it may be inappropriate to mention specifics, we’d take a quick scan across the causes of such situations and see how to remedy them.
It’s common for small businesses to take a low-value loan and assume it would be easy to offset once the business starts returning. Since the title ‘small business’ is used to describe a startup, not the entire scope of the business, a plot twist may happen as juicy opportunities may appear, and an enterprising individual won’t be able to look away from such.
The downside to this is that: as erupting opportunities keep demanding trial funds, it may be unable give instant returns to offset the loan and thereby prompt your funding institution to take financially disadvantageous actions against you. This could easily circle down into a cascade that leads to you losing your business.
On the other hand, ownership can also be lost by carelessly selling company shares and equity in a desperate effort to financially accommodate the coming growth.
To make sure you and your business are safe from such dire situations, here are key steps to follow.
Know the Legal Expanse Your Financier Is Allowed to Go and Work with That in Mind
Thankfully we are past the time when civil debts like that from an SMB loancan hand you a jail term, however, there are still drastic measures a financial institution can take against its debtors but then again there are ways to maneuver it.
So first off; know how your lender handles situations like this, so you’d have equivalent countermeasures to keep yourself from losing your business.
For instance, you can modify your loan or negotiate your credit card interest rates with your bank.
So your SMB loans had gotten you halfway there and you feel your income should do the rest?
You might be right, or wrong, and if you are wrong, you might have accidentally drowned yourself, as your business might have lost its remarkable prospects, therefore, putting you at a disadvantage on the negotiating tables with your financial institution.
Instead of walking through this myriad of risks, why not just walk around it?
Try a convertible bond instead, it has a feature of delaying the valuation of your business until a prominent investing group buys into it, or better still a try a flexible line of credit Loan
Don’t Give Out Too Much Equity
Agreeably so, self-funding is not the best for a startup business, as the startup may actually drown in its own insufficiency before it can rise at all. However, giving out too much ownership by equity could totally do the same thing, but at a later time.
Your ideal investor may approach you with a plain intent of taking a chunk of ownership and leaving, but seeing you open so much to acquisition could send such investor a message of possibly owning the business by himself in the future, and gradually working towards that.
Starting a business is not as easy as the popular planning and executing theory had suggested, there are lots of risks, and uncertainty involved. Therefore, there has to be a critical calculation of how the business would run, starting from its inception, location, funding choices and how to pay back.
In fact, to express its consequentiality, some financial experts would advise you have a single source of fund for your business and peripheral requirements. This is to make sure all efforts are put into only one possibility because paying attention to several alternatives may result in not really following any to the end.
However, this theory is under constant debate with adherents of the regular ‘several choices’ theory, because there’s no way to be entirely certain that the lone standing choice will pull through, and if that fails, the business ultimately fails as well.
The simple and most logical advice for a small business loan is a flexible line of credit loan. This is because you’d have cash flow as needed and you cease to pay interests while your credit card is not under use, besides there are several other alternatives if your credit score isn’t so sound.
Thanks for reading.
Let’s know what you think in the comments section provided below.
Twenty-three grand slams later and Serena Williams has a reported net worth of $180 million. The tennis legend started off local in Michigan, now thanks to countless hours of dedication and sacrifice, millions around the world are inspired by her meteoric rise to becoming one of the greatest athletes of all time. Continue reading
Investment is the life wire of lasting wealth. Resources, especially financial resources like money, is both a seed and a fruit. Seed because it can be used to create more money, and fruit it can be spent as rewards. To do the latter, you need to have given some time and effort to the former. For this to happen, you must be ready to cash in on investment opportunities.
Over the years, the fluctuations in stock pricing and the market at large have led to lots of double-mindedness. Investment in stock as now becomes a thing to critically examine before delving into. But the best things in life are reserved for the bold and daring.
Anyone who desires wealth must have an appetite for undertaking investment opportunities, howbeit healthy appetite. Whether you have the stomach for high-risk investment or not, the investment in stock is something to consider. For the most part, the financial situation of individuals determines how much they are willing and able to invest in portfolios such as stock.
The key to high returns in stock investment is to invest in companies and brands whose products are used daily. Since the durability of consumer goods cannot be completely ascertained and by the extension the profits of such companies. IT companies and companies with fast moving products are your surest bet.
If you are wondering which stocks to buy today, below are some ideas.
- Alibaba group holding limited
Despite the hit experienced by Chinese tech firms, the Alibaba group has managed to come back with a bang. From losing 35% of its value between June and October 2018. In November 2018 alone, the company made a one day sale of over thirty million, eight hundred dollars. Since then, the stock of the company has risen and continues to rise.
According to a report by money morning, “evenas Jack Ma prepares to step aside, thereis no reason to think that the company will slow down. And between Alibaba’s lean business model – it acts as a digital retail shelf rather than a warehouse – and rapid growth in Asia, this is the online retail giant with the most room to grow in the next few decades”.
The report goes on to suggest that everyshare of Alibaba you buy – trading at about $185 at the beginning of the second quarterof2019 – will be worth $2.1 million in four decades.
- Facebook Inc.
According to reports, “Facebook had a rough 2018, as concerns over privacy and security took a toll. The company has spent billions of dollars to shore up security on its platform, which has hurt profitability”.
With the recent introduction of stories to the various platforms owned and operated by Facebook Inc – Instagram, Facebook and messenger. The constant improvement to the products of the company would see the company rise higher in times to come, making its stock the stock to buy for high returns.
Any company with products that are techie would definitely experience progress in financial terms. MasterCard has been the number 1 online payment processing company for years and somehow manages to maintain this position. An investment in their stock is an investment that is sure to produce high returns.
There are other stocks you can invest in, but the essence of this piece has been to give you an idea of the kind of stocks to invest in for high returns. Start your investment today!
Buying shares and investing in the stock market is a slow way to build up wealth. It is steady too, it may take time to appreciate and for you to reap dividends. One good thing about shares is you can keep reinvesting your dividends to grow your net worth, that’s what Warren Buffet does.
Agreed, it’s a great way to make some investments for the future but you don’t want to do that unguided, the stock market always may seem easy to invest in, but it’s risky without the right knowledge. You don’t want to buy a share at $30 dollars and come back months later to find out it has crashed and there isn’t any hope of it rising again.
Warren Buffet invests in companies that pay dividends and are consistently growing, what should you look out for before you invest? The company should inspire confidence in you both for now and the future.
Let’s look at these few tips:
- Check the strength of the Industry
Investing in oil a couple of years back may have been a great decision for the period of the oil boom. But with the advent of other forms of energy, many countries are shifting focus from oil into others. And the price of oil in the global market has plummeted. So also, the shares.
To ascertain how strong an industry is means digging deep into the history and growth pattern of it.
Now here’s a quick question to help you think it through, using the oil and gas industry as an example. How many alternatives can the world get if they decide to minimize their usage of oil and gas? You’d find out there are a couple of great alternatives like solar, biodegradable energy and lots more.
What of the Soda production industry? People are going for healthier alternatives because of the spike in nutrition related diseases. There are also a lot of questions you need to look into to help you determine how strong and healthy an industry is.
- What is the debt profile?
Some companies post profitable stocks, and shareholders dividends always looks good, but there is more to check. The debt to equity ratio should not be too high.
Here’s why, even if the company pays great dividends, one day it is going to pay off the debts and it will come from the profits. So instead of dividends increasing, it will reduce at some point in time. The ideal stock to buy is that which the debt to equity ratio is not more than 1.00.
- Check for Consistent growth
You need to check how great a company’s growth is. That means you should keep an eye on the cash flow. If it isn’t positive, take a break.
Positive cash flow means a company’s assets are increasing, it’s having turnover and can pay its expenses. So, look out for growth and cash flow.
The hot stocks to buy right now are those with a strong industry, low debt and a consistent growth and earning rate. The growth and earning rate should be from 5 – 15% in about 5 years. It could be more, but more is not advisable
And when you find all these factors right in an intended investment, reinvest your dividends when it comes, and continue reinvesting it.
Investopedia estimates his net worth is between $700 million and $1 billion. Other’s say his net worth is $560 million. Whatever it is, there’s one thing we can all agree on—he’s one of the greatest if not the greatest defensive boxers of all time. Continue reading
You may be attracted to the security, the responsibility or the intensity of accounting – or maybe all three. Regardless, before you take the plunge, you are probably wondering if the swim is worth the wet.
Image Source: Flickr
Accountants have an opportunity to make big money and control even more. The path is relatively clear; for instance, this guide provides guidance on how to master the CPA exam. You have more resources and guidance than perhaps any generation of potentates before you, but you still have to do your part.
Here’s your part.
“You have to pay the cost to be the boss” or “it takes money to make money.” Either one of those idioms could apply here; take your pick. The bottom line is that you will pay for the attempt at becoming an accountant.
This is a relatively small investment for a confident acolyte, as you will earn the money back within the first few hours of your professional employment. Having an upfront cost for the CPA exam in place also encourages some people to study harder. Are you one of those people?
You will pay at least $50 for the CPA exam application fee. The fee only applies assuming that your application is accepted and you do not let your authorization to test (ATT) expire.
Exam fees will run you an average of $193.45 per section. The sections on the CPA come a la carte; so depending on the certification you want, you will pay more or less.
Next, your state registration fee will apply based on the number of CPA exam sections that you choose to take. Signing up for multiple sections gives a slight discount. One section costs $63; two, $81; three, $99; and four $177.
If you are in a state that requires passing an ethics exam upon successful completion of your CPA exam, then you will pay for this privilege as well. Taking the AICPA ethics exam will cost you a minimum of $150, although you receive a study booklet included in the fee.
Finally, you will owe state CPA licensing fees, and you will also be responsible for maintaining your continuing education to the tune of 40 hours per year. Licensing fees range between $50 and $500. Your continuing education will run about $1000 per year.
There are additional costs if you fail sections repeatedly or if you are an international candidate.
Taking a CPA review course is completely optional. There is no requirement to show that you took one in order to become an accountant. You should know that the CPA exam is made to be an exclusive affair, however. You have a much better chance of passing when you study under the wing of someone who has already mastered it.
CPA prep courses usually run within a range of $1000 to $3000. Keep in mind that the course will not guarantee the successful completion of your journey. It provides the guideline for you, but you have to fill in the rest with your own sweat and blood.
Your Time Investment
Your CPA tutor cannot take the exam for you. Until the information from the course material makes its way into your brain, you need to continue your investment of time into the process. As a soon-to-be accountant, you know that time is money. There is an economic opportunity cost you take on when you choose to spend extra time studying for your exams.
This opportunity cost definitely varies from person to person. Are you willing to focus more so that your study time occurs in a shorter period? Do you have a natural predilection to the topics being studied? Only you can really affirm how much this investment is worth to you. This is both an advantage, because you control the entire process; and a disadvantage, because you control the entire process. There is no one to blame if things go wrong.
Is becoming an accountant worth the investment? Now that you have the numbers, you can make an informed choice. Good luck, study hard, and make your next move your best move!
Cryptocurrency is a new type of asset that has been drawing the attention of traders all over the world. Because cryptos represent virtual assets, a cyber-based form of currency, the rules and guidelines for making a profit in the marketplace of cryptocurrency are quite different from those that govern traditional stock and bond trading.
The first thing for beginners to do is figure out which of the dozens of major cryptocurrencies to trade. After that, you’ll want to master the basic “mechanics” of trading cryptos. Finally, for those who want to maximize their profits without putting a huge amount of capital at stake, there’s the option to trade Contracts for Difference on cryptocurrencies. Here’s how it works.
The Main Currencies for Trading
One thing investors should do first is choose the cryptocurrencies that suit their own trading personality. There are hundreds of cryptos out there, but only a few that are considered major players. Plus, new ones are cropping up all the time so it’s usually a wise move to choose a few that have been around a while and built up very large followings. As is the case with stocks and bonds, the more actively-traded the asset, the easier it is to sell or buy at any given time. More buyers and sellers make for an active marketplace. Right now, the most actively-traded cryptocurrencies include Bitcoin, Ethereum, Zcash, Litecoin, Monero, Ripple, Dash, Cardano, NEO, Bitcoin Cash, and EOS. There are hundreds more, but these are the ones that see 90 percent of the daily trading action.
How to Trade
The first two items that any crypto trader needs are an exchange, and a virtual wallet to safely store the keys to their currency. As typical crypto exchanges are largely unregulated, you will want to ensure you are using a reliable and security focused service. Forex brokers are quickly getting into the mix of cryptocurrency trading. They are often regulated by the geographical jurisdiction in which they reside. It’s no wonder they are booming in popularity, as they solve the problem of “peace of mind” for traders that are leery about putting too much of their money into an unregulated account. You simply need to select an exchange where you can execute trades. Many beginners use exchanges like easyMarkets for trading Contracts for Difference on cryptocurrency.
Trading Crypto with CFDs
People new to trading cryptocurrency usually want to test the waters with small amounts of capital before committing to larger trades. One of the ideal ways to begin is with Contracts for Difference. These unique financial instruments allow you to get into cryptos without owning the underlying asset.
You’re simply purchasing a “contract” the predicts whether the price of that particular cryptocurrency will go up or down. If you expect Litecoin, for example, to rise in value then you would purchase a CFD to buy at the current price. If the Litecoin market price goes up, then you have earned a profit that consists of the “difference” between your contracted buy price and the new, higher price. CFD trading also gives you the advantage of using leverage by trading on margin. The CFD exchanges, in addition, are much more secure from hacking incidents than the cryptocurrency exchanges are.