The employee contribution limit for 401(k) plans is increasing to $23,000 in 2024, up from $22,500 in 2023.
Taxpayers don't face an interest penalty for underpayment if the balance due is under $1,000 after their credits and other tax account information is factored in.
Banks typically invest heavily in government bonds, in the second quarter of 2021, for example, banks bought a record of about $150 billion worth of Treasurys; by putting their customers' deposits into investments
such as loans or securities, like Treasury bonds, banks make the money needed to pay interest on customers' deposits and pocket a profit; rising interest rates have caused the price of such bonds to fall,
feeding investor concerns that other banks might also be vulnerable.
To maintain a good life style when you retire, you need to aim to save money in your retirement accounts (e.g., 401K, Roth) at least 1 time of your salary by age 30, 2 times by age 45,
3 times by age 40, 4 times by age 45, 6 times by age 50, 7 times by age 55, 8 times by age 60, and 10 times by age 67.
In the US, around 3.8 people turned 62 in 2015, the age at which they can collect 75% Social Security benefits; about 3.5 million residents turned 65, about 3.4 million turned 66, the year they are entitled to full Social Security
retirement benefits; and estimated 4.6% of the working age population is receiving Social Security disability benefits.
In the U.S. as of the end of 2021 the number of 401(k) millionaires jumped 32 percent to 442,000, up from 334,000 a year earlier;
the number of IRA millionaires increased 30 percent, from 288,300 to 376,100, for the same time period; and the number of millionaires investing in the Thrift Savings Plan
(the federal government’s version of a 401(k)) increased nearly 50 percent, 112,880 TSP millionaires, up from 75,420 a year ago.
The lack of cryptocurrency regulation has led to a host of problems in the world of virtual currency exchanges, threatening to impair consumer confidence in cryptocurrencies and to slow widespread adoption. Since Bitcoin is a digital currency and its
value is very high, many people always look for ways by which they can steal your money. Hackers can infiltrate wallets and steal Bitcoins if they know a user's private key, which allows access to Bitcoins’ accounts.
When you use Bitcoins, there will always be the risk of hacks, and you can lose all your funds. There have been many cases of Bitcoin theft. The first Bitcoin exchange, Mt. Gox, collapsed in 2014 after hackers breached its security systems and siphoned away $500 million in customer money. In the U.S. alone 82,135 crimes
involving cryptocurrencies such as Bitcoin, Ethereum, and other digital currencies got reported. That’s up more than 24,000% from the 340 reported in 2016. Losses from Bitcoin or crypto-related crime rose 79% from 2020. Bitcoin or any cryptocurrency theft increased 516% from 2020, to $3.2 billion worth of cryptocurrency.
In 2021 scammers stole $14 billion in Bitcoin and other cryptocurrencies; 72% of stolen funds were taken from DeFi protocols. In 2020 there were 9,689 crypto crimes reported in Australia compared to zero in 2016. In 2021 the UK reported 8,801 crypto-related crimes up from 704 in 2016. In early 2/2022, the US Justice Department had seized over $3.6 billion worth of stolen 94,636 Bitcoins
and arrested a married couple accused of laundering the this cryptocurrency that hackers had stolen six years ago. While these figures are startling, they don’t take into account all the scams and theft that involved crypto currencies that did not get reported.
One of the significant risks of Bitcoins and other digital currencies is tax evasion and tax fraud. Bitcoin allows avoiding tax audits for cryptocurrency transactions and investments; because of this, failure to file, tax evasion, and tax fraud are all federal criminal offenses; ultimately, the violator could end up facing over $100,000 in fines and spend 1 year or more
in a federal prison; risking this kind of penalty is never worth it.
The money you put into Bitcoin or any cryptocurrencies is not safe from value fluctuations. Bitcoin is the investment risk, it’s a volatile investment. For example, in early 2021, Bitcoin's price reached an all-time high at over 68,000 dollars, but it dropped lower than 30,000 dollars in July 2021. Bitcoin or any cryptocurrencies
have no fundamental value, and therefore could drop to zero at any time.
In the U.S. the typical 65-year-old today will live to age 83; one in four 65-year-olds will live to age 90; and one in ten 65-year-olds will live to age 95. If you're earned 40 credits, you can start receiving Social Security benefits at 62 or at any month between 62 and full retirement age. However, your benefits will be reduced based on the number of months you received benefits before
you reach full retirement age. If your full retirement age is 66, benefits will be reduced: 25% at age 62; 20% at age 63; 12.33% at age 64; or 6.66% at age 65.
Credit cards can make it seem easy to buy expensive things when you don’t have the cash in your pocket—or in the bank. But credit cards aren’t free money. Most credit cards charge high interest rates—as much as 18 percent or more—if you don’t pay off your balance in full each month. If you owe money on your credit cards, the wisest thing you can do is pay off the balance in full as quickly as possible.
Investment management fees are charged as a percentage of the total assets managed. Example: An investment advisor who basically charges 2.1% for the mutual fund fee and the adviser fee (not
including other fees yet) means that for every $100,000,000 invested, you will pay $21,000 per year in investment fees.
There are two basic investment fees in a an investment calculation, mutual fund expenses and an adviser fee. The average expense ratio for actively-managed equity mutual funds is 1.2% and investment
grade bond funds have an expense ratio of 0.9%. The second expense is an adviser fee. The typical investment adviser charges about 1.0% per year on the first $1 million dollars of assets under management. This cost may be higher or lower depending on the amount being managed. Adding mutual fund expenses and adviser fees comes to 2.1% annually. No mutual fund fee nor professional advice fee is free;
you may be charged up to 15% per year in total cost, including personal advice fee and financial and insurance products' fees, if you do not take attention on your investments or shop around.
One of the benefits of the U.S. Federal Government Thrift Savings Plan (TSP) is that employees can get a match from the Federal government if they contribute up to 5 percent of their base pay to the plan.
The first 3 percent is matched dollar-for-dollar, while the next 2 percent is matched with 50 cents for each dollar the employees contribute. For 2018, an employee can make regular TSP contributions of up to $18,500; if the employee is 50 or older, he/she can contribute up to $24,500. However, if the employee is a deployed
service member or are serving as a civilian in a combat zone, he/she may be able to contribute up to $53,000 in a single year. The same figures also apply for 2018 to employees who participate in 401(k), 403(b), and most 457 plans. The TSP, a defined contribution plan employees and retirees as well as for members of the uniformed services, is well known for its incredibly low fees (e.g.; in 2015, the average net expense was around 29 cents for every $1,000 invested),
which is lower than many 401(k) plans.
In the U.S. an average couple will pay $155,000 in 401(k) fees over their careers.
The S&P 500 Index is very unstable; in the 41 years from 1957 to 1998, only 74 of the original 500 companies were still in the index.
After serving their terms, U.S. Presidents, by law, get lifetime pensions equal to the salary of a Cabinet officer (i.e.; Secretary), which is about $200,000 a year (as of 2015); this lifetime annuity payout would rise over time, as Cabinet salaries do.
Americans who work abroad for foreign companies (rather than companies with American ties) may not be required to contribute to
Social Security, which can affect the benefits they are eligible for when they retire.
In 2012, Chinese companies invested $10.7B in the U.S. They also invested $22.9B in Canada, $8.6B in Australia, $4.6B in Hong Kong, $3.9 in United Kingdom, $2.5B in Nigeria, $2.0B in Germany, $1.4B in Brazil, $0.7B in South Africa and $0.7B in Italy.
The highest-price stock currently sold on the NYSE is Warren Buffett's Berkshire Hathaway, Class A (NYSE: BRK-A), which sells for around $136,015.02 (as of December 19, 2012).
As of 2011, at $15.094 trillion, the U.S. economy, as measured by GDP, is larger than the next two largest countries' economies combined, Japan ($5.867 trillion) and China ($7.298 trillion).
During the past two years (2010-2011), the federal government charged at least 67 people involved with criminal cases of fraudulent or related dishonest conduct. The charges include securities fraud, ponzi, investment fraud, adviser fraud, wire fraud, mail fraud, tax fraud, conspiracy, embezzlement, and theft
while they worked for investment firms, such as Edward Jones, UBS, Smith Barney, ING Financial Partners, Merrill Lynch &. Co, MF Global Holdings Ltd., Credit Suisse Group AG, and Infinity Financial Group LLC. They stole at least $9,499,093,000 from their clients.
In January 1980 gold hit $850 an ounce, it took until January 2008 before investors who bought at the high broke even. In the 1980s, the price plummeted about 65%. In 2008, gold lost more than 30% of its value. The price of an ounce of gold was $1,917.90, a set record on August 23, 2011.
Many Chinese companies overstated their numbers to mislead people, especially U.S. investors and regulators. Ones of those are China Education Alliance (CEA) and
China Media Express. CEA reported its "training center" had "17 modern classrooms" for 1,200 students; actually the "center" had no desks and was all but empty.
The CEA' stock has plunged from $4.50 a share on November 26, 2010, to 76 cents on August 22, 2011 after the report was published. China Media Express, which inflated sales and profit, had its stock price collapsed, and trading in the shares was halted.
There are about 370 Chinese companies that obtained U.S. listings since 2004 without the rigors of initial public offerings; as of August 2011 at least eight of these companies had their registrations revoked, and over 25 ones have also reported other problems, including accounting issues and auditor resignations.
The average monthly pay in 2011 in China was $300, compared with monthly manufacturing wages of $120 in Vietnam.
In 2010 Santa Clara, California-based Intel, the world’s largest chipmaker, opened a $1 billion assembly and testing plant in Ho Chi Minh City. Finland-based Nokia, the world’s biggest maker of mobile phones, opened a plant in Vietnam to manufacture low-end phones in 2011.
Gerry Weber International AG Germany’s second-largest maker of women’s clothing, is increasingly shifting production from China to Vietnam with cheaper labor.
Since 1935, when President Franklin D. Roosevelt signed legislation creating the first
U.S. Savings Bonds, which have encouraged savings and a broad participation by Americans. Today, billions of dollars in savings bonds have stopped earning interests, but haven't been crashed. If you still have one, you may need to cash or
reinvest it so your money can start working for you again.
The U.S. has the world's largest gold reserve - more than 8000 metric tons, which is worth an estimated $288 billion (2/2010). German has 3400 metric tons of gold, which comes in second.
Since 1971, the return on gold has been 8.86% a year, while the average return on stocks has been 9.76%.
In terms of return on investment, buying a home at this time is actually not that great of an investment
Japan is one of the world's most earthquake-prone countries, and experts believe Tokyo has a 90 percent chance of being hit by a major quake between today and 2060. There is a 67 percent chance for at least one earthquake of magnitude 7 or larger in the San Francisco
Bay Area between 1990 and 2020. Most insurance companies do not cover home/building damaged by an earthquake
Berkshire Hathaway is the most expensive U.S. stock, the price for one Class A share of
Warren Buffett's Berkshire Hathaway (BRKA) briefly topped $100,000 in October 2006. It was reached $100,425 again on August 4, 2009. It was lost 32% of its value in 2008. As of August 7, 2012, its price was $128,240.
2008 is the worst year of the stock market since 1937. During 2008 there was around $10 trillion household wealth destroyed. Value wiped out from the
Dow Jones Wilshire 5000 is around $7.3 trillion. Decline of the
S&P 500 is 38.5% (loss around $4.8 trillion). The NASDAQ's loss is around 40.5%. The average loss among stock mutual funds is around 38%, and loss among bond mutual funds is around 8%
In terms of returns in 2008, while investors lose money, investment bankers continue receiving bonus. They receive money based on how many investment deals they can push through, not on the quality of the deals or long-term strategy.
Currently retirement savers can contribute up to $16,500 to a tax-deferred 401(k), which jumps to $22,000 for those age 50 and older.
The three oldest commodities exchanges in the US are Chicago Board of Trade established in 1848, Kansas City Board of Trade 1856, and New York Cotton Exchange 1870.
The three oldest stock exchanges in the US are Philadelphia Stock Exchange established in 1790, New York Stock Exchange 1792, and Boston Stock Exchange 1834.
The five oldest stock exchanges worldwide are Antwerp Bourse established in 1460, Lyons Bourse 1506, Toulouse Bourse 1549, Hamburg Bourse 1558, and London Royal Exchange 1571.
A stock is considered to be a share of ownership in a company that can be bought, sold or traded. A bond is a loan to a company that can be bought, sold or traded.
Always take advantage of your employer's 401k contributions.
If you want to retire after many years working for the US Federal government, you can submit the completed SF 3107, FERS Application
for Immediate Retirement, to your employing agency to apply for immediate retirement. You can obtain the form from your employing agency. You should give your agency at least 60 days notice before the date you intend to retire. Your agency will then complete the Schedule D, Agency Checklist of
Immediate Retirement Procedures, and the SF 3107-1, Certified Summary of Federal Service, which are included in the SF 3107, FERS Application for Immediate Retirement.
Social Security Administration (SSA) states it will never send a text asking for a return call to an unknown number. SSA will only send text messages if you have opted in to receive texts
from the agency and only in limited situations, including the following:
When you have requested or subscribed to receive updates and notifications from Social Security by text.
As part of Social Security's enhanced security when accessing your personal my Social Security account.
Social Security said it will never:
Threaten you with arrest or other legal action unless you immediately pay a fine or fee.
Promise a benefit increase or other assistance in exchange for payment.
Require payment by retail gift card, wire transfer, internet currency, or by mailing cash.
Send official letters or reports containing your personal information via email.
If an individual owes money to Social Security, the agency will mail a letter with payment options and appeal rights. "You should never pay a government fee or fine using retail gift cards, cash, internet currency,
wire transfers, or pre-paid debit cards," the agency wrote.
In the year you reach full retirement age, $1 will be deducted in benefits for every $3 you earn above a different limit. In 2017, the limit on your earnings is $44,880 but we only count earnings before the month you reach your full retirement age.
The TSP is a retirement savings plan for civilians who are employed by the
United States Government and members of the uniformed services. A choice of investment funds:
– US Government Securities Investment (G) Fund
– Fixed Income Index Investment (F) Fund (invested in the Barclays U.S. Debt Index Fund/Lehman Brothers U.S. Aggregate bond index)
– Common Stock Index Investment (C) Fund (invested in the Barclays Equity Index Fund/S&P 500 stock index)
– Small Capitalization Stock Index Investment (S) Fund (invested in the Barclays Extended Market Index Fund/Dow Jones Wilshire 4500 Completion stock index)
– International Stock Index Investment (I) Fund (invested in the Barclays EAFE Index Fund/EAFE - Europe, Australasia, Far East - stock index)
– TSP: Daily Rate & Share Price History.
– TSP: Calculating Periodic Returns and Compound Annual Returns.
Investment Banks
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New York Stock Exchange -
The New York Stock Exchange traces its
origins back more than 200 years, to the signing of the Buttonwood Agreement by
24 New York City stockbrokers and merchants in 1792. Centuries of growth and
innovation later, the NYSE remains the world's foremost securities marketplace.
NASDAQ -
As the largest and fastest growing major stock
market in the world, NASDAQ is home to the world’s leading companies—and a
well-recognized household name. In a recent U.S. poll, NASDAQ was #1 in awareness
and name recognition among investors.
American Stock Exchange -
The American Stock Exchange (AMEX) has been a pioneer in market
innovation for more than a century. As the nation's most diversified financial marketplace,
the AMEX conducts trading through an advanced centralized specialist
system that provides a marketplace for the investing public and its members.
Dow Jones Indexes -
Dow Jones Indexes develops, maintains and licenses
market indexes for investment products. Among its more than 3,000 indexes are
the world's best known stock indicator, the Dow Jones Industrial Average, and
the leading pan-European indexes, the Dow Jones STOXX Indexes.
Standard & Poors -
Standard & Poor's is one of the world's preeminent
providers of credit ratings, and for such globally recognized financial-market indices
as the S&P 500®. It also provides a wide range of other products and services designed
to help individuals and institutions around the world make better-informed financial
decisions with greater confidence.
TSX -
TSX Group is a cornerstone of the Canadian financial
system. It owns and operates Canada's two national stock exchanges - Toronto
Stock Exchange serving the senior equity market, and TSX Venture Exchange serving
the public venture equity market - as well as NGX, a leading North American
exchange for the trading and clearing of natural gas and electricity contracts.
Sao Paulo Bovespa -
Since November 16, 1998, the Fungible Custody Service
for stocks and securities, currently rendered by the São Paulo Stock Exchange/BOVESPA,
is formally provided by the Brazilian Clearing and Depository Corporation.
CBLC accounts for 100% of the Brazilian stock market’s settlement operations.
Australian Stock Exchange -
The Australian Stock Exchange Limited (ASX) was formed in
1987 through the amalgamation of six independent stock exchanges that formerly operated
in the state capital cities. ASX operates Australia’s primary national stock exchange
for equities, derivatives and fixed interest securities.
Swiss Exchange -
The SWX Group offers integrated solutions in specific
securities market segments on a cross-border basis. Through its shareholding in Eurex,
the SWX Group has a financial interest in the world's largest options and futures exchange.
Mexican Stock Exchange -
The Mexican Stock Exchange (Bolsa Mexicana de Valores)
is a private institution governed by the Mexican Securities Market Act. A foreign
individual can invest in Mexican securities listed on the Bolsa Mexicana de Valores
directly through authorized Mexican brokerage firms.
U.S. Securities and Exchange Commission (SEC) -
SEC, a US government agency, was established in 1934 to restore
investor confidence in US capital markets by providing investors and the markets with more reliable
information and clear rules of honest dealing.
