Imagine if you invested $1,000 into a cryptocurrency that skyrockets 10,000x over the next few years. Congratulations, you turned $1,000 into $10 million, which may sound outlandish, but isn’t as uncommon as you might think in the wild world of crypto and NFTs. Now imagine if the government told you that withdrawals on the entire […]
In the US, there are two methods to calculate home office expenses: the Simplified Method and the Regular Method. Each method has its own rules and calculations, and pros and cons depending on your circumstances. Let’s go through them below. The Simplified Method is the simpler and easier method of taking a home deduction because […]
If you have assets in a 401k plan and are approaching retirement or considering leaving your employer, there are several options you can take. You can take a withdrawal, keep the old 401k (if your former employer allows it), or do a 401k rollover into an IRA or another 401k plan. What is a 401k […]
Most 401k plan providers will offer two different contribution options: Traditional pre-tax and Roth post-tax. Traditional pre-tax contributions are funded with pre-tax income, give you a tax deduction for the year, and grow tax-deferred. When you withdraw in retirement, it gets taxed as regular income. Roth post-tax contributions are funded with post-tax income, and don’t […]
OVERVIEW Roth retirement accounts like a Roth IRA and Roth 401k are extremely tax-advantaged. You get tax-free compounding and you don’t have to pay any taxes when you withdraw from your nest egg in retirement (no matter how large your gains). There are people who’ve turned a few thousand dollars into millions inside Roth accounts. […]
Retirement accounts are tax-advantaged investment accounts. Your money grows with tax-free compounding until retirement when you can start taking qualified distributions at the age of 59½. Depending on the type of retirement account, you could either get a tax benefit when you deposit money or when you withdraw. There are many different types of retirement […]
When you’re trading in your cash account, there are 3 different types of violations that you need to be aware of. With a cash trading account, you’re required to pay for all purchases in full by the settlement date, which is the day in which the trade becomes finalized. The settlement date is different from […]
Overview If you buy securities without having sufficient funds, and then sell those securities before depositing enough money to pay for them, a freeriding violation is triggered. Instead of purchasing the shares with your own money, you’re using the proceeds from the sale of the security. A freeriding violation is a trading violation that many […]
Overview If you trade through your brokerage’s cash account, you’ll see two different types of funds in your account: settled funds and unsettled funds. Settled funds (also called settled cash) refer to newly deposited funds (such as a check deposit or wire) and settled proceeds of fully paid for securities. Unsettled funds (also called unsettled […]
