In 1997 music artist Christopher Wallace (a.k.a. Notorious B.I.G or “Biggie”) released the album “Life After Death” posthumously (OK, so his estate released the album).
The album was extremely successful and included a popular song entitled “Mo Money Mo Problems” which eventually claimed the #1 spot on Billboard’s Hot 100 List.
Although the song focuses on Biggie’s adversity growing up on the “streets” and his eventual tribulations as a successful East Coast Rapper, the chorus line “The more money we come across, the more problems we see” is relatable to just about anyone’s personal finance situation.
So why do we seem to have more problems as we make more money?
Keeping Up With the Joneses:
Part of it has to do with keeping up with the proverbial “Joneses”. As a society, we have a tende
Read more…
When it comes to 401k contribution limits, or the combined total contribution you can make per year to all of your 401(k) plans including traditional 401(k) plan and Roth 401(k) plan, there are two rules that govern the maximum contribution amount. First is the percentage of your pay that your employer allows you to contribute. For example, if you make $40,000 per year and your employer allows up to 20% of your salary to be used for 401(k) contribution, then your maximum is $8,000. Second is the legal limit allowed by the IRS as shown below.
401(k) Maximum Contribution Limits
The contribution limit remained unchanged from 2009 to 2010. Here are the current contribution limits:
Year |
Contribution Limits |
2010 $16,500 2009 $16,500
401(k) Catch-Up Contribution Limits
If you are 50 years or older, you may also be eligible to make “catch-up” 401k contributions in addition to your regular 401(k) contributions — assuming your employer allows for this (unfortunately, not all employers are required to do this). 401(k
Read more…
When I graduated from college in 1999 several people advised me to purchase a house so I would have something to deduct on my taxes.
Without any deductions these well intentioned individuals felt I was exposing myself to an unnecessary amount of taxes and would be much better off if I bought some real estate.
I was single, I had no dependents to claim, and I was earning a decent income considering I was fresh out of college.
Read more…
Groupon is a fascinating study in the fusion of online and offline marketing tactics to drive local business. Couponing sites have come and gone over the years, but Groupon’s connection to social media is turning it into a bit of a movement.
A typical Groupon offer. Click to enlarge the image.
Here’s the basic idea: People sign-up to receive a once daily offer from local merchants. It’s one offer only, in one of the 29 or so cities (more soon) that have Groupon groups. But, the offer does not kick in until a set number of people jump on board. The offer also involves a buy in. In other words, a typical offer might look like the one in the image here – “Spend $12 to get $25? from a local pizza place. People who want the deal have to spend $12 to get it. Watching
Read more…
Your small business loan will be purchased by a new lender if your lending bank fails. Depending on how your loan is distributed, this may have a large affect on you or relatively little at all. Loans that were distributed in one lump sum will not see a large change. If you use a credit card to access your loan amount, then the loan may be temporarily suspended. This is the process:
FDIC Handles Selling of Assets
When a bank fails, the Federal Depository Insurance Company steps in to handle the entire liquidation process. Similar to a personal bankruptcy, when a bank goes bankrupt, assets are sold to help cover outstanding debts. Assets include more than just the bank’s property. Your loan is an asset because it promises a future revenue stream. Of course, if your loan is in default, then it has already moved into the negative side of the balance sheet.
Read more…