Payroll taxes include federal, state, and local income taxes, federal and state unemployment taxes, and Medicare and Social Security taxes. They are automatically taken out of your paycheck every time you are paid, based on a flat, fixed tax rate for state and local income taxes and Medicare and Social Security taxes. For federal income taxes, the rate depends on your tax filing status and the number of withholding allowances you designate when you fill out federal tax withholding forms.
Peer-to-peer (P2P) lending is the lending of money that occurs directly between parties without the involvement of a traditional financial institution. As such, it is very old and rather common. Its modern form was made possible by the Internet, and it has evolved to become a business activity of its own, with a profit motive.
Personal finance is economics on the family and individual levels. Get a basic introduction to it in this tutorial. Learn about goal-setting, financial action plans, various investments, and how small, everyday choices impact your financial life.
Predatory lending occurs when a business takes advantage of you by charging higher-than-normal interest rates, unreasonable fees, and certain other charges on loans that you take out. It is a form of high-cost borrowing. Predatory lending can occur on many different kinds of loans and financial products, including mortgage, car, payday, tax refund, car title, and home equity loans; and credit cards and debit cards.
Real estate investment trust (REIT)
A real estate investment trust, or REIT (pronounced “reet”), is a company that owns, manages, and/or operates real estate in order to earn profits for shareholders.
The Roth IRA is a type of individual retirement account. The principal difference between the Roth and a traditional IRA is that while contributions to a traditional IRA are tax-deductible (except in certain cases) and withdrawals are taxed, contributions to a Roth IRA are taxed, but qualified withdrawals are not taxed. For some investors, the inability to deduct their contributions is a tiny price to pay for tax-free withdrawals that could be quite substantial after years of having grown in an account. Of course, as in the traditional IRA, the earnings of a Roth are tax-free while they accumulate.
A second mortgage is a financing technique that has become an increasingly common option. To obtain a second mortgage, you must have a good credit score, be able to make both the first and second mortgage payments, and have a steady income.
Simple interest is the amount of interest earned on the original amount of money invested. Simple interest is paid out as it is earned and does not become part of an account’s interest-bearing balance.
The savings incentive match plan for employees (SIMPLE IRA) is sponsored by employers and is a replacement for salary reduction simplified employee pensions (SARSEPS). The employer may set up IRAs for individual employees.
Simplified Employee Pension Plans (SEP IRAs)
A simplified employee pension is an IRA to which employers can contribute. Contributions must be based on a written allocation formula and must not discriminate.
Social Security benefits are based on average lifetime earnings and the amount of time you’ve worked. All who pay Social Security taxes can get Social Security benefits when they retire. By paying Social Security taxes, you are also eligible to receive disability and death benefits, in addition to Medicare benefits. However, you must earn enough Social Security credits to qualify.
Socially responsible investing
Very broadly, socially responsible investing (SRI) weaves values-based, nonfinancial criteria into Missouri pawn shop license the investment process. But that definition is pretty broad. The SRI label can apply to various, even complex, investing strategies.