What is GST?

The Prime Minister is currently in Japan where he was asked when GST (Goods and Service Tax) will be implemented and he responded by saying that GST will not be implemented by the current government. GST is one single tax that will replace all existing indirect taxes, and it is supposed to simplify the tax […]

Salary Reduction Plan 401(K)

November 20, 2006

This is a qualified plan provided by the employer to eligible employees of their organisations. The contributions to this plan are made by the employee on a salary deferral or salary reduction basis. It means that the employee’s pre-tax salary, matching his contribution to the Plan, is deducted and paid into his 401(K) account directly […]

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Simple IRA v/s Simple 401(K)

November 20, 2006

IRA and 401(K) are the most critical ways of having a steady income in your days of retirement. Most Americans opt for these plans to insure their future against any uncertainties. Hence, as an employer or employee it is very critical to choose the right plan. Though both the plans have certain common features, the […]

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Establishing a SEP IRA Plan

November 20, 2006

SEP (Simplified Employee Pension) IRA is established by employers, including self employed individuals like sole proprietors or partnership firms. If you are running a company with say 20 employees, then you can open a SEP IRA for each of your employees. All contributions to the SEP IRA plan are tax deductible. This means if you […]

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401(K) Fees and Expenses

November 20, 2006

The plan 401(K) is gaining popularity with more and more employees taking part and contributing a part of their salary towards securing their future after retirement. This plan also provides you with a chance to make use of these funds and contribute to their growth by directing your own investments. If you want to direct […]

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Vanguard Mutual Funds

November 16, 2006

A leader in the mutual funds industry and a popular choice among investors, the Vanguard Group was founded in the year 1975, and has well over $800 billion under management. The Vanguard family known for its educational outreach and indexing expertise pioneered indeed mutual funds in 1974. The Vanguard Mutual fund consists of over 100 […]

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What are NAVs and Loads?

November 16, 2006

Net asset value or “NAV,” of a fund is determined by dividing the net assets of the scheme by the number of outstanding units on the valuation date. NAV is calculated by adding up the present market value of securities, cash, accrued income owned by the fund then subtracting liabilities and dividing the result by […]

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What is a Mutual Fund?

November 16, 2006

A mutual fund is a company that pools money from many investors and invests the money in stocks, debentures/bonds, equities, short-term money market tools or other securities. The income produced through these investments plus the appreciation of capital earned by the scheme are shared by its entity holders depending on the units possessed by them. […]

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Different Types of Mutual Funds

November 16, 2006

Recently Mutual funds have become popular part of investment portfolio. The range of schemes and income alternatives offered by Mutual Funds can fit in the financial preferences of all classes of investors be it Retail, Corporate or Institutional. Efficiency in performance of mutual funds has inspired a great confidence amongst the investors. Mutual Funds offer […]

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Simple IRA an overview

November 16, 2006

IRA or the Individual Retirement Account provides double benefits to the customer. In the first instance it provides Compound Interest and the additional benefit is that there is no tax on this income. This mode of saving is really good if you have the money and can afford to keep it in the account for […]

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SEP IRA fundamentals

November 16, 2006

The Simplified Employee Pension or SEP is a retirement plan meant to encourage savings for a secure and relaxed life after retirement. The SEP though different in structure, serves the same purpose as the Individual Retirement Account (IRA). The SEP is designed for persons who are self-employed, sole proprietors, independent contractors, partnership or owner-employees of […]

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