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“Tax-efficiency” describes the way certain investments produce tax liability as compared to others. If a particular mutual fund is tax-efficient, it produces a lower tax liability for investors than other funds. Because of tax efficiency, investors holding funds in a taxable brokerage account can reduce taxes by using passively managed funds. That is why index funds are said to be tax-efficient funds. Short-Term vs. Long-Term Capital Gains When you sell an investment that you’ve held in a taxable account for one year or less and make a profit, you’re subject to short-term capital gains tax....

Assumption of Risks Insurers are in the business of assuming risks. When an insurer issues an insurance contract, it agrees to assume the risks described in the policy in exchange for a premium. Insurers make money by taking advantage of two statistical concepts: risk pooling and the law of large numbers. Insurers pool risks by accepting a large number of policyholders that have a low risk of incurring losses. They know that some of those policyholders will ultimately sustain a loss but expect they’ll be in the minority....

An enormous advantage of having access to a forex trading account is that you can invest your money in foreign currencies that pay interest. The interest rate differential works out when you find a country that has a low-interest rate to sell. A setup like this is called carry trading. Carry trading is when you pick a currency pair that has a currency with a high-interest rate and a currency with a low-interest rate, and you hold it for the currency that pays more interest....

Why People Use Mini Lots Mini lots may not be exciting in terms of price change on a trade, but they have many practical purposes. Because of this, even experienced traders like to use mini lots to finely tune their exposure to a market. With the increase of algorithmic trading, trade size is rarely done in full blocks because the risk exposure from 500,000 to 600,000 is rather large when you can easily move from 500,000 to 510,000....

What Is a Corporate or Business Tax? A corporate or business tax is charged on the profits of a company. The figure used as a basis for taxes varies, depending on the business type: Small business owners pay tax on Schedule C as part of their personal tax returns. Partners in partnerships and LLC owners are taxed on their share of business net income. Corporations are taxed on net earnings....

Why Has the Seller Countered? Counteroffers typically involve things like changing the price the buyer will pay for the property or increasing the size of the earnest money deposit. The seller might also refuse to pay for certain reports or fees in a counteroffer. Changing the closing or possession date is another common reason for a counteroffer, as is excluding or adding personal property from the purchase. The seller might want to modify contingency time frames or have deposits released early....

Whenever you have the option to use subsidized loans, it’s probably an excellent choice (assuming it makes sense to borrow at all). But subsidized debt is only available in limited circumstances, and you may need to demonstrate financial need to qualify for these loans. How Subsidized Loans Work With subsidized loans, somebody pays your interest charges for you. When you borrow money, lenders typically charge interest on your loan balance, and you are required to pay those charges....

Learn about how your retirement income can benefit from annuities. And find out how to put them to work in your asset allocation approach. How Do You Build a Portfolio With Annuities? Here’s how a traditional asset allocation approach works: You divide your retirement contributions among stocks and bonds in percentages that suit your tolerance for risk, your investing goals, and your retirement timeline. Based on that, you’ll set a sustainable withdrawal rate....

Before you sit down for an interview, think through your response to interview questions about organization. What the Interviewer Wants to Know At the most basic level, interviewers want to know if you are—or are not—organized as an employee. They’ll also be interested to know if your organizational abilities are a good match for what the role demands. Interviewers may ask: How do you stay organized? Tell me about a time you worked on a major project with many deadlines involved....

If you or a loved one falls into one of these two groups, then your estate, or your loved one’s estate, will potentially be subject to a Medicaid lien or “death tax” after you die. Here’s what you need to know about this tax. Medicaid Estate Recovery If a deceased Medicaid recipient falls into one of the two groups covered by estate recovery, the state must recover enough assets from the estate to cover Medicaid’s costs related to covering long-term care and related drug and hospital benefits....

Without taking the time to talk about money, though, couples can find themselves stressed about finances down the road. Long-term success requires a commitment to budgeting as a couple. Here’s what you can do to start things off on the right foot. Start with the Basics Before you sit down to plan out your budget with your partner, spend time together talking about your financial habits, goals, and desires. Understanding each other and how you both approach money can help provide a basis for moving forward....

Your employment history, educational background, skills, and qualifications need to be presented in a way that will help you get selected for a job interview. Rather than a simple list of the jobs you have held, it’s important to include information specific to the positions for which you’re applying. Once you’ve created your first resume or refreshed your old one, you can simply tweak it to match it up with a job when you’re applying for an open position....

When you’re ready to build a worksheet to calculate your capital gains or losses, try to do the following: Make one worksheet for each stock, bond, or other investment you haveKeep all the purchases on the left sideOrder the purchases in chronological order from first to lastKeep all the sales transactions on the right sideUse formulas to calculate gains or losses using the data in the other cells if you use spreadsheet software...

A simple cash flow calculation can illustrate the potential of rental real estate as an investment. Let’s use a fourplex as an example and assume that all four units are destined for full-time rental. You’ve done your research and you made a good buy on the property. Here’s what you can expect in cash flow from a rental. Start With the Basics The purchase price of the property was $325,000....

Available credit is the difference between your credit limit and your outstanding balance. It’s the amount you’re able to spend on your credit card without facing penalties for exceeding your credit limit or having your card declined. Here are three ways you can easily check the available credit on your credit card before making a purchase that could put you over your credit limit. 1. Your Mobile/Online Account If have online access to your credit card account, you can log on to check your available credit....

Congratulations: You’re a well-rounded person. And that’s a good thing, in general. (Most likely, you’re fun to talk to at parties, and have weekends full of plans and activities.) But when it comes to picking a career path, you may find yourself overwhelmed. Unlike friends who have singular passions or have stuck with the same notion of what job they want to have since elementary school, figuring out your career path may be more challenging....

If you’re in the preliminary stages of scouting out properties, these tips can help you create and implement a savings budget for buying a second home. Assessing Your Savings Needs When Buying a Second Home A second home can potentially be more expensive than a first home if it’s being used as an investment property or a vacation getaway. Not only can the purchase price itself be higher if you’re looking at a second home in an in-demand market, but you’ll also likely pay more for things like property taxes and homeowner’s insurance....

In most states, unemployed workers can apply online, over the phone, or, in some cases, by mailing a form. Many states provide information for applicants in numerous languages, including Spanish. Here’s information on filing for unemployment, the information you need to apply, how to file a claim, when you’ll receive benefits, and what to do if you have questions. What Is Unemployment Insurance? Unemployment insurance is compensation provided to eligible workers who lose their jobs through no fault of their own, providing monetary payments for a specific period of time or until the worker finds a new job....

What Are College Grants? A college grant is a form of financial aid that you don’t have to repay. The government and other organizations offer grants to in-need college students to help them pay for higher education. To qualify, you must meet certain eligibility requirements. Grants vs. Scholarships Comparing grants and scholarships can be confusing because both provide students with financial aid that doesn’t have to be repaid. However, scholarships are typically merit-based, whereas grants are need-based....

Typically, the human resources manager will contact you to set up a phone appointment. During this scheduled phone interview, you will be asked a series of questions about your job experience, training or education, and your understanding of what the position might entail. Get advice for following up after a phone interview, when to follow up, and what to include in your email or note, and review sample phone interview thank-you letters....