Finance Xpress

Debt consolidation is the process of rolling your existing debts into one new debt. When the new debt offers a lower interest rate than your existing debts, you can reduce the amount of interest paid and shorten the expected payoff period. Because credit card debt usually carries double-digit interest rates, consolidation can provide significant interest savings […]

The post Consolidate and Eliminate Credit Card Debt with a Personal Loan appeared first on Cash Cow Couple.

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Starting a business is never easy. According to U.S. Bureau of Labor Statistics data, about a fifth of all startups typically don’t survive past year one of operation, and nearly half never make it to their fifth anniversary.

But startups fail for different reasons, a “bad location” among the most common. Choosing the right state for a business is therefore crucial to its success. A state that provides the ideal conditions for business creation — access to cash, human capital and affordable office space, for instance — can help new ventures not only take off but also thrive.

In this study, WalletHub’s data team compared the 50 states across 18 key indicators of startup success to determine the most fertile grounds in which to launch and grow an enterprise. Read on for our findings, business insight from a panel of experts and a full description of our methodology.

1. Main Findings
2. Red States vs. Blue States
3. Ask the Experts
4. Methodology

Embed on your website<iframe src="//d2e70e9yced57e.cloudfront.net/wallethub/embed/36934/geochart.html" width="556" height="347" frameBorder="0" scrolling="no"></iframe> <div style="width:556px;font-size:12px;color:#888;">Source: <a href="http://ift.tt/2sozbZy;  

National and state economic policies can greatly affect business creation and the direction they take after launching. For insight into the ways in which different measures impact business, we asked a panel of experts to address the following key questions:

1. Do you believe that the economic policies being pursued by the Trump administration will promote new-business development?
2. To what extent do state policies, such as corporate tax rates, influence decisions about whether and where to start a new business?
3. Are tax breaks and other incentives to encourage new businesses on net a good or bad investment for states?
4. What measures can state authorities undertake in order to encourage entrepreneurs to start new businesses in their state?

In order to determine the best and worst states to start a business, WalletHub’s analysts compared the 50 states across three key dimensions: 1) Business Environment, 2) Access to Resources and 3) Business Costs.

We evaluated those dimensions using 18 relevant metrics, which are listed below with their corresponding weights. Each metric was graded on a 100-point scale, with a score of 100 representing the most favorable conditions for new-business creation.

Finally, we determined each state’s weighted average across all metrics to calculate its total score, which we then used to rank-order our sample.

Sources: Data used to create this ranking were collected from the U.S. Census Bureau, Bureau of Labor Statistics, Ewing Marion Kauffman Foundation, Center for Digital Government, National Venture Capital Association, Yelp, Indeed.com, U.S. News & World Report, Tax Foundation, The New York Times, U.S. Bureau of Economic Analysis, Council for Community and Economic Research, LoopNet and Federal Deposit Insurance Corporation.

Early retirement has become a popular financial topic in recent years, and it’s easy to see why. Who wouldn’t want to pack it in early and start enjoying the good life while you’re still young and healthy?

But as attractive as the idea seems, there are a few obstacles that don’t get a whole lot of coverage. A big one is how you’re going to survive until you are eligible to begin tapping your tax-advantaged retirement plans. The solution is to fund early retirement with taxable investments.

You can always bite the bullet and begin tapping your retirement plans early. But if you do this, you’ll have to pay not only ordinary income taxes on withdrawals, but also the 10% early withdrawal penalty tax. That can be an expensive way to retire, and it will force you to draw down your retirement assets faster.

Related: 3 Money Rules to Ensure an Early Retirement

Why a Roth IRA Conversion Ladder May Not Be the Best Strategy

This particular strategy is all over the web – why not just go with that?

Here at Dough Roller, we have covered using a Roth IRA conversion ladder to fund early retirement, as well. It offers an opportunity to access your retirement funds before you turn 59 ½, without paying taxes or penalties on the withdrawals. In that way, it definitely fits the bill as a source of income early on.

But the Roth IRA conversion ladder isn’t without its limitations:

• You have to have a substantial amount of retirement assets available for the conversions.
• You must begin making the conversions at least five years before you plan to retire.
• You will pay substantial income tax on the converted balances, especially since the conversions will happen while you’re still working.
• A Roth IRA conversion isn’t really a tax-free withdrawal; you’re just paying the tax now in order to avoid it when you start withdrawing the funds later
• You will begin drawing down your retirement assets early in your retirement, which opens the possibility of depleting them in your later years.

I’m not trying to trash the Roth IRA conversion ladder; it is a viable strategy. But it’s not for everyone, and it has to be done right. Otherwise, any or all of the limitations above could become costly issues.

Learn More: Roth IRA Contribution Limits

In addition, as noted in the Roth IRA conversion ladder post, it will be better from a tax standpoint if you do the conversions once you retire. That way, you can minimize the tax bite. But during the five years you’re doing the conversions, you should live on withdrawals from ordinary, taxable accounts.

Let’s take a look at why.

Save on Taxes During the Early Retirement Years

It’s true that saving money in taxable investments denies you the ability to get a tax deduction for the amount saved. You also lose the perk of accumulating investment earnings on a tax-deferred basis.

However, one thing that taxable investments can do is to provide you with a ready source of cash that will not create an immediate tax liability.

That makes taxable investments the perfect source of income during the early retirement years. While it’s true that the income you earn on those investments will continue to be taxable, withdrawals from the accounts will not be. That means you can withdraw as much as you want, and not have to wait until you reach 59 ½.

Preserve Retirement Assets for the Traditional Retirement Years

One of the biggest reasons for tapping taxable investments for early retirement is to avoid touching your dedicated retirement accounts.

You can think of early retirement as requiring a two-tiered funding system. The first tier provides income for your early retirement years, while the second covers the traditional retirement years.

So, if you to plan to retire at age 50, plan on living on taxable investments until you turn 65. Once you do hit that mark, you can shift over to your dedicated retirement savings.

Resource: Maxing Out Retirement Accounts — How Rich Could You Be?

In addition to the fact that this strategy will enable you to avoid touching your retirement savings, it will also provide valuable extra years for those savings to increase. After all, once you retire and you no longer have earned income, you will no longer be saving for retirement. The investment income you will earn between ages 50 and 65 could be substantial.

Example: Let’s say you have $500,000 in retirement savings at age 50, and you earn an average rate of return of 7%. The account will grow to $1,379,516 by age 65 – simply as a result of your leaving the money alone and letting it grow.

Have a Strategy to Avoid Outliving Your Money

Outliving your savings is one of the biggest concerns for both people planning their retirement and those living in it.

The simple fact is that people are living longer than ever. According to the Social Security Administration, a 65-year-old man can expect to live to be 84.3, and a 65-year-old woman can expect to live to be 86.6.

That means that the average person, upon reaching 65, can expect to live roughly another 20 years. And we know that many people are living much longer than that. Turning 90-something is no longer exceptional.

So, if outliving your money is a concern when preparing for a typical retirement — one that will cover 20 or 30 years — how much more of a concern is it if you retire at 55, 50, or even 45?

If you retire that early, you will need to provide for yourself for anywhere from 30 to 50 years. That kind of planning requires a different kind of strategy, like drawing down on taxable investments in the early years of retirement.

Resource: How I Reached Financial Independence By Age 40

Why a Big Chunk of Retirement Savings Should be in Taxable Investments

When planning for retirement, most people properly favor accumulating large amounts of money in tax-sheltered retirement plans. While that should be the basis of retirement savings, taxable investments should also be part of the mix. At a minimum, your taxable investments will serve as a large emergency fund when you retire.

But taxable investments can open up retirement options, particularly for those who want to retire early. They can provide that valuable income bridge between the time that you retire and the time you reach age 65.

This makes a strong case for saving at least some of your retirement money in taxable investments.

To figure out how much you’ll need, first decide on the age at which you hope to retire. Then, subtract that age from 65. So, if you plan to retire at 55, you’ll need a 10-year income bridge. If you expect to need $40,000 per year, multiply that by 10, and you see that you need $400,000 in taxable investments.

This should actually be easier than normal retirement planning, since it will mostly be a matter of having enough money to provide income for a fixed term. Unlike traditional retirement savings, you won’t have to concern yourself with your taxable investments being able to provide you with an income for life. They may be needed for only 10 or 15 years. Then, you can begin drawing on your actual retirement savings.

Related: Preparing for Retirement Late In the Game

Have you thought about how you are going to fund the early years of your retirement?

The post How a Taxable Investment Account Can Make You a Better Investor appeared first on The Dough Roller.

Retiring from your career doesn’t necessarily mean retiring from all of the responsibilities of life. However, there are actually some expenses you can look forward to leaving behind once you exit the workforce to focus on enjoying your golden years.

The end of such expenses can easily make it feel like you’re getting a bonus, even though your overall income may be less than it was while you were working. These vanishing costs can come from some pretty surprising places, too!

Let’s take a look at six big expenses you can say goodbye to once you enter retirement.

Commuting Costs

The irony of having a job is that many people spend quite a bit of money just to get to work each day. The cost of the gas needed to cover a commute can total hundreds of dollars per month. That doesn’t even take into consideration the wear and tear on a vehicle and the expenses of covering routine maintenance. A person with a daily commute of just 20 miles each way can easily expect to pay $50,000 in driving costs every ten years.

Even people who use public transportation each day will have to part with a big chunk of money every month.

Retirees may find that ending a commute can feel like getting an instant bonus. You’ll likely be a few thousand dollars richer by the end of just your first full year.

Vehicle Costs

A vehicle is a lifeline to many of the things a family needs, and wants, to do. These days, most families require two cars just to be able to handle shuffling kids to obligations, running errands, and juggling the aforementioned work commutes. Add in that fact that over 60 percent of American households are now dual-income, and one car simply isn’t enough for many families.

The beauty of retirement is that most couples can easily live in a one-car household. That means one less auto loan payment each month, if you finance your vehicles. Dropping a vehicle will instantly slash the amount you pay in personal property taxes and auto insurance. Plus, you’ll decrease the chances of an unexpected repair bill. Wins all around!

Related: How to Save Your Budget from One-Off Expenses

Clothing Costs

There is no dress code for retirement. This is good news for workers who spend years adhering to strict dress codes that require specific types of shirts, suits, and shoes. A person can save a lot of money when they’re not forced to update their wardrobe every season.

In addition, weekly bills for dry cleaning can add up to a substantial amount of money every year. You can look forward to pocketing a nice chunk of change when you’re not having your collars starched on a regular basis.

The reality (and perk) of post-career living is that retirees are free to dress in  whatever they want. For many of us, that may mean never visiting the dry cleaner’s again.

Payroll Taxes

Paying payroll taxes just becomes a part of life once you’ve worked for a few years. In fact, not everyone takes the time to examine their paychecks, and few realize that they’re even paying payroll taxes on their earned income.

Retirement means no more “earned income.” No more earned income means that payroll taxes vanish once a person enters full retirement. That’s a tax rate of 7.65 percent (for employees) that you’ll no longer be sending to Uncle Sam.

Life Insurance Premiums

Life insurance isn’t a necessary expense for many retirees. The primary reason for needing life insurance is to replace one’s income in the event of an unexpected death. If you die, you want to be sure that your family will be able to manage and not be thrust into undue hardship.

Most people don’t have dependents in their household by the time they retire. This means it’s not really necessary to pour money into premiums. Since you’re living off of your retirement savings and investments at this point, your spouse will not be suddenly affected by a change in income, were you to pass away.

Of course, it’s not unreasonable to keep paying for a small policy, which can cover things like funeral costs. But finishing out the term on a larger policy can save you a bunch in monthly or annual premiums, even if you maintain a smaller policy.

Learn More: Do You Need Term or Whole Life Insurance?

Restaurant Bills

Retirement can be a great opportunity to finally devote time to hobbies, like cooking and baking. Many working people end up going out for lunch and picking up dinner on the way home simply because they are too busy to make food at home. Work lunches and networking happy hours can add up, but are a necessary evil for many careers.

Eating out at restaurants several times a week can quickly eat away at your budget if you’re not careful. Spending more time at home means new retirees won’t have to pay for pricey lunches on the go anymore. Even something as simple as making a cup of coffee at home every morning, instead of buying your java on the way to work makes a big difference.

Related: Cut Expenses Now So You Can Afford Retirement

Many of us look forward to retirement for a number of reasons. The idea of enjoying your golden years without job obligations is worth the decades of work preceding it. Spending time with family and fulfilling those fun dreams you never had the time for before? Can’t beat it. Some of us even seek to get out of the rat race sooner, eyeing an early retirement plan.

Aside from the basic pleasures of retiring, it’s nice to see how even everyday expenses will go down. Sure, you won’t be bringing in a paycheck any longer, and your income may even drop. But when you’re saving on payroll taxes and a busy city commute, you might not care.

The post 6 Big Expenses You Will No Longer Have In Retirement appeared first on The Dough Roller.

Credit cards are a dual-edged sword. When used responsibly, they offer great rewards, warranty extensions, and fraud protection. These benefits are offered to lure unsuspecting customers into carrying a debt balance and paying double-digit interest rates – often north of 15%. Luckily, credit card issuers love to compete for your business. Many offer a 0% introductory […]

The post How to Use a Balance Transfer to Eliminate Credit Card Debt appeared first on Cash Cow Couple.

The Muon g-2 massive electromagnet begins its 3,200-mile journey from the woods of Long Island to the plains near Chicago. (Photo courtesy of Brookhaven National Laboratory)

Fermilab — Fermi National Accelerator Laboratory — outside Chicago, needed a 50-foot, 15-ton, superconducting electromagnet for their quantum experiment with muon particles. Fortunately, Brookhaven National Laboratory had such a magnet to give. The only problem: how to move it without knocking the magnet out of alignment. The muon magnet couldn’t flex or bend by more than an eighth of an inch over its 50-foot diameter at any point of the 1,000 miles between the two labs.

The magnet’s journey ended up being more than three times longer than originally intended. The transporters built a rigid exoskeleton to hold everything in place, set it on three canisters on a barge and floated it to Chicago. Its passage also shut down an entire highway in the dead of night.

Join Tell Me Something I Don’t Know in the City of Big Shoulders for a show on transitions — from here to there, from low to high and from fish to human. Our panelists are:

Che “Rhymefest” Smith, Grammy-winning hip-hop artist and political organizer, who went through more than 50 jobs to get where he is now.

Ginger Evans, commissioner of the Chicago Department of Aviation, who is partially to thank/blame for the TSA.

Mary Catherine Curran, Chicago-based comedian, who knows how to deal with problems in transit.

Our real-time fact-checker is Jesse Dukes, producer of WBEZ’s Curious City stories.

The post Getting There: TMSIDK Episode 21 appeared first on Freakonomics.

Your credit score is determined by the following factors: Payment History (35%) Credit Utilization (30%) Credit History (15%) New Credit (10%) Credit Mix (10%) In this article, I will explain how an installment loan can improve your credit mix, credit utilization, and your overall credit score. Installment Loans and Your Credit Score There are two main types of credit – revolving […]

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