Penny stocks, also known as Cent stocks, are a quick, easy, and inexpensive way to dip one’s toe into the share market when you don’t have a lot of money to invest. But it is not really for newbies since it requires some understanding and a decent level of knowledge and understanding of the market. Historically, investing in penny stocks is considered a risky business, especially during volatile market conditions. But if you want to head down that path, you can maybe start by investing a small portion in a few different ones to see how it impacts your portfolio. It is, however, better to figure out how open to risk you are before doing so. After ascertaining for yourself how open to risk and volatility of the market you are, and understanding your objectives and options, you can go ahead and invest in the penny stocks that you are comfortable with. Whether you manage the stocks yourself or have a professional handle them for you, remember to always evaluate your comfort and needs when making such investments, and always study the sector or industry, before making decisions to buy or sell. That being said, here are some of the companies that are buzzing as worthy penny stock investments right now, due to the industries and sectors they do business in (pharma, food and transport, mining).

Tax diversification is a financial term that refers to the allotment of investment money to two or more accounts. It is similar to an asset location which refers to transferring of investment money to numerous account types, and finding the best investment type that work best in those accounts. Taxable accounts and tax-deferred accounts are the two basic types of investment accounts. When the taxpayer invests that money in a taxable account, the money invested will not be tax- deductible nor it would raise tax deferrals, rather they would tax on shares and capital benefits when the investment is sold at a higher price. Tax analysis of different income brackets There are wide categories of income in terms of tax analysis as it connects to retirement, this needs to be understood for perceiving tax diversification. There are incomes such as tax-free, fully taxable, earned income, partially taxable, tax favored and other incomes like rental, pension, non-lifetime annuity etc. These are considered as different money brackets and the idea is to identify income from each bracket to reform the tax situation. Most of the time you may get the chance to manage your income to reduce tax. Basically, while you work, you get your salary and then you pay taxes, but a similar pattern is not observed during your retirement period.

When you are new to the stock market, all those numbers and percentages fluctuating might seem like some morse code that only a few gifted ones can decode. This is not the case however since even the average joe can make use of online tools and best online trading platforms available at his or her disposal to invest and make a decent profit in the stock market. Of course while venturing into unchartered territories, it is imperative to understand the basics. The stock market can be pretty unpredictable and volatile at times which is why investing smartly is the only way to go. There are simply too many variables to be taken into account otherwise, which is why these helpful tips will guide you through the maze of stocks and commodities trading. Buying and selling: A simple logic to follow, buy stock when they are in their lows and sell when they hit your expected mark, to make a profit. Prices keep fluctuating which is why a significant amount of your time will be spent on finding out the best time to “ call ” on a particular share and when to “ put ” to cash in. Best online trading platforms will offer various features enabling you to do the same.

Today, a huge population of taxpayers files their tax returns online for convenience and efficiency. The right tax software can be great and make the process easier. However, it is not always easy to make a choice between the plethora of tax software out there. There are several intimidating questions that you may be posed with such as which is the best software and what is the difference between the choices? Getting a clear answer to the questions can be a brain-drain. To simplify decision making, here are some strategies that will help you get the best tax software to fulfill your needs. Consider what you are looking for When looking out for tax software, make sure that you have a set package in mind. Keep the budget aside and consider your requirements in terms of productivity and performance. To begin with, you will require a software that can efficiently complete simple tasks such as form selection and completion. A software that electronically files returns and gets the refund quickly is a bonus. Put enough thought into calculating the requirement. Software version The software you choose will come in various versions. It can be confusing to decide on which software version will work for you because the basic version will not necessarily pack the same features as the deluxe version.

Almost every civilian would agree that preparing taxes is one of the most difficult tasks they have to perform. We often trivialize the importance of getting our papers in order, which can cost us a lot of precious time and effort towards the end. If you wish to sail smoothly through the coming tax season, here are some common mistakes that you should avoid during the process. Keep such tax tips and advice in mind and manage taxes without any hassles. Ignoring the health coverage While managing taxes, people often tend to ignore the importance of their health coverage. It is imperative according to the shared responsibility provision that you and your family have the minimum coverage to qualify for a health coverage exemption. If not, you will have to make individual shared responsibility payments for the exact period for which you didn’t have coverage or an exemption. So, you must ensure that you have a health coverage throughout the entire year. Not using tax preparation software Tax preparation is a skill which everyone doesn’t possess. Often people try to manage their own taxes in a bid to save money rather than hire a tax expert who would do justice to this task.

Calculating the price of a tax preparation service can be daunting as there is no set price for the same. The tax professionals use a variety of methods and ways to set a price for their services. This makes it difficult to calculate and compare the costs of different tax preparation services. The price of the tax preparation service increases as the financial situation and tax return becomes more complex. These tax preparation services often use different pricing methods for their services. Those who want to compare the prices of different tax preparation services can directly ask the companies the pricing method they use, or how the companies determine the prices. Companies generally tell the estimated price for tax preparation as well, however, it is generally difficult to get an estimate from any company unless the tax professional sees the tax issues of the client. Some methods that the tax preparation service providers use are mentioned below. A fixed fee for every single tax form or schedule A fee that is based on the previous year’s fee along with an additional fee charged for any changes in the situation of the client’s tax A minimum fee for tax return along with an additional fee based on the complication in the client’s tax situation A value-based tax preparation service fee An hourly fee for the time spent while preparing the tax return A fixed fee for every item in data entry A certified public accountant or a CPA advises that people should expect an average of around $273 for the current tax year.

Retirement plans may be going the way of the dinosaur but the younger generation of today should be aware of the fact that saving more for retirement is the wisest thing to do. Listed below are the simplest, no-nonsense and easy-to-understand retirement savings plans and accounts that one can choose: 403(b)/401(k) offered by employer: This is the best and easiest way for you to begin investing for retirement. Employee contributions go through payroll deduction, and employers match employee contributions. If you decide to quit your job, make sure that you roll over the account into the 401(k) plan of your new company or into your own IRA. A 403(b) is an option for employees of non-profits, teachers, etc. Solo 401(k): For sole proprietors, the best thing to do is to set up an individual 401(k) account and make contributions as both the employer and employee up to $54,000($60,000 for individuals above the age of 60 years). SEP (Simplified Employee Pension) IRA: This SEP IRA is usually used and employed by proprietors and owners of small-sized businesses or those who are self-employed such as freelancers. Employers can contribute either $54,000 or an amount which is up to 25% percent of their income, in 2017, whichever amount is lesser.

Dividends are when a company distributes a portion of its profit to its shareholders. There are two types of dividends “ cash and stock. The difference between the two types of paybacks are worth noting: Cash dividend A cash dividend is a form of cash, check, or electronic payment made by the company out of its profits to its shareholders. Thus, the company pays a part of their income to their investors for the economic value of shares without investing the whole money for its own operations. Yet it causes the EPS (earning per share) rate to drop down to the same rate as the dividend, resulting in financial value transfer. Another outcome is that the shareholders who are the receivers of cash dividends have to pay tax for the value of the shares, decreasing its finial value. However, cash dividends are beneficial as they provide regular income to their investors along with capital appreciation. Stock dividend Unlike cash dividend, stock dividends on the other hand are the payment made in the form extra shares rather than cash payouts. It is also known as scrip dividend. When a company is in shortage of liquid cash, it would choose another profitable alternative to distribute dividends to its shareholders and those are called the stock dividends.

The US market has always been a volatile target for investment. However, with a plethora of research, information, data, analysis, advice and tips available to investors today, one could invest in equities and profit considerably from them. Here are some great ideas from experts as to what types of stocks to buy and hold in 2020, for how long and how exactly you can try to take advantage through the US stock market The Warren Buffet advice: One of Warren Buffett’s prime investing philosophies espouse investing with the long-term in mind. He doesn’t mean forever, in this instance! Instead, he says that the since the market has always had an upward predisposition over a long period, the best technique to invest is to buy good-quality shares at reasonable prices with the intent of holding onto them for a long time. A time frame of at least 10 years is a fair one and one should forget about expensive and cheap markets since markets could go either way ascend in the right environment and plummet in others. Another advice it to not buy all stock in a single go “ for instance, if one wishes to invest in Apple and has $10,000, he should probably invest $2,000-3,000, to begin with, and in a few months if Apple still looks great, put in some more money, and so on.

In 2016, it was a mere number of 105 companies which made their debut on the stock exchange in the US, declining almost 40% from the year before that. So why exactly have IPOs vanished? While some say that the Brexit and presidential election dampened their enthusiasm, others reckon that the companies were able to access capital in the private market. Whatever the reasons may be, 2017 could turn out differently, with as many as 5 high-profile IPOs lined up. While it’s too soon to tell how they’ll turn out to be, let us take a look at some of the most successful IPOs that the US stock market has had in the past: AT&T Wireless, 2000, $10.62 billion:  The mobile division of AT&T snuck in its IPO on April 26th, 2000, just before the dot-com bubble began to burst in mid-March, with its huge gamble paying off handsomely. The company released 360 million shares and share value closed at $31.75/share, significantly upward from the pre-offer value of $29.50. At the end of the day, AT&T Wireless had raked in $10.62 billion in fresh capital and ended up holding the record for being the largest IPO in US stock market history for six long years.

Are you looking for a place to hideaway your money for a longer period of time than a regular savings account? You may have already investigated about certificate of deposit or a CD. A CD (certificate of deposit) is a deposit made with a bank for a period of time. They can be either obtained from money-making banks or can be procured from brokerage firms. They have a particular maturity date ranging from months to years, a definite rate of interest on the investment, and can be given out in any denomination. This article will break down everything you need to know about CDs, including pros and cons, the best CD rates and investment strategies, and alternative places to park your cash. How much interest will I receive on my investment? It is now easy for the consumers, as they can find a CD with the best rates and terms for their needs, from the numerous sites that list top CD rates and today’s highest CD rates. The CD rates are cited as an annual percentage yield (APY). The payment of the interest on the investment varies and the banks or brokerage firms can choose daily, monthly, quarterly, or annual compounding and this frequency can impact the expected return when compound interest is taken into account.