Archive for the ‘Financial Plan’ Category
THE IMPOSITION OF TAXES ON INCOME
With regard to reader’s letter in about the imposition of taxes for retirees, need to be explained that the income tax levied on the income, that is, each additional capability economical received or obtained tax payers (WP), with the name and in any form, including a pension as well as obtain severance.
There are 2 ways put taxes on pensions, namely:
1. monthly pension paid Withheld if every month.
2. There is one time when the pension is paid at once.
Boundaries are not taxed up to $ 25 million.
-Tax rate of 5% for retirement above $ 25 million to $ 50 million.
-Tax rate of 10% for retirement above $ 50 million to $ 100 million.
-Tax rate of 15% for retirement above USD 100 million to $ 200 million.
-Tax rate of 25% for retirement above $ 200 million.
Thus, from a pension amounting to $ 100 million being paid out at once, which taxed is USD 100 million reduced first by $ 25 million, meaning that taxable is $ 75 million.
With a layer of tariffs, then the tax imposed is $ 6.250.000,-.
Taxes that are payable per WP, used by the State for a variety of purposes, such as the provision of country shopping facilities, infra structure, public security, health, education and others.
There are no magic rules that we saved from financial problems. But these tips can help avoid them in most cases.
If you have a family, everyone must participate, no one can do all the work alone. Make sure your spouse and children, understand that the family is having financial problems and they all must meet a series of steps to help them recover.
1.Make a realistic budget and stick to it. This includes a periodic check and adjustment of their numbers and spending habits.
2.Do not buy impulsively. When you see something that has not planned to buy, avoid doing so, think twice.
3.Avoid liquidation. Buy something $ 20 cheaper may mean an unnecessary expense.
4.Tailor your insurance to their abilities.
5.Buy something they can afford at the moment. Do not pay expenses in the future, credit cards can betray your budget unconsciously.
6.Avoid large rent and property payments. Consider refinancing your home if payments are difficult to fulfill.
7.Do not enter or guarantee the credit of another. The commitments forced him as if you were the borrower in case of infringement of the holder. You can not put your hands in the fire for someone Else’s economy.
8.Avoid socializing with people of questionable consumer habits or their relatives. If you owe, you will be responsible for the failure of others as well.
9.Do not make high risk investments. Be conservative and opt for certificates of deposit, money market securities, etc..
Find alternatives to invest their money. Instead of inviting a friend to eat at an expensive restaurant, take a picnic, take advantage of public parks, libraries and put all their ingenuity to work for your family finances.
Annuity is a series of receipts or a fixed payment made periodically at a specified time. An example is the interest received from bonds or cash dividends from a preferred stock.
There are two types of annuities:
- Ordinary annuity (ordinary) is the annuity payments or receipts occur atend of of the period, as well as
- Annuity due (due) is the annuity payments or receipts made at the beginning of the period.
1) Keep your weather eye open.
One of the key factors in weathering any storm is knowing that it’s coming and what direction it’s moving. Keep an eye on the leading indicators for your business and be aware of changing economic conditions.
Prepare cash flow projections for the next year. This will help you to see what changes need to be made and when. If such-and-such happened and your predicted cash flow dropped x%, what could you do?
2) Review your credit policies and the credit histories of customers and/or clients.
Managing your customers’ credit is an important part of cash flow management. Weed out unprofitable customers, those that cost more to maintain than they add to the bottom line. Flag those who have a history of slow payment.
There are several ways on how you can reduce credit card debt and one of which is through money saving tips and tricks which include the following:
1. Make a summary of the things you need. In short, try to make a budget on a weekly or monthly basis. This will prevent you from spending money that you do not need and thus will discipline you into budgeting your paychecks every time you receive it.
2. Save for an emergency fund equivalent to at least 6 months of your salary. A small portion from your monthly salary must be kept for future or emergency use.