Sales of previously owned homes rose last year to 5.64 million, the most since December 2006, the National Association of Realtors (NAR) said Friday. In 2019, 5.34 million homes were sold. In December, sales rose 0.7% from November to a seasonally adjusted annual rate of 6.76 million, topping the 6.55 million estimate of economists polled by Moody’s Analytics. The strong end to 2020 followed a plunge in the spring when pandemic-triggered lockdowns slowed the pace of buying....

Now, let’s look ahead to mid-2020. Suppose you fell into some rough times and you were three months behind on payments for both loans. The first mortgage lender started the foreclosure process and after a few months was able to sell the property for $150,000. The first mortgage lender uses that $150,000 to pay off your original loan. You’ll recall it was for $200,000, but over the years you’ve made steady payments and now it has a balance of only $130,000....

The answer depends on the type of business you operate. Virtually all businesses need general liability insurance, but only some need professional liability coverage. The two coverages are distinct, and neither is a substitute for the other. What Is General Liability Insurance? General liability insurance covers many claims commonly filed against businesses, like slip-and-fall and property damage claims. It can be written alone or combined with other coverages in a package policy....

GNI also includes any product taxes not already counted, minus subsidies. It only counts income earned from residents who work abroad and does not count income earned by foreigners located in the country. Like GDP, it also does not include the shadow or black economy. While GNI can be used for a few purposes, it is mostly used to classify and group economies using purchasing power parity and the per capita method to determine different countries’ standard of living to each other....

What Is a Dependent Care FSA? A dependent care flexible spending account (DCFSA) is an employer-provided, tax-advantaged account for certain dependent care expenses. Its goal is to help cover the costs of providing professional care so that the caregiver can work, look for work, or attend school full-time. During a company’s open enrollment period or another qualifying event, an employee can elect to contribute a portion of their salary into the account pre-tax....

Creating a plan to pay off your debt is the first step toward debt freedom, but you can do more to ease the process. Adopting healthy financial habits will help you get out of debt and improve your overall finances. Not sure which habits to change? Try one of these strategies that will work for people with any amount of debt. Create and Use a Budget Establishing a budget sets a solid foundation for your finances....

JGI/Jamie Grill/Getty Images The National Retail Federation (NRF) predicts that sales this November and December will grow between 8.5% and 10.5% over last year to a record total of $843 billion to $859 billion, fueled by consumers’ rising incomes, pent-up savings, and increased flexibility. “Because consumers are motivated to engage in the holiday season this year, and they have the financial ability to do so, we think they’ll still participate in the holiday season even if they need to switch to another item or trade among different goods because their first choice may not be available,” said NRF President and CEO Matthew Shay in a media call....

A HELOC allows homeowners to take out a revolving line of credit, while a home equity loan pays out in one lump sum. Learn more about the differences to find out which type is right for you. What’s the Difference Between a HELOC and a Home Equity Loan? A home equity loan gives you a lump sum. There will be a maximum amount that you can borrow, and you will receive the entire amount in one transaction....

A bigger credit limit increases your purchasing power, but that’s not the only advantage of a higher credit limit. A higher credit limit can mean good things for your credit score—as long as you don’t go on a shopping spree and use up your newly available credit. It’s important to know that thirty percent of your credit score is based on your level of debt. A major part of that is your credit utilization or the amount of available credit you’re using....

It’s an especially good idea to obtain a home warranty if you’re a first-time homebuyer with no experience in maintaining a home. Who Pays for a Home Warranty? Whether the seller or buyer pays for the home protection plan and home warranty coverage will depend on your local customs. It’s normal for a seller to pay for the coverage in many locales, because it’s a seller benefit. The buyer won’t be calling the seller after closing if something breaks....

A 529 college savings plan can be a big help in preparing for those costs. These plans offer a tax-advantaged way to save for college, beginning as early as birth. The 2017 Tax Cuts and Jobs Act expanded the guidelines for 529 plans, allowing parents to withdraw up to $10,000 per year from these plans for private or religious elementary and secondary education expenses. But what happens if your student doesn’t use all of the money you’ve saved in a 529 plan on their behalf, or if they opt not to attend college at all?...

Tax evasion does not include honest mistakes or errors. Evasion is what the Internal Revenue Service calls “voluntary, conscious, and intentional” conduct. It’s the difference between avoidance and evasion. Tax Avoidance vs. Tax Evasion Tax avoidance is legal; it’s what taxpayers do to avoid paying more tax than necessary. You can avoid business and personal taxes by taking deductions and credits. As long as these deductions and credits are supported by documents and within IRS and state regulations, you are avoiding, not evading, taxes....

Many HNW individuals choose to work with a private bank—either a stand-alone company or the private banking division of a larger banking corporation—that focuses on the management of wealth. Account Features for HNW Customers Banks stand to earn more off of their relationships with HNW clients, so they’re eager to reward you and compete for your business. As you shop for private banks and other companies you feel could meet your needs, compare these features....

What You Need To Buy Bitcoin You’ll need some form of a digital wallet to buy Bitcoin. A digital wallet works like a checking account for cryptocurrency like Bitcoin. You use it to make deposits, withdrawals, and payments. Digital wallets have a public security key (sometimes used interchangeably with “address,” though they’re slightly different) which works like a checking account number—it’s the destination for your bitcoin transactions. And when you’re ready to make those transactions, your wallet has a private security key that works like a PIN—it’s unique to you and gives you access to your bitcoin....

What Is Classic Car Insurance? The term “classic car” can lead to a bit of confusion because automobile authorities apply different definitions. The Insurance Information Institute defines antique and classic cars as vehicles at least 25 years old. But when shopping for classic car insurance—sometimes called “collector car insurance”—an insurer’s definition is the only one that really matters. Many providers define a classic car as at least 20 to 25 years old, generally speaking....

Fortunately, certain credit cards can offer aid in these circumstances. Depending on your card issuer, you may be eligible for credit card travel accident insurance. This insurance will cover you and your immediate family members in case of severe injury or death while you travel. What Is Travel Accident Insurance? Credit card travel accident insurance is a benefit offered by a variety of card issuers. This insurance offers a payout in cases of severe injury or death for you and your family members while traveling....

Interest rates are affected by both the economy and your personal financial situation. Broader economic conditions determine the interest rate environment. Lenders then look at your personal financial health, measured by metrics such as your credit score, to determine the rate you receive. Learn more about how these two factors affect your home equity loan rate. Factors in the Broader Interest-Rate Environment The interest rate you are offered on a home equity loan is based in part on broader economic factors....

The buyer’s lender controls the amount of time it takes to process and close the loan unless the buyers are paying all cash. A buyer and seller can agree to close sooner, and they can put this in the purchase contract, but the lender must be able to perform its role during that time frame. If not, it doesn’t matter what date is chosen because the closing can’t occur if the lender isn’t ready....

That’s because the contributions to that traditional plan are typically made with pre-tax dollars, whereas Roth IRA contributions are made with after-tax dollars. Since you haven’t yet paid taxes on the contributions to a 401(k) or traditional IRA, this process is called a conversion and the amount you convert to a Roth IRA is taxable. Rollovers and Roth IRA conversions can be complicated, and it’s important to follow the rules about timing and limits to avoid penalties and extra taxes....

Sincerely, Mr. Always Worrying About Money Dear Always Worrying, This is such a timely question, considering there are real worries (and a likelihood) that the American economy could tip into a recession in the not-too-distant future. So let’s start with how much money you should have saved up. It’s generally advised that you keep three to six months of funds tucked away in case of an emergency—but that’s usually to replace your income in case you lose your job....