Alternate name: Underemployment, hidden unemployment, partial unemployment There are a couple of ways in which disguised unemployment can occur: How Does Disguised Unemployment Work? As noted above, with disguised unemployment, there can be too many workers needed to carry out current production activities. This can occur due to an increase in technology coupled with a mismatch in demand for certain types of workers and imperfect knowledge of their skill sets....

The form consists of five sections. You’re only required to complete sections one and five but completing additional sections can help your employer more accurately determine the appropriate amount to withhold from your paychecks. Example of Form W-4 Steps 1 and 5 are the mandatory sections of Form W-4 that must be completed. The other three steps finetune your withholding for your personal situation: Step 1 (REQUIRED): This is where you’ll enter your name, address, Social Security number, and tax filing status....

This measure can be compared in dollar values such as dollars earned by gender or in percentages such as participation rates in the workforce. When the values for the same financial indicator for different genders are on par, this indicates parity. In contrast, disparity occurs when the values aren’t equal. Some indicators used to assess gender parity in finance focus on workforce participation, income, pay raises, executive positions, debt levels, retirement savings, and net worth....

ljubaphoto / Getty Images Retirement at age 59 1/2DisabilityTermination from your jobDeath It’s considered to be a regular withdrawal if one of these factors applies to you. Alternate name: Early distribution How In-Service Withdrawal Works Making an in-service withdrawal from your 401(k) is almost never a good idea. You’ll be subject to taxes and penalties in just about every case. Taking an early distribution will also reduce the value of your 401(k), often permanently....

For example, Navient is perhaps best known for being one of the student loan servicers contracted by the U.S. Department of Education for federal student loan servicing. However, Navient announced in 2021 that it would end its contract with the Department of Education and stop servicing federal student loans. How Navient Works To improve educational access, Congress created the Student Loan Marketing Association (SLMA) in 1972 as a private, for-profit corporation classified as a government-sponsored enterprise....

Understanding how net sales works is especially important when calculating your business’s revenue and determining your overall net earnings, also known as the bottom line. Knowing how to calculate net sales is one of the first steps to creating an accurate income statement for your business. Definition and Examples of Net Sales Net sales may sometimes be simply referred to as “sales” on financial statements, and it may also be referred to as “net revenue....

Definition and Examples of Non-Owner Occupied Non-owner occupied mortgage loans focus on buildings with up to four residential units whose owners don’t live on the premises. These loans may require slightly higher credit scores, significantly larger down payments, and higher interest rates than a primary residence mortgage. Non-owner occupied loans are contrasted with loans for your primary residence. Many programs exist to help people afford to purchase a primary residence, but often, these loan products aren’t intended for investment properties....

What Is Prepaid Insurance? Prepaid insurance is coverage you pay for in full before you receive its benefits. For example, if you take out a mortgage to buy a new home, the lender may require you to pay a one-year homeowners premium at closing. When the policy goes into effect, you’ll then get the benefits of the coverage over a 12-month period. Insurance companies often offer incentives to customers who prepay their premiums, but this type of plan requires making a large lump-sum payment....

Alternate name: Automated bill pay Credit card balances are an example of a bill that requires monthly payments. For example, you can set up recurring billing for a credit card payment of $100 that would be deducted from your checking account on a specified date. Your credit card issuer would automatically process the payment without any additional information or authorization from you. The number of payments you’d need to pay off your balance depends on the balance, interest rate, and whether you have additional charges or fees on your account....

Alternate name: Old-Age, Survivors, and Disability Insurance ProgramAcronym: OASDI For example, workers who have paid into Social Security for at least 10 years are generally eligible to receive Social Security reduced retirement benefits when they turn 62 years old and full benefits if they elect to wait until the reach full retirement age (which depends on when they were born). How Social Security Works Social Security is financed through a 12....

How Does the Roth IRA 60-Day Rule Work? The 60-day rule for a Roth IRA refers to the amount of time you have after withdrawing your investment earnings to deposit (or redeposit) money into a new or existing Roth IRA account. If you get it done within 60 days, you won’t have to pay any income taxes or penalties on the distribution. With a Roth IRA, you can withdraw your contributions tax and penalty-free anytime....

Old Annual Purchase Limits Purchase limits have been in place since 1941 when only Series E bonds were available. The most restrictive limit for those bonds—$3,750 annually—was in place from 1941 through 1947. The most generous limit was $30,000 for electronic Series EE and Series I bonds from 2003 through 2007. The U.S. Treasury Department used to set the Series I savings bond purchase limits based on the way you bought your bonds....

Manufactured homes are built off-site in a factory setting, allowing for a fast, efficient, and low-cost assembly-line approach. Their construction isn’t subject to local weather conditions, so they can be manufactured quickly and in higher volume than traditional homes. Finally, high-volume production allows manufacturers to purchase supplies and building materials in bulk, resulting in a lower cost to the consumer. Learn more about the cost of manufactured homes. What Influences the Cost of Manufactured Homes?...

Read on to find out if the 30% credit utilization rule of thumb holds water and what you need to do to truly optimize your credit score. What Is the Credit Utilization Rule of Thumb? Credit utilization refers to how much of your available credit is being used. It’s the second-most important factor for the most popular credit scoring models (right behind payment history) and accounts for 30% of your score....

This article takes you through the process of determining whether your home business space is eligible for the deduction and how to calculate it, using either a simplified method provided by the IRS or actual expenses. What Is the Home Office Deduction? The home office deduction is a way for self-employed business owners, including sole proprietors, limited liability company (LLC) owners, or partners in partnerships, to deduct from their business tax bill certain expenses for the use of a part of their home for business purposes....

Alternate name: Retail mortgage market Most homebuyers need a loan to buy a home (although some can pay in cash). When you’re searching for a loan to buy a home, you might compare offers from many different players, such as online lenders, your local bank or credit union, or mortgage brokers who represent wholesale lenders. You’ll compare lenders to see which one offers the best interest rate, the most advantageous repayment terms, and the lowest fees....

For example, suppose one investment manager has a portfolio return of 10%, while the second investment manager has a return of 14%. It would appear that the second investment manager has the better return. However, the Sharpe ratio for the first manager could be 1.8, and for the second manager it could be 0.7. The second manager is taking on more risk to generate the added return, which means there’s also a higher risk of losses....

Examples of the Support Test For example, if you have an elderly relative you take care of and they pay for 70% of their living costs, they would not qualify as your dependent. Here’s another example: Say your teenager earns $2,500 from a summer job. As long as they don’t use that money to pay for more than 50% of their own support needs, the IRS considers them your dependent if you provide the remaining portion of their support....

Definition and Examples of a Taper Tantrum A taper tantrum is when investors have a “tantrum” or a reaction to news of the central bank slowing or stopping bond purchases. Investors may react by selling bonds, which topples the price of bonds and raises the yield. The sharp climb in bond yields after the central bank announcement is called a taper tantrum. The term was coined in May 2013. The then U....

Alternate name: Excess liability insurance. For example, you might have comprehensive and collision coverage on your vehicles. These policies have limits on the amount they will pay out for any given circumstance. You could purchase an umbrella policy that covers any amounts that your primary coverages do not. How Umbrella Insurance Works Umbrella insurance coverage begins where your other coverages end. It protects you over the limits on your house, condo, boat, car, or other policies....