These plans are defined contribution plans and offer the same types of benefits that 401(k) plans offer employees, such as tax and savings advantages. Let’s learn more about TSPs and their maximum contribution limits for 2022. Maximum TSP Contributions for 2022 Thrift savings plans were started as a result of the Federal Employees’ Retirement System Act of 1986 to provide service members and federal workers with retirement savings benefits. How much you can contribute to a thrift savings plan varies depending on a number of factors....

Current Revenue The U.S. government’s total revenue is estimated to be $4.71 trillion for FY 2023. Per the White House’s projections, income taxes are slated to contribute $2.35 trillion. Another $1.59 trillion will come from payroll taxes. This includes $1.10 trillion for Social Security, $342 billion for Medicare, and $55 billion for unemployment insurance. Corporate taxes will add another $284 billion. The White House also predicts the Federal Reserve, whose revenue comes from a variety of sources, will contribute $76 billion in 2023....

Rather than owning individual shares in a group of different companies, mutual funds allow investors to take advantage of diversified stock and other securities holdings and professional money management through the purchase of a single mutual fund share. Mutual fund companies essentially pool money from a large group of investors and invest that pooled money into several securities. Each mutual fund share represents an investor’s partial ownership in the fund and the income it produces....

The B2C Challenge The challenge of the business-to-consumer model is that businesses need to maintain a steady sales steam to stay viable. When the economy gets tough, consumers may make changes in their spending, and that can affect a B2C business. While a cutback on consumer spending can also affect the B2B model (because businesses often require goods and services to stay in business), the impact is greater when it comes to a B2C business....

Learn what happens when a callable bond is called by the issuer and what it means for investors. What Is a Callable Bond? When you buy a bond, you lend money in exchange for a set rate of return. You are essentially lending money to the seller. If a bond is callable, it means the issuer sells it to you and can “call” the bond back before the maturity date....

You don’t need to travel to see the debt clock—you can visit the U.S. Treasury website, Debt to the Penny, to download the current and archived amount of U.S. national debt. Why the Debt Clock Is Important The U.S. national debt is the sum of all outstanding debt owed by the federal government. It’s an accumulation of each year’s budget deficits. About three-fourths of the national debt is public debt, which is held by individuals, businesses, and foreign governments that bought Treasury bills, notes, and bonds....

A lot of people have told you that you should turn your back on the house as a bad experience and just go. Maybe they’re telling you that foreclosure isn’t that big a deal and you can start over. Still, you and your spouse have good jobs and you’re not behind with your mortgage payments. You wouldn’t mind renting for a while, but is it really that easy to get rid of such a burden?...

Review these tips for welcoming back an employee from leave, with a general example letter, and letters for a return from sick and maternity leave. Develop a Plan Don’t just assume everything will fall into place once the employee returns. Create a plan to address the following: Scheduling. Will the employee return to full-time work or on a part-time basis? Will they need flexible hours? Shorter work days? Telecommuting options?...

The federal funds rate is adjusted by the Federal Reserve (the Fed) as part of their monetary policy authority, giving them the ability to attempt to control runaway economic episodes. When interest rates rise, it’s typically a reflection of a booming economy. The Fed raises interest rates to keep the economy from growing too rapidly or triggering a rise in the consumer price index. Interest rates can also be reduced in attempts to keep the economy from shrinking or continuing to fall....

One example of a federal grant-in-aid program was a program established by the Social Security Act of 1935. The program gave money to states to train public health personnel and maintain public health services within their local counties. The Partnership in Health Act of 1966 also established a federal grant-in-aid program that offered block grants to fund state and county health activities, such as dental health services and tuberculosis control....

Longer-term stock warrants are typically good for up to 15 years. Stock options are shorter-term. They can expire in just weeks or in two or three years. How Stock Warrants Work Warrants are good for a fixed period of time. They’re worthless once they expire. But the date is sometimes automatically extended under terms set by the company if the warrant isn’t exercised by that deadline. The investor might have an additional two years....

If you’re wondering whether an internship is right for you, consider these essential benefits first. Internships Only Last a Short While An intern works at a company for a fixed period of time, usually three to six months. Some students will have a part-time internship working at the office for just a few days or hours per week. Others will have full-time internships, meaning they work the same hours as the company’s full-time employees....

If your company offers these perks, you can opt in and pay for them using payroll deductions. Although these benefits are often employee-funded, meaning that your employer doesn’t necessarily pay part of the cost, they can be cheaper than alternatives purchased on the open market. That’s because employers can often negotiate lower prices than individual consumers. These supplemental benefit options are popular with employees and employers alike. Aon, a professional services firm that administers voluntary benefits programs, reported a 41% increase in the number of clients offering these benefits between 2021 and 2022....

Not all credit cards are created equal; they have different purposes. There are rewards cards, travel cards, balance transfer cards, and more. Each appeals to customers who have varying needs and credit profiles, and some types of cards may be easier to qualify for than others. Below are six tips that could help improve the likelihood of credit card approval. Review Your Credit Report Your credit score is based on your credit report, which outlines all your debt, such as credit cards, home mortgages, and student loans....

Should you buy insurance from a captive agent? Before doing so, it’s important to understand how they work, potential advantages or disadvantages, and the differences between a captive agent and other types of insurance salespeople. What Is a Captive Agent? A captive agent agrees to sell policies from only one insurance company, and potentially its partners. However, it’s unlikely that you’ll hear the term “captive agent” when looking over an agent’s website....

For instance, if you’re looking at a used car, it’s very likely that CARFAX already has the data associated with the vehicle identification number because it had previous owners. The information about that car was gathered from multiple sources and combined into a formatted report. You buy the report from CARFAX’s website, and can view the entire reported history of that vehicle. How Does a CARFAX Report Work? CARFAX gathers information from many different sources....

Definition and Examples of Co-Branded Credit Card Co-branded credit cards are credit cards where a brand, an issuer, and a network partner to offer a credit card for consumers and businesses. Co-branded cards tend to be popular because they offer rewards you can redeem with the brand. For example, retail stores, airlines, and gas retailers often offer co-branded credit cards with banks and issuers like Chase, Barclays, and American Express. With a co-branded credit card, the merchant or brand’s logo appears on the credit card while the card issuer and network do the behind-the-scenes work of processing transactions and calculating rewards....

If you are thinking about subscribing to a credit monitoring service, learn how it works, how much it costs, and what alternatives you have for protecting your credit and identity. Definition and Examples of a Credit Monitoring Service A credit monitoring service alerts you when changes occur to your credit report. When changes occur to credit accounts, the service alerts the subscriber via text, email, or phone. This gives the subscriber the opportunity to take appropriate action....

Of course, investors can profit by selling shares as they increase in value and take capital gains, but many firms further incentivize shareholders to keep their money in the company by paying them directly. These payments are called “dividends.” For example, Company XYZ earned a substantial profit over the past year. As a result, the board of directors has approved a cash dividend of $2 per share to be paid to investors each quarter for the next year....

Definition and Example of a Grace Period The time period after a deadline or due date of a loan where you won’t face any consequences if you make a late payment is called a grace period. You can think of a grace period like a timeout in sports or a summer vacation in grade school: It’s a chance for you to prepare for your obligations to come, but you have to do that before the time is out....