The economy added 223,000 jobs in December, the Bureau of Labor Statistics said Friday. That was the lowest number of new hires since December 2020, but well above the 200,000 that economists had forecast. What’s more, the unemployment rate fell from 3.7% to 3.5%, matching pre-pandemic levels and tying a 50-year low. Despite the abundance of jobs, however, employers got a little less keen to hike pay, with average hourly wages rising just 0....

Keeping up with your debt payments is one obstacle. Just because you can afford to fit these payments into your budget, you could still be putting added strain on your finances. Not only that, but money that’s being used to pay down debt can’t be used elsewhere. That means if you’re spending money each month on credit card or other unnecessary debt, you’re taking money away from other areas of your budget that can be used to build wealth and plan for the future....

The math and the end result are still the same, but these deductions are no longer listed “above the line” on Form 1040 because of changes made to the tax return forms. Form 1040 tax returns have been reduced to fewer lines. Numerous schedules have been introduced to include all the information that used to be entered on that first page. Alternate name: Adjustments to income How Do Above-the-Line Deductions Work?...

For example, Fidelity offers brokered CDs with terms that range from a few months up to five years, and interest rates that are higher for CDs for longer terms. How Brokered CDs Work Financial advisors, brokerage houses, financial planners, and financial consultants may offer brokered CDs. Simply put, any person who can shop around for securities can probably find you a brokered CD. You can also do it yourself at some online investing providers....

Leading indicators provide an idea of what economic conditions are coming in the near future. Lagging indicators show what has happened in the recent past. Typically, investors and economists pay attention to leading economic indicators, because they can help predict or forecast economic growth, corporate earnings, and stock prices. Some types of leading indicators include: Unemployment claimsConsumer confidenceBuilding permitsInventory changesStock prices Changes in these numbers can show what short-term, near-future changes are likely to occur in the broader economy....

Some payroll taxes are also known as “FICA taxes.” FICA stands for the “Federal Insurance Contributions Act” and includes Social Security and Medicare taxes. Other examples of payroll taxes include additional Medicare tax, self-employment tax, federal income tax withholding, and federal unemployment tax (FUTA). Payroll taxes are levied as a certain percentage of your earnings. Your employer typically pays half this percentage, and you pay the other half through paycheck withholdings....

Prorations are credits between the buyer and seller at closing. They ensure that each party is only paying these costs for the time that they owned the home. They will show up as debits or credits on each party’s closing statement. Prorations can be for costs such as: Homeowner’s association feesInsurance premiumsProperty taxes Before signing a purchase contract, you should read it to find out how prorations are handled. You want to make sure they are assigned fairly....

Alternate names: Target-date retirement funds, life-cycle funds Acronym: TDFs One example of a target-date fund is Vanguard’s Target Retirement 2065 Fund (VLXVX). It’s intended for people who expect to retire between 2063 and 2067. The fund starts with a high percentage of stocks, and will gradually sell its stocks and buy more bonds and TIPS funds as the 2065 target date approaches. How Do Target-Date Funds Work? Target-date funds are designed to provide investors with a diversified portfolio that automatically becomes more conservative as their target retirement date approaches....

Many people leave an insurance claim feeling shortchanged, but this feeling can be avoided by understanding what to expect in advance. One common misconception is when a person thinks they will be paid for something, but they don’t get the full payment they were expecting. In these cases, their policy’s limits of insurance may be to blame. By learning about what the special limits are in the policy and how they can affect you, you can make better decisions on whether you need an endorsement to be added, or if you need to find a better insurance policy for your needs....

Alternative names: Signature loan, good faith loan A few examples of types of unsecured loans include: Personal loansStudent loansUnsecured credit cards Personal loans are available from banks, credit unions, and online lenders, and can be used for any purpose you see fit. Private student loans and those through the Department of Education are typically unsecured. How Unsecured Loans Work When applying for an unsecured loan, lenders check your borrowing history to see if you’ve successfully paid off loans in the past....

Rewards credit cards are some of the most sought-after credit cards. According to a May 2017 Experian survey, 45% of the participants said they wanted credit cards with rewards. These credit cards pay an incentive—cash back, points, or miles—on the purchases you make. After you’ve accumulated enough rewards, you can redeem them for cash back, a credit card statement credit, flights, hotel stays, and more. Credit card issuers reserve rewards credit cards for the most creditworthy consumers....

A contested divorce typically unfolds in the following stages, but the stages and their timing may vary based on your state’s rules and your individual case: divorce petition, “pendente lite” motions and temporary orders, case management conference, discovery, and trial. File Divorce Documents One spouse must file a complaint or petition for divorce and have it legally served on the other spouse. The receiving spouse typically has 20-30 days to respond, depending on the state....

DDTLs have been used in the leveraged loan market, which has a reputation for lending to businesses and individuals with poor credit or excessive debt. Delayed draw term loans are usually valued at very large amounts. For example, they could range from $1 million to over $100 million. Delayed draw term loans may come in terms of, say, three or five years, with interest-only periods, such as six months to one year....

Cooperatives are important organizations for the world’s economy. Here’s what they are, how they work, and what contributions they can make to their local communities. Definition and Examples of a Financial Cooperative The defining characteristic of a financial cooperative (co-op) is its structure, which is typically member-owned and governed rather than investor-owned—a unique characteristic for a financial institution. The most common types of financial cooperatives are credit unions and cooperative banks....

GPMs aim to create more opportunities for first-time homebuyers and low-income homeowners. They are secured through the federal government as FHA loans. The benefits of these mortgages also come with drawbacks. The loan is more expensive overall than it would be with a standard mortgage. Payments may become unaffordable if you suffer a financial hardship, such as unemployment. Learn more about how graduated-payment mortgages work and whether they’re the right option for you....

In 2001, the Economic Growth and Tax Relief Reconciliation Act (EGTRRA) removed the distinction between Keoghs and other plans. Therefore, the Internal Revenue Code no longer refers to these plans as “Keoghs.” Instead, Keoghs are now known as “HR-10s” or “qualified retirement plans.” A Keogh is similar to a 401(k), but the annual contribution limits are higher. There is also much more to administering these plans than other types. Self-employed people have other options that can be used that are not as costly to maintain....

Definition and Examples of a Lock-Up Period A lock-up period is a time frame during which inside investors are prohibited from selling their shares in a company. Lock-up periods are often required in the case of an IPO to ensure company insiders don’t enter the public market immediately after the company goes public. A recent example of when a lock-up period was used was in the case of Airbnb’s IPO in December 2020, selling 50,000,000 shares of Class A stock at $68 per share....

Use this mortgage calculator to get a sense of what your monthly mortgage payment could end up being. You’d pay 5% of your total loan balance in interest if you have a 5% mortgage interest rate. but your principal balance should be much less after 10 years of making payments. How Does a Mortgage Interest Rate Work? Mortgage interest rates can vacillate, depending on larger economic factors and investment activity....

Alternate name: Nonperforming loan Consider this example: Let’s say you secured a $50,000 commercial loan to buy machinery for your business. Your monthly payment is $500, due on the 15th of each month. Two years in, your business is struggling and you’ve defaulted on three consecutive monthly payments. Since you have not made payment installments for more than 90 days, your loan is considered a problem loan. How Does a Problem Loan Work?...

So, say your Roth IRA balance is $100,000. If you’ve contributed exactly $90,000 to your account since opening it, this would be your Roth IRA basis. Knowing your Roth IRA basis comes in handy in a number of situations, especially, to figure out how much money you’ve put into the account and how much money your contributions have earned. How Does a Roth IRA Basis Work? One major benefit of a Roth IRA is that you can withdraw your basis (aka, your contributions) at any time without penalty or taxes — as long as your account is at least five years old or you meet certain other criteria....