Financial Planning

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Business planning is important because it establishes the direction of the organization. When people plan before launching a business, they avoid many pitfalls that others do not anticipate. With many businesses failing within their first few years, a sound plan is like a compass to navigate through the obstacles.

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  • What is a 401(k)?

    Q: What is a 401(k)?

    A: The government offers taxpayers the 401(k) as a retirement savings plan sponsored by their employer. Using this program, workers are able to save and invest a portion of their paycheck before the employer withholds taxes. According to The Wall Street Journal, the employer matches a certain percentage of the savings invested by the employee.
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  • Do traditional and Roth IRA rules differ?

    Q: Do traditional and Roth IRA rules differ?

    A: Although there are many similarities between a traditional and a Roth IRA, there are a number of differences. The primary difference is that Roth IRA contributions are not tax deductible, while traditional IRA contributions usually are at least partially tax deductible. Additionally, the Roth IRA has strict income limitations that restrict who is eligible to contribute.
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  • What is a personal representative deed?

    Q: What is a personal representative deed?

    A: A personal representative's deed is a deed signed by an individual who is looking after the sale of real estate on behalf of another party. The personal representative may be the executor of the estate of a deceased person or the administrator of the affairs of someone who is incapacitated.
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  • What is the result when you subtract liabilities from assets?

    Q: What is the result when you subtract liabilities from assets?

    A: Subtracting a company's liabilities from its assets results in the business's net worth, also called owner's equity, according to Entrepreneur magazine. Assets, liabilities and net worth are listed on a company's balance sheet.
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  • What do you do when a family needs financial help?

    Q: What do you do when a family needs financial help?

    A: When a family needs financial help, options to provide assistance include giving a gift of cash, making a personal loan or co-signing on a bank loan, hiring a member of the family, or prepaying some of the family's bills. Non-monetary help one can provide to a family in need of financial assistance includes helping to develop a feasible budget and connecting the family to others who can provide help.
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  • How do you make a withdrawal from a 401(k)?

    Q: How do you make a withdrawal from a 401(k)?

    A: To make a withdrawal from a 401(k) retirement plan, borrowers must contact the human resource office of the employer or the investment company hosting the plan, complete a withdrawal form and provide reasons for the withdrawal if younger than 59 1/2. Fees may apply when withdrawing funds early.
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  • Why is planning important?

    Q: Why is planning important?

    A: Business planning is important because it establishes the direction of the organization. When people plan before launching a business, they avoid many pitfalls that others do not anticipate. With many businesses failing within their first few years, a sound plan is like a compass to navigate through the obstacles.
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  • What is the penalty for early withdrawal from your 401K?

    Q: What is the penalty for early withdrawal from your 401K?

    A: Individuals who withdraw money from a 401(k) account prior to age 59 1/2 must pay a 10 percent penalty in most cases. In addition to the penalty, individuals must pay federal income tax on the amount withdrawn.
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  • What are current liabilities?

    Q: What are current liabilities?

    A: Current liabilities, also known as short-term liabilities, are business debts that a company reasonably expects to pay with cash within one year or within the company's fiscal year, whichever is longer according to The Law Dictionary, an online version of Black's Law Dictionary. The total amount of current liabilities is tracked in a company's accounting system and reported on its balance sheet.
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  • What are personal consumption expenditures?

    Q: What are personal consumption expenditures?

    A: Personal consumption expenditures refer to the measure of price changes in consumer goods and services. Personal consumer expenditures consist of the imputed and actual expenditures of families; this data is the basis for forecasting inflation. The calculation also consists of information pertaining to services, durables and non-durables. In essence, the personal consumption expenditure model is an all-inclusive measure of goods and services consumed by individuals and families.
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  • How do you live frugally?

    Q: How do you live frugally?

    A: Living frugally requires dedication, examination and changes in lifestyle. People wanting to live a more frugal lifestyle should take a close look at where they can reduce their expenditures and adopt new practices, such as utilizing coupons or taking the extra time to shop for the best deals on their next vacation with discount sites.
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  • What is the difference between gross and net income?

    Q: What is the difference between gross and net income?

    A: The difference between gross and net income is that gross income is the total amount of income made and net income is the total amount of income made after taxes and other expenses have been subtracted. The total gross income or gross amount can refer to total profit or total sales.
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  • How does a Roth IRA work?

    Q: How does a Roth IRA work?

    A: A Roth IRA allows investors to contribute money toward retirement with the potential of generating tax-free earnings. Since a Roth IRA is simply a type of account designed to provide favorable tax treatment, investors opening a Roth IRA must then select an investment vehicle they feel balances their risk tolerance with their need for reward.
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  • What are some tips for kids on how to save money?

    Q: What are some tips for kids on how to save money?

    A: According to The Mint, teaching kids about saving money includes setting savings goals, thinking about saving first rather than last and being smart when shopping. A good way to teach kids about savings goals is to help them buy big-ticket items. However, parents should set a goal that the child has to reach with his own money before the parents pay the rest.
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  • How do you prepare for retirement?

    Q: How do you prepare for retirement?

    A: According to the United States Department of Labor, creating and sticking to a plan to save money is the most important step in preparing for retirement. Successful retirement requires planning, commitment and stable finances.
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  • How much money does the average person save?

    Q: How much money does the average person save?

    A: According to Zacks Investment Research, the average U.S. savings account contains $5,923. This includes individual and joint savings accounts but not those managed by large groups or organizations. Therefore, it can be surmised that the average person has just short of $6,000 saved that they can access easily.
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  • How can I make $1,000 fast?

    Q: How can I make $1,000 fast?

    A: According to an article by US News and World Report, one way to make money quickly is to recycle items that you have around your house. Tires, printing cartridges, aluminum cans and old metal piping are all recyclable; take them to a recycling center to earn some fast cash. Old computer electronics can also be recycled for money. Some brands are worth more than others because they contain precious metals.
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  • What is the most significant barrier to effective planning?

    Q: What is the most significant barrier to effective planning?

    A: The most significant barrier to effective planning is change. Effective planning strategies typically include changes, both real and perceived, to people, systems, processes and structure. This can be highly disruptive to an organization.
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  • How do you calculate gross monthly income?

    Q: How do you calculate gross monthly income?

    A: Gross monthly income is simply the total amount one is paid per month without any deductions for taxes and benefits. To calculate, simply multiply the hours worked per month by the hourly wage. If paid a salary, the monthly amount is the gross monthly income.
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  • How do you use a system flowchart?

    Q: How do you use a system flowchart?

    A: Using a system flowchart involves following a number of symbols representing actions connected by arrows to produce a desired end result, according to the BBC. The flowchart displays how data, ideas and information flow in a system, based upon decisions that control events. Symbols simplify diagrams as they stand for the same function in any flowchart.
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  • How do you find 401(k) money from a previous employer?

    Q: How do you find 401(k) money from a previous employer?

    A: Since all monies contributed to a 401(k) plan are protected by federal laws, whether at a current or previous employer, the money is still safeguarded. The best method for locating money in a 401(k) with a previous employer is to contact the employer directly, notes 401khelpcenter.com.
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