https://finance.zacks.com/advantages-disadvantages-savings-checking-accounts-3843.html

https://www.wellsfargo.com/financial-education/basic-finances/manage-money/options/bank-account-types/

​https://www.bankrate.com/banking/savings/average-savings-interest-rates/

Checking account holders have access to online and mobile banking, ATMs and the use of debit cards and checks to make purchases or withdraw funds from the account. Many employees find checking accounts useful for direct deposit of their paychecks. With direct deposit, an employer automatically transfers a payroll amount into the employees banking account, saving time and avoiding trips to the bank to cash paychecks. Most checking accounts in the United Stated are also insured by the Federal Deposit Insurance Corporation, or FDIC, for up to $250,000, which ensures an account holder that his money is safely stored at the bank.

Checking Account Disadvantages

Many checking accounts come with an array of fees that an account holder may incur. Fees include monthly or maintenance fees, ATM withdrawal fees from third-party machines, in-bank transactions fees and over-the-phone transaction fees for using customer service. Some banks also require minimum balances and charge a fee if the account balance is lower than the minimum.

Other disadvantages of checking accounts include ATM withdrawal limitations, potential overdraft fees and debit card usage fees.

Savings Account Advantages Savings accounts are ideal for individuals looking to save while earning a modest amount of interest. Advantages of savings accounts include the ability to withdraw at any time, unlike other long-term investments such as certificates of deposits. Savings accounts also require low investment amounts to start with, depending on the type of account. Much like checking accounts, many saving accounts are also insured by the FDIC. Should the bank fail, the depositor's money is secure. Other advantages include the ability to have automatic deductions for bill-pay and minimal monthly fees.

Savings Account Disadvantages

Quick and easy access to a savings fund is tempting for some account holders, which can make long-term saving difficult. Savings accounts generally have the lowest return when compared to other types of investments. Most savings accounts also have a minimum balance requirement. If the account balance falls below the minimum amount, the account holder incurs charges, which can negate any interest earned. Another possible disadvantage is that the FDIC only insures accounts up to $250,000, which may be concerning to individuals with savings of more than the maximum amount.​​

How does CDs Work?

Here is an article from money.howstuffworks.com

Do you ever overhear co-workers drop comments like looking good this year," then you excitedly chime in to say something like, "Yeah excited about the new Amy Winehouse album?" When you realize that they're talkin certificates of deposit (CDs), you awkwardly back out of the conversation. If this familiar. You're not alone. Most of us don't realize the wide range of investment options between savings accounts and stocks. that such a large CDs are just such an investment. Although savings accounts are a solid first step to our your finances, they offer paltry advantages beyond that. The interest on them tends to be relatively measly. And, especially when inflation rates get high, your money might be better in an account with higher interest rates.On the other side of the spectrum, you could invest in stocks. However, your money will encounter more risk in the stock market, and some shy awas from such aggressive investments. When you've garnered a comfortable stash of funds that you feel you can do without for a while. CDs are a great next step. They offer a higher interest rate than savings accounts, so you can watch your money grow faster. The drawback? You can look but you can't touch -- at least not without a penalty.Unlike savings accounts, a Cb has a maturity date, after which you can withdraw your funds in full. If you choose to withdraw before that date, you'll have to pay an carly-withdrawal fee. Say, for instance, you're doing comfortably right now and have a healthy savings stowe away. If you want to see it grow a bit to make sure you can afford retirement or a child's college tuition (and you don't like the idea of trusting a volatile stock market), CDs are a good alternative.Next, we'll talk specifics about how CDs work. Although CDs grow faster than savings accounts they're just as safe. That's because they're protected with the same insurance as other bank accounts are under the Federal Deposit Insurance Corporation (FDIC). As long as you're with an EDIC.insured bank, at least a portion of your funds is protected in case the bank goes under. Typically, ily all of your funds up to $100,000 would be refunded. So, if you exceed this amount, you wealth around. Putting your excess funds in a different bank will make So, if you exceed this amount you should consider spreading your 5 our excess funds in a different haleill make sure they real insured Also like savings accounts, CDs eam compound interest. This me funds get interest added to them the next interest is taken on the total funds plus interest previously camed This means that although the constant, the amount of interest added increases each time.

401k and 403b Pension 401k and 403b are tax-deferred retirement plan that allows you to set aside pre-tax dollars.A 403b is a tax-deferred retirement plan that is very similar to a 401k. That is, it allows you to set aside pre-tax dollars out of your paycheck to save for retirement -- up to $16,500 per year, and for some people, the limit may be higher. The 403b is administered by a financial management company chosen by your employer (or one of several they'll allow you to choose from) and you select mutual funds and annuities to invest your money.

Difference between 401k and 403b Eligibility

The basic difference is that a 403b is used by nonprofit companies, religious groups, school districts, and governmental organizations. The law allows these organizations to be exempt from certain administrative processes that apply to 401k plans. In other words, administrative costs for a 403b are lower. This allows organizations with very small budgets to help their employees save for retirement Cost The difference in cost between a 401k and a 403b can be either small or substantial. Your cost will be determined by what you invest in the level of service the management company provides, and who the company is. For example, a variable annuity in either plan will take a bite out of your earnings, as its associated fees are typically high. That said, 401k administrative costs can be much higher than those of a 403b, regardless of the investment inside. To find out how much you're paying for your plan's administration, you'll probably have to look beyond your statement, as the information usually isn't visible there. In either plan, find out how much the investment itself - mutual fund or annuity - is charging as well. If necessary, get on the phone with whoever handles retirement at your workplace, or with the management company itself. You don't want unnecessary fees eating up a large portion of your retirement fund. Other than cost, differences are minor between the two plan types and will probably have little bearing on your investments.

Elective Deferral Limits

If you’re 50 years old and participate in both a 401(k) and a 403(b) plan. Both plans permit the maximum contributions for 2020, $19,500; but the 403(b) doesn’t allow age-50 catch-ups. You can still contribute a total of $26,000 in pre-tax and designated Roth contributions to both plans. Your contributions can’t exceed either:your individual limit plus the amount of age-50 catch-up contributions, orthe maximum contribution in 2020 for that plan type (for example, you couldn’t contribute the entire $26,000 to the 403(b) plan because that 403(b) plan only allows a maximum contribution of $19,500 in 2020)

https://www.bankrate.com/retirement/what-is-the-4-percent-rule/

Within the vast topic of retirement, the concept of “the 4% rule” hits right at the core of most people’s concerns: how much money is enough money to have in your savings when you finally reach retirement?

There’s no shortage of advice about how much you should save for retirement, but there’s a lot less clarity around how much money you’ll ultimately need when the time comes.

This is what the 4% rule addresses.What is the 4% rule?The 4% rule is a rule of thumb that suggests retirees can safely withdraw the amount equal to 4 percent of their savings during the year they retire and then adjust for inflation each subsequent year for 30 years.The 4% rule is a simple rule of thumb as opposed to a hard and fast rule for retirement income. Many factors influence the safe withdrawal rate such as risk tolerance, tax rates, the tax status of your portfolio (i.e., the ratio of tax-deferred assets to taxable assets to tax-free assets) and inflation, among others.The upside to this go-to rule is its simplicity. Having a guideline from retirement spending that’s this clean and simple makes planning much easier. The downsides are that it’s a number that might become outdated by the time you reach retirement, and that any flat number doesn’t adjust for market conditions, which surely will change year to year.Let’s dig into the 4% rule a bit more — and unpack whether or not it might be a helpful guiding rule for your own retirement planning or whether it’s ill-equipped for the dynamic set of factors that rule over long-term savings and future spending.

Modified Endowment Contract (MEC) is a tax qualification of a life insurance policy whose funding exceeds federal tax law limits.

Tax-free growth is may life carriers tried premium and unit owners could then with policy did not lapseh policy to functie insurance should be owth is one of the chief advantages of cash-value life insurance, and therefore stried to take advantage of this feature in the late 1970s by offering singleuniversal life products that featured substantial cash value accumulation Policy then withdraw both the interest and principal as a tax-free loan, as long as the at lanse before the owner's death. Of course, this strategy effectively allowed the function as a large-scale tax shelter. However, Congress did not agree that life should be used in this manner and therefore passed the Technical and Miscellaneous

Taxation of MECS

Any loans or withdrawals from a MEC are taxed on a last-in-first-out basis (LIFO. Therefore, any taxable gain that comes out of the contract is reported before the nontaxable return of principal. Furthermore, policy owners under the age of 59.5 must penalty for early withdrawal. It should also be noted that the IRS has its own set of guida premiums that must be mst in order for cash value policies to retain their FIFO status standards apply to both flexible and single premiums and supersede those of the seven. For any given flexible-premium rolicy, the IRS has a single premium limit that the com annual premium payments may not exceed. For example, the IRS may assign a five-year premium limit of $24.000 to a policy. If the annual MEC limit is $5.000, then the policy owner will exceed the $24.000 limit 544.000 limit in fifth year of the policy. Therefore the owner can only contribute $4.000 that year to avoid status. He or she must then wait until the IRS guideline annual premiums catch up with the premium payments in a later year. The consequences of exceeding the IRS guideline premi are very severe; any policy that receives premium above this threshold will lose all of the traditional tax benefits accorded to life insurance policies. Life insurance companies will typically disallow any premium payment that exceeds the IRS guidelines for this reason.

Proper Use of MECS

Despite the reduced tax benefit and other limitations of MECs, they are often marketed as a stable retirement planning tool. They are usually touted as an alternative to annuities, which immediately become taxable upon the death of the owner. But MECs still resemble life insurance policies in that they pass their assets tax-free to heirs. These vehicles can be appropriate for investors looking for a way to leave a tax-free inheritance to their family members. However, the owner should not purchase a MEC with the intention of accessing the cash before the allowed time period, although emergency withdrawals are generally permissible. Conclusion Of course, most policy owners have no idea that these guidelines exist. Policy owners who are concerned about whether their policy may become a MEC should consult their insurance agent or carrier to see what their policy is for handling excess premiums that would turn the policy into a MEC. Insurance carriers keep track of this matter and will notify their policy owners if either the seven-pay test or the IRS guideline premiums are exceeded.

http:/homeguides.stgate.comadvantages disadvantages investing-real estate-1680.html

Investing in real estate is not for the faint of heart. There are many variables estate investing significantly profitable. On the other hand, the same variables mi far more than what they bargained for. Before investing in real estate, understand the and disadvantages of such a venture

Significant Profits There can be a major advantage to investing in real estate if property at a price low enough to result in a significant profit example, some investors buy real estate they intend to flip. Flinn result in huge profits for investors. The property may be in foreclosure or needs little or no repair. You may purchase property for much less than its value, repair or update it, and resell it at a much higher selling price. Exercise extreme caution in this kind of venture.

Ongoing Additional Income Another advantage to real estate investing is the rent derived from rental property. It ca result in ongoing, additional income, Over time, additional income may enable you to take dream vacation, buy a long-awaited speed boat or grow your retirement fund.Access to CreditContingent on a variety of factors, additional income generated from real estate investment may give you access to more credit. Generally, lending institutions lend more money to people who make more money. The additional income made from real estate investments may open broader credit lending doors.

Leave a Legacy Real estate may be willed to family members after your death. You could leave a legacy for your children by investing in real estate.Finding FinancingInvesting in real estate has its disadvantages. Lending institutions are very careful about whom they lend to, often requiring a 20 percent or more down payment. Sometimes finding a loan for investment property presents a formidable task. Although Fannie Mae and Freddie Mac typically offer generous loans to eligible investors, not all investors meet eligibility requirements. You may find that securing financing for an investment property is all but impossible.Debt Investors often do not have the cash to pay outright for a property. Instead, they typically take out loans. That results in more debt for the investor. If you purchase a property for flipping and it does not sell, you are stuck with the debt and with paying on the debt until the property does sell. If you invest in rental property, it would also be a great detriment if the renter stoppeu paying his rent and you had to go through the courts to remove the renter. You would not only be stuck paying the payments on the debt, but more debt would be created by hiring an attorney to remove the renter.

Additional Expenses Rental property requires upkeep. Owners of rental property are responsible for timely to Repairs could result in major expenses. Replacing the HVAC, roof or any other major endeay can be quite costly, especially for large apartment complexes. If repairs are not performed in "reasonableonable" time frame delermined by the local authority as the owner, you may be slappca with sien ith significant fines. Taxes and insurance can also be quite expensive for rental property.

Legal Issues Legal issues may come into play when investors become owners of property. Once you own property operty, you become liable for damages to others who come onto the property. For instance, il chine falls of the property onto someone, or someone falls on the property and becomes the property Owner is liable for the medical care and may also face a personal injury lawsuit and attorney fees.

What is Term Life?

Term life insurance provides insurance protection for a specified period face amount as a benefit only if the insured dies during that period. Generall expensive and least complicated life insurance policy. It is "pure insurance bol breach valuewhich explains the low cost of term relative to permane Term life insurance is fairly easy to understand. Assume, for example,

Larry purchases a five-year, $100,000-level term naming his sister, Loretta, the beneficiary. If Larry dies at any time during th period Loretta will receive the $100,000 death benefit. If Larry lives bevor period, nothing is payable; the policy's term has expired. There is no residual value. When the coverage period expires, so does the protection 1 term policy on his life no the policy's five-yes. beyond the five-year residual value or cash W use the home of the lease,

Term insurance is similar to renting a home. When renting, an individual can use everything that goes with it but only for as long as the lease allows. At the end of the contract the renter may have the option to renew, but usually for a higher price. The rente equity in the home and the lease has no value when it ends. The renter does not build

Term of Coverage The period for which term policies are issued may be defined by a number of term, 10-year term. 15-year term, 20-year term) or it can be issued in relation to the (term to age 45, term to age 50 term to age 65). The selection of the proper period der how long the individual needs the protection umber of years (one-year into the insured's age per period depends on

Type of Death Benefit Term insurance is also available with various death benefits or face amount options. A tem policy can provide a level, decreasing or increasing, face amount.

Level Death Benefit.Level term insurance provides level death benefit protection for a specified period, after which the policy expires. A $100.000, 10-year level term policy provides exactly that: $100,000 of coverage for 10 years. A $250,000 term-to-age-65 policy provides $250,000 of coverage until the insured reaches age 65. If the insured under the $100.000 policy dies at any time within those 10 years, or if the insured under the $250,000 policy dies before age 65, their beneficiaries will receive the specified face amounts. If the insured live beyond the 10year period, or past age 65, respectively, the policies expire and no benefits are payable.

Decreasing Death Benefit.Also available are term insurance policies that provide a death benefit that decreases gradually over the term of protection. They are used to cover needs that decline over time. A 20-year. $100.000 decreasing term policy, for example, will pay a death benefit of $100.000 at the beginning of the term; that amount gradually declines over the 20-year term and reaches zero at the term's end. Decreasing term insurance is best used when the need for protection declines from year to year. For example, a family breadwinner who has a $100.000, 30-year mortgage could purchase decreasing term insurance that would retire the mortgage balance should the insured die during the 30-year mortgage paying per decreasing amount of life insurance coverage matches the similarly decreasing a debt so that if the insured dies at any point during this period, the amount of 11 atches the similarly decreasing amount of the period, the amount of insurance

Whole life in issue to the date of the face amount of insurance provides permanent protection for the whole of life "from the date of the insured's death, provided premiums are paid The death benefit payment of the policy, which remains constant throughout the policy's life. policy issue premiums, and they, too, remain level and fixed for the policy's lite. Features lite life insurance policies provide the following "living benefits": Life insurance combines pure insurance protection with an accumulation element, the I value, which builds over the life of the policy. With whole life, the cash value is the rate of interest that is fixed and guaranteed within the contract. 

Cash Values The cash value of a whole life insurance policy is credited with a rate. Maturity at Age 100 A whole life insurance policy protects an actuarially level premium. Reflecting the cost premium for a number of years before the life policy matures, the cash value has grown to completely replace the pure tection; at policy maturity, the cash value equals the face amount. Whole life is actuarially designed to mature at age 100. Acting on the cost of mortality, an assumed rate of interest and insurer expenses, the premium for a whole life insurance policy is actuarially calculated (in part) on the basis of the number of years between the insured's age at issue and age 100. Not all whole life insurance policies require lifetime premium payments; most insurers offer limited pay policies that reduce the paying period to one that suits the policy owner's needs and circumstances. Life insurers (most notably mutual companies owned by policyholders rather than stockholders) offer a type of whole life insurance with a policy dividend that returns excess premium.Premiums for these kinds of policies are generally higher; policy vidends reflect this increase plus a share of any gain the insurer might have experienced in its ration or claims experience. In this way, owners of these kinds of policies "participate in the ration of the company and may receive a partial return of premium when there is a surplus. Accordingly, these types of policies are often referred to as participating (or par) policies. Policy dividends are never guaranteed.

Whole Life Options Whole life policies contain options called non-forfeiture, limited payment, loan, and exchange options, and, for some policies, an accelerated death benefit option. Non-forfeiture Options A whole life policy's cash value belongs to the policy owner. A whole life policy's nonforfeiture provision spells out the options the owner has with regard to these values if he or she cancels or surrenders the contract. If a policy is canceled or surrendered, the owner may take or apply the cash value in any of the following ways: in cash; to purchase a reduced amount of paid-up whole life insurance, payable on the same conditions as the original policy; or to provide term coverage in the same amount as the original policy.

Loan Options Most whole life policies contain a provision that allows policy owners to use their cash value as collateral for loans from the insurer. The insurer will loan, at a rate specified in the policy, an amount up to the accumulated cash value. The money does not have to be repaid; the loan will never be "called" by the insurer. 

https://www.northamericancompany.com/documents/35457/5721980/NAM-1617.pdf/b7c0e2bb-7765-42b5-9018-e27ba327e56e

https://www.investopedia.com/articles/insurance/09/indexed-universal-life-insurance.asp

Indexed Universal Life Insurance offers all the benefits of a universal life insurance policy crediting a guaranteed minimum interest rate and linking the excess interest rate to the movement of a particular equity index, such as the Standard & Poor's 500. Policy owners don't know in advance what excess interest their policies will earn, but they do know that the equity index increases in value, the excess interest credited to their policies will be a stated percentage of that increase. If the equity index decreases in value, their policies will be credited with the guaranteed minimum rate.

The impact of negative index returns is limited by a growth floor (typically 0% to 2%), and the maximum interest crediting rate is limited by a growth cap. The cap varies among insurers from 7% to 12%. Each index is made up of different companies and measures a slightly different mix of industries. Some plans have no cap.

The policy owner should examine and select the index account that meets his overall objectives.The major advantage of an indexed universal life insurance policy is the uption to participate indirectly in the upward movement of a stock index without assuming any of the risks involved in investing in the stock market.

Advantages of Universal Life

The policy's flexible provisions give owners considerable control over policy values. As a permanent plan, coverage extends for the whole of the insured's life. Flexible premiums allow owners to adjust payments to fit changing needs and goals. Due to flexible funding, policy owners have some control of the growth of cash values.As cash values grow, pon Premiums in excess of the co oncy s flexible provisions give owners considerable control over As cash value grows, policy values can decrease or skip premiums as circumstances require.Premiums in ecess of the cost of insurance insurance contribute fully to the cash value accumulation.Cash values grow tax deferred and are  easy to access.Interest credited to the IUL cash values reflective of current conservative) market conditions.

In the event that the insured is diagnosed with a qualifying critical, chronic, or terminal illness, the policyowner may be able to accelerate a portion of the death benefit for living needs

This type of trust is used to keep policy ownership out of an individual’s estate. It is often used where a life
insurance policy’s death benefit will be used to pay estate taxes.

Most companies have a person(s) whose skills are vital to the success of the business. A key person may be an owner, partner, or employee without whom the business would suffer serious consequences.

An executive bonus arrangement can be a powerful, yet simple way to provide a valuable benefit for company owners and key employees. It can help reduce turnover of key employees that could result in significant financial losses.

Whether you own a large company or a small family-operated business, the success of any business depends on smart strategy and planning.