What Is the Expense Ratio for a 401(k)?
Your 401(k) plan may be your most important retirement asset. A 401(k) plan is an employer-sponsored retirement plan. Traditional employer-sponsored retirement plans allow you to save money for...
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What Is a GNMA Bond Fund?
Investors who are looking for current income as well as safety often turn to government bond funds, like the ones that hold Ginnie Mae securities. These GNMA funds provide investors with a steady...
View ArticleHow to Analyze the Operating Expense Ratio
Operating expense ratio is one of the best measures you can calculate in order to see how a company is performing. Operating expense ratio shows you what percentage of a company's revenues is used to...
View ArticleHow Reasonable Are Inverse Bond Funds?
Inverse bond funds are exchange-traded funds designed to change value in the opposite direction of bond prices. The funds offer investors one way to make a bet on changing interest rates. An investor...
View ArticleHow to Calculate Coverdell ESA Basis
A Coverdell Education Savings Account (ESA) allows taxpayers to establish custodial accounts using post-tax funds. Custodians do not pay income taxes while their accounts grow or earn interest but may...
View ArticleWhat Do I Do if My IRA Matures?
An Individual Retirement Account is a tax-deferred savings vehicle used to provide retirement income. Assets are contributed over working years based on earned income with two basic structures...
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Declaring a Loss on Mutual Funds
If you have lost money on a mutual fund investment, Internal Revenue Service tax rules allow you to declare the loss as a capital loss and use the loss as a tax deduction. Capital losses are first used...
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Disadvantages & Advantages in Using Bonds & Common Stock to Fund Corporate Debt
When companies need to borrow money they have a number of options at their disposal. Most businesses can simply go to a bank and open a line of credit or even take out a small business loan. But what...
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What Is the Difference Between a Weighted Average Expense Ratio & a Net...
When investors choose mutual fund investments for their portfolios, it's important for them to think about some of the management costs associated with different fund options. All mutual funds pay a...
View ArticleHow to Categorize Your Money Market Funds on a Balance Sheet
A money market fund is a type of investment that pools investors’ money to buy safe, short-term assets that generate interest. The fund is highly liquid, which means an investor can typically withdraw...
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The Difference Between Statutory Expense Ratio & GAAP Expense Ratio
Statutory expense ratios are calculated under Statutory Accounting Principles (SAP), which are governed by the National Association of Insurance Commissioners (a nonprofit coalition of state insurance...
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Tax Consequences of an ETF vs. a Closed End
It's important to consider potential tax consequences when investing in a security. Dividends and interest payments are taxed as income, and any increases in the value of a security are taxed as...
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How to Decline a Loan
The rising cost of college tuition has resulted in a subsequent rise in the amount of student loans applied for to pay for those tuition costs. Most students seeking financial aid must complete a Free...
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Real Estate ETF vs. REIT
Real estate ETFs, or exchange-traded funds, and REITs, or real estate investment trusts, are similar in some ways but quite different in others. They're both a way to invest some of your funds in real...
View ArticleDo 401(k) Funds Charge Fees?
According to the U.S. Department of Labor, if you are 35 and getting a 7 percent return on your 401(k), a fee of 1.5 percent instead of 0.5 percent will decrease your savings by 28 percent by the time...
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Risks of Transactional Funding
Transactional funding makes it possible for real estate investors to quickly buy and sell a property. Simply put, transactional funding allows the real estate investor to use funds to start the...
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How to Figure Operating Expense Ratio
An operating expense ratio measures an investment property’s total operating expenses as a percentage of its potential gross income. Operating expenses are the costs an investment property owner pays...
View ArticleHow to Calculate Cost Basis After a Spin-Off
Cost basis is the total amount that you paid for an investment, such as a stock. A spin-off occurs when a company divides itself into two or more pieces. If you own stock in a company that has a...
View ArticleWhat Is a Common Dividend Vs. a Plan Dividend?
When you invest in a company, you're entitled to earn dividends on that company's profits. Dividends are awarded to investors according to the shares they own in a company. The different types of...
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The Advantages of Pooled Funds
A pooled investment vehicle is any investment company as defined in section 3(a) of the Investment Company Act of 1940, according to the Securities Lawyer's Deskbook of The University of Cincinnati...
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