Personal Finance¶
Dave Ramsey¶
Wikipedia: https://en.wikipedia.org/wiki/Dave_Ramsey
Homepage: http://www.daveramsey.com/
Twitter: https://twitter.com/daveramsey
The 7 Baby Steps
Envelopes; physically separate envelopes
Personal Budget¶
- https://www.reddit.com/r/personalfinance/wiki/budgeting
- Example / starter personal budget spreadsheets: https://www.reddit.com/r/personalfinance/wiki/tools#wiki_redditor-created_spreadsheets
Personal Income¶
Wikipedia: https://en.wikipedia.org/wiki/Income
Occupational Outlook Handbook¶
Homepage: http://www.bls.gov/ooh/
Personal Expenses¶
Wikipedia: https://en.wikipedia.org/wiki/Expense
Technically, an expense is an event in which an Asset is used up or a Liability is incurred. In terms of the Accounting Equation, expenses reduce owners’ Equity.
TODO: types of expenses
Interest¶
Wikipedia: https://en.wikipedia.org/wiki/Interest
Compound interest¶
Doubling time¶
Wikipedia: https://en.wikipedia.org/wiki/Doubling_time
Rule of 72¶
Wikipedia: https://en.wikipedia.org/wiki/Rule_of_72
Taxes¶
Wikipedia: https://en.wikipedia.org/wiki/Tax
See:
- Accountant (Accounting)
Income tax¶
Wikipedia: https://en.wikipedia.org/wiki/Income_tax
Property tax¶
Wikipedia: https://en.wikipedia.org/wiki/Property_tax
Capital gains tax¶
Gift tax¶
Wikipedia: https://en.wikipedia.org/wiki/Gift_tax
- https://en.wikipedia.org/wiki/Gift_tax_in_the_United_States
- In the USA, in 2015, you must pay gift tax
on any amount over $14,000 (per donor, per beneficiary).
- So, two parents, for example, must pay taxes on any amount
over $28,000.
- Gift tax does not apply to e.g. trusts and, for example,
direct payments for e.g. school tuition.
- This affects eligibility for financial aid.
- See also:
- Gift tax does not apply to e.g. trusts and, for example,
direct payments for e.g. school tuition.
- So, two parents, for example, must pay taxes on any amount
over $28,000.
- In the USA, in 2015, you must pay gift tax
on any amount over $14,000 (per donor, per beneficiary).
Charitable contributions¶
- In the USA, charitable contributions to qualifying (501(c)(3)) non-profit organizations are tax deductible.
- https://en.wikipedia.org/wiki/Charity_(virtue)#See_also
Retirement¶
Wikipedia: https://en.wikipedia.org/wiki/Retirement
401(k)¶
Wikipedia: https://en.wikipedia.org/wiki/401(k)
- 403(b) – non-profits
- 457(b) – governmental employers
401(k) match¶
401(k) rollover¶
IRA¶
Roth IRA¶
Wikipedia: https://en.wikipedia.org/wiki/Roth_IRA
Healthcare¶
Wikipedia: https://en.wikipedia.org/wiki/Health_care
Health insurance¶
- https://en.wikipedia.org/wiki/Health_insurance_in_the_United_States
- https://en.wikipedia.org/wiki/Health_insurance_in_the_United_States#Public_health_care_coverage
- https://en.wikipedia.org/wiki/Health_insurance_in_the_United_States#Private_health_care_coverage
Health Savings Account¶
A Health Savings Account is a tax-advantaged savings account.
- An employer can contribute to a Health Savings Account pre-tax.
- An employee can contribute to a Health Savings Account pre-tax (*).
- Health Savings Account funds roll-over from year to year.
Long Term Care¶
Wikipedia: https://en.wikipedia.org/wiki/Long-term_care
Advance Care Directive¶
“Advance Care Directive, Living Will, Personal Directive, Advance Directive, Advance Decision”
Estate planning¶
“Probate”
- https://en.wikipedia.org/wiki/Administration_(probate_law)
- https://en.wikipedia.org/wiki/Probate_court
Trust¶
Wikipedia: https://en.wikipedia.org/wiki/Trust_law
Will and Testament¶
Estate tax¶
- https://en.wikipedia.org/wiki/Estate_tax_in_the_United_States
- http://money.howstuffworks.com/personal-finance/personal-income-taxes/inheritance-tax1.htm
- Estate tax is paid by the estate (after debts are paid).
Inheritance tax¶
- Inheritance tax is paid by the beneficiaries. (“double taxation”)
Intestacy¶
Wikipedia: https://en.wikipedia.org/wiki/Intestacy
- If there is no will defined, the estate is “intestant”.
- https://en.wikipedia.org/wiki/Intestacy#United_States_and_Canada
- State laws differ.
- Not all states go by the Uniform Probate Code:
- https://en.wikipedia.org/wiki/Uniform_Probate_Code
- https://www.law.cornell.edu/uniform/probate
- http://www.uniformlaws.org/shared/docs/probate%20code/upc%202010.pdf
- “SECTION 2-103. SHARE OF HEIRS OTHER THAN SURVIVING SPOUSE.”
- It is more complicated than this, but, roughly, if there is not a more specific will, the first matching class takes everything (after debts are paid and then federal (and state) estate taxes):
- .0. Surviving spouse
- .a.1. decendents (children)
- .a.2. parents (equally)
- .a.3. parents’ decendents (e.g. siblings)
- .a.4.A. 1/2 each to paternal/maternal grandparents
- .a.4.B. 1/2 each to paternal/maternal grandparents’ decendents
- .a.5. [... speak with an estate attorney ...]
- .b. deceased spouse’s decendents (equally)
- “SECTION 2-103. SHARE OF HEIRS OTHER THAN SURVIVING SPOUSE.”
- https://en.wikipedia.org/wiki/Uniform_Simultaneous_Death_Act
- https://en.wikipedia.org/wiki/Uniform_Probate_Code
Note
If the default state order of succession applies (e.g. when there is no other will defined), for one matching class to gift all or part of their inheritance to others, they then must pay both Inheritance tax and Gift tax on any amount over the annual exclusion for the year.
Digital Will¶
Wikipedia: https://en.wikipedia.org/wiki/Digital_Will
Social Security¶