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April 13, 2020

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If you’re starting a business with someone else If you’re starting a business with someone else (or multiple people), the partnership is the most basic legal structure. They’re easy to start and maintain as long as you lay the right groundwork at the beginning. Here’s how it works: Partnership earns money from its business ↓ Partners are paid by the business from any profits ↓ Partnership files tax return but pays no taxes ↓ Partners pay personal income taxes on the income received from the business Unlike some other types of businesses, partners share profits and losses. They also jointly manage and make decisions for the business. Partnerships are “pass-through” entities. This means that profits are held not by the business but rather by the individual partners. Partnerships get to skip paying taxes at the business level and are only taxed at the individual income tax level. (Partnerships aren’t the only structure that get this pass-through treatment—some corporate structures do too.) There are three main types of partnership: 1. General Partnership 2. Limited Partnership 3. Limited Liability Partnership Swipe up in today's stories to learn more about the pros and cons of partnerships, how to get started, and more!
Have you heard of the finance term, “big uglies? Have you heard of the finance term, “big uglies?” Over time, this term has broadened to include any "unsavory" investment interests. These stocks often trade at low valuations, as their generally steady returns are often overlooked in favor of more appealing higher growth opportunities.
Let's talk #LifeInsurance! 📃✅ Term and perma Let's talk #LifeInsurance! 📃✅ Term and permanent policies are the two main types of life insurance. With both types of policies, you make ongoing premium payments to an insurance company. In exchange, the insurer may pay a lump sum to your loved ones if or when you die. But term and permanent policies have important differences in how much they cost and the specifics of if or when they’ll pay out a benefit. The key distinction between term and permanent life insurance is how long you’re covered for. ➡️ Term: Coverage lasts for a set period of time (like 20 years). If you die during the policy’s term, the insurance will pay out to your family. If you live past the policy’s term, then it won’t pay anything. Most companies offer policies for as little as one to as many as 30 years. ➡️ Permanent: Coverage lasts for your whole life. Whether you pass away the year after you buy the policy or live to be 110, the insurance company will pay your beneficiaries (as long as you’ve paid the premiums). You might also hear these policies referred to as “whole life.” As you might guess, because permanent life insurance covers you forever, it’s more expensive than term. In fact, your annual premium can cost anywhere from five to 15 times more than similar term life insurance. A permanent insurance policy also comes with a savings or an investment account (it may be called the policy’s “cash value”). As you pay premiums over time, the value of this account grows. You may be able to borrow against the account’s cash value or take a withdrawal from it. Do you have term or permanent life insuance? Swipe up in today's stories to learn more!
The truth? Credit cards are dangerous when you spe The truth? Credit cards are dangerous when you spend money you don’t have. If you pay them off every month, they’re a good way to build credit and collect rewards. (Just be sure to watch out for the APR and added Fees!) 💸
Credit card debt can be overwhelming. As interest Credit card debt can be overwhelming. As interest accrues, your balances may keep increasing even if you’re making regular payments. You may even start to feel like your debts are beyond your control. But getting out of credit card debt—even significant debt—is possible. The secret is to make a workable plan that you can stick to until your last account is fully paid off. The first step in getting out of credit card debt is figuring out how much you owe and how many cards you need to pay off. Here’s how: ➡️ Step one: Make a list of all your credit cards. You can’t get a handle on your debts until you know exactly which accounts need to be addressed. ➡️ Step two: Figure out your balances and interest rates. Laying out your balances and how much interest you’re being charged on each can help you decide on the best approach. ➡️ Step three: Pay off any low-hanging fruit. When you review your accounts, you may realize that one or two have fairly low balances. If you’re able to pay these off in full, it’s a good idea to clear them as quickly as possible, especially if they charge high interest. ➡️ Step four: Make a plan for the rest. Coming up with a plan of action can reduce the stress you’re feeling and make you feel more in control. As you’re chipping away at your balances, you may need to decide which cards to prioritize. Although you should always make at least the minimum payment on all your cards (to protect your credit score), choosing just one or two accounts to tackle aggressively can help you stay focused. Do you struggle with credit card debt? Swipe up in today's stories to learn more, including more strategies to manage your debt and get back on track.
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