Finance

 Finding stocks that offer both capital appreciation and a generous dividend can often be a challenge for investors. Typically, high-yielding dividends are associated with stocks that have experienced significant declines in their share prices. However, imagine discovering a stock that not only presents a high-yielding dividend but has also outperformed all its competitors over the past 52 weeks, achieving substantial gains while distributing monthly dividends. Consider Modiv Industrial Inc. (NYSE: MDV), a Reno, Nevada-based diversified REIT managed internally, housing 44 single-tenant net-lease properties spanning 4.9 million square feet across 16 states. Among these properties, 39 are industrial, four are office spaces, and one is a retail property, housing 30 tenants. With a 100% occupancy rate and an impressive weighted-average lease term (WALT) of 14 years, this portfolio also features annual rental increases averaging 2.5%. Established in 2015, Modiv had its IPO in February 2...

  Changes are imminent for catch-up contributions, effective from 2024 onwards. Certain employees who typically contribute additional funds to employer-sponsored retirement plans, such as a 401(k), will now be required to allocate this money into a Roth account. Consequently, these contributions won't be eligible for income tax deductions. However, the gains accumulated within the account can be withdrawn tax-free later in life. This alteration primarily applies to individuals earning $145,000 or more. Catch-Up Contributions Explained: Tax-advantaged retirement accounts have maximum contribution limits, determining the amount one can invest annually without incurring taxes. For instance, in 2023, an individual could contribute a maximum of $22,500 to a 401(k) and up to $6,500 to an IRA. To encourage retirement savings, the IRS permits "catch-up contributions" for individuals aged 50 or older. Those above 50 can contribute an extra $7,500 to a 401(k) or an additional $1,00...

The Impact of Wealthy Households Moving Between States While households earning over $200,000 annually make up a small fraction of total tax returns filed, their relocation between states packs a powerful financial punch. If a state loses more high-earning taxpayers than it gains, it could face a decline in tax revenues, affecting its fiscal stability. Even though these high-earning households constitute less than 7% of total tax returns filed across states and D.C. in 2020, their migration trends continue to be newsworthy. SmartAsset aimed to identify which states experienced the most movement among high-earning households. The analysis focused on the inflow and outflow of tax filers making at least $200,000 between 2019 and 2020. Key Insights - Sun Belt Leads the Way: Most of the states experiencing a substantial influx of high-earning households are located, at least partially, in the Sun Belt region. Florida tops the list. -State Taxes Matter: States not imposing income tax show a ...

 "Decoding Pension Buyouts: Navigating the Road to Retirement" Pondering whether to take the lump sum or opt for monthly payments from your pension? You're not alone. Pension buyout decisions are becoming more commonplace, sparking a host of considerations for those with retirement plans. Let's break down the complexities and help you make an informed decision that aligns with your financial future. The Dilemma: Lump Sum vs. Monthly Payments When faced with a pension buyout offer, timing becomes paramount. The quandary lies in when you'll receive the payout and how long you anticipate living. A lump sum payout earlier in your retirement can significantly boost its overall value. Conversely, if you're in it for the long haul, monthly payments may accumulate into a more substantial sum over time. For instance, imagine being offered $48,000 to forgo a $462 monthly payment. If you're past a certain age, playing the percentages might lead you to lean towards th...

 Inheritance can be a welcome financial boost, but it often comes with tax complexities. When you inherit property or assets, rather than cash, you typically don't incur immediate taxes. Taxes come into play when you decide to sell these inherited assets, in the form of capital gains taxes. These taxes are calculated based on a concept known as a stepped-up cost basis, ensuring you're taxed only on the appreciation that occurs after you inherit the property. To navigate this process correctly, consulting a financial advisor is a prudent step. Let's delve into how capital gains are handled when inheriting property. Inheritances can be subject to three main types of taxes: 1. Inheritance taxes: These taxes are paid by heirs on the value of the inherited estate. Federal inheritance taxes are non-existent, with only six states imposing some form of inheritance tax. Given the state-specific nature of inheritance taxes, discussing them in detail is beyond the scope of this articl...

Prominent investor Warren Buffett has been offering investment wisdom throughout his illustrious career. A strong advocate of value investing in well-managed large-cap equities, Buffett once remarked, "If you don't find a way to generate income while you sleep, you'll be working for the rest of your life." Investing in high-quality dividend-yielding stocks can help you build a significant source of passive income, offering financial security for retirement and additional earnings. Companies known as "dividend aristocrats" possess a lengthy track record of consistently paying dividends, making them reliable income sources, especially during economic downturns and market turbulence. Currently ranked as the fifth wealthiest person on Forbes' real-time billionaires list with a net worth of $114 billion, Warren Buffett is a strong advocate of leading blue-chip stocks. He once cautioned against investments that attract applause, noting that the most significan...

  Unpacking the Complex Regulations Regarding Mandatory Withdrawals from Retirement Funds This year, a perplexing tax requirement has become even more complex due to the new age for required minimum distributions (RMDs) from retirement accounts. Many older adults are unaware that they must begin withdrawing money from their retirement accounts in their early 70s and pay income taxes on those funds. This is the government's way of collecting taxes on retirement savings that have been growing tax-deferred for decades. The confusion arises not only from the requirement itself but also from the shifting age at which it begins. For years, the RMD age was set at 70 ½, but changes in recent legislation have altered this timeline. The Secure 1.0 law of 2019 pushed the age to 72, and Secure 2.0 in 2022 raised it to 73, effective this year. Further changes are on the horizon, with the age set to increase to 75 starting in 2033. Juan C. Ros, a financial advisor at Forum Financial Management i...

 Is it necessary to include a personal loan in your tax filings? When you take on new debt, you might be curious about how it will factor into your taxes. Filing your taxes can be quite intricate, as you'll need to provide the IRS with essential details about your income, household, debts, and more. The good news is that personal loan proceeds typically don't count as income. This means you usually don't have to include your loan information in your tax return. However, there are situations where your personal loans could come into play. So, are personal loans subject to taxation? Well, each year when you file your income taxes, the IRS will ask you to report your taxable income. This includes your gross income, such as wages, salary, interest, dividends, rental income, business income, capital gains, and other sources of income. The sum of all these income types is what you'll owe taxes on. The better news is that personal loans aren't considered income, so you usu...