Average Income in the United States

This chart shows the average income in the united states, and how it has changed over the years. Click on the image to view it in full size.

There is a maximum limit on the total yearly employee pre-tax salary deferral. The limit is $20,500 for the year 2022, . Employees who are 50 years old or over at any time during the year are now allowed additional pre-tax "catch up" contributions of up to $6,500 for 2022. For future years, the limit will be indexed for inflation, increasing in increments of $500. In eligible plans, employees can elect to have their contribution allocated as either a pre-tax contribution or as an after tax Roth...

Money as Debt

Many people find the current level of debt to be at an unbelievable level. It is difficult to see how an economy can survive when the majority of money spent is actually owed to someone else. So much so, that if there was no debt, there would be no money. If you're not sure what I mean, check out the following animated financial documentary entitled "Money as Debt". Paul Grignon's 47-minute presentation of "Money as Debt" tells in very simple and effective graphic terms what money is and ...

$19 Billion In Overdraft Fees

Overdraft fees have morphed into a big money-maker for banks. Kiplinger's recently reported that lenders collected more than $19 billion this year, up 85% from 2004. Banks charge as much as $35 for a check, ATM withdrawal or debit purchase when funds to cover them are lacking, even if it's a $2 cup of coffee that puts a customer into overdraft territory. Recently, my wife was charged a $20 overdraft fee, because her paycheck, which was supposed to be direct-deposited into her account, did...

Should I sign up for a Health Savings Account?

One of the joys of starting a new job, is wading through the benefit enrollment process. Unlike at my old job, I now have the option of signing up for a Health Savings Account. A Health Saving Account (HSA) is a tax-advantaged medical savings account available to taxpayers in the US who are enrolled in a High Deductible Health Plan. The funds contributed to the account are not subject to income tax at the time of deposit and the funds may be used to pay for qualified medical expenses at any ...

Your First Million Is the Toughest

I once heard someone say that earning his first $10,000 was much more difficult than earning his last $1,000,000. It may not seem to make a lot of sense, but when you understand compounding interest it makes more sense. And the end result can be even more amplified if you use leverage to your advantage. Here are a few charts that showcase how many years it takes to reach each $1 million threshold given that you regularly invest and earn a decent rate of return. To go from $0 to $1 millio...

Profiles in Personal Finance: Warren Buffet

Warren Buffet also known as “The Oracle of Omaha,” with a net worth of around $36 billion, ranks as the second third richest man in the world, just behind his friend and bridge partner Bill Gates. He came from a small town, leads a relatively simple life, and never forgot his roots, not only that he is also a great philanthropist. Arguably the greatest investor of all time, Buffet is chairman of Berkshire Hathaway. With his uncanny ability to detect undervalued companies and purchase them...

529 College Savings Plans For the Win

While we don't have any children of our own yet, we do have several young nieces and nephews. We all live close enough together that every time one of them has a birthday, the whole family gets together for the birthday party. For us, it usually means rushing out at the last minute to find a gift. We don't mind giving the gifts, but the reality is that the kids already have so many toys that each new one may only get a minute of attention before they move on to the next one. Possibly never...

Profiles in Personal Finance: Carlos Slim

Carlos Slim is currently the richest man on earth with 67.8 billion dollars in his account. His fortune has grown an average of 3.5 billion dollars a month so far this year. He lives in Mexico, a country where more than half the population struggles in poverty. Slim controlled companies currently account for nearly half of the entire Mexican stock exchange's value. Slim's ascent up the world wealth league has been very rapid. Here's a look at who he is and how he did it. (more…)

Who Owns America’s Wealth?

This short clip displays the distribution of wealth throughout the US population. Who do you think owns more wealth, the top 1% of the population or the bottom 90%? [youtube]8VHNXTBwj80[/youtube]

Money 101