Debt, Investment and Spending Analysis
With Tony’s GIC coming due next month with an approximate worth of $163,000, now would be a good time to conceder how best to spend this money.
Looking at your current net worth, I can see a major portion of your liabilities comes from your mortgage. Come October, this mortgage will have decreased to $137,000. Should you refinance your mortgage at the current rate of 5.5% for an additional 25 years, you’d be paying an $115,811 in interest. To compare, if you took this $137,000 and put it into a GIC, you’d receive $89,105 which is $26,706 less.
For this reason, I believe you should spend $137,000 of the GIC to pay of the house completely. This will leave you with an extra $2,500 a month when compared to your current cash flow.
Similarly, your credit card debt can also be taken care of with the funds from the GIC. As the interest on credit card debt is 30%, it’s a good idea to get this paid off as quickly as possible. Credit card debt can easily grow and get out of hand. The interest you would have to pay would be $1,365 more than you would earn if you’d put that same amount into a savings account for one year.
As CESGs also have a high interest rate of 20%, so it would be advantageous to put a full $10,000 into your children’s RESP. This would give you the maximum available CESGs for the year, giving you a return of $2,000. That’s $1,550 more than you would earn if you’d put that same amount into a savings account for one year.
The film Life and Debt is a documentary filmed by the award winning film director, Stephanie Black. The film examines the effects of globalization in Jamaica, from the point of view of Jamaican workers, farmers, and government and policy officials. Life and Debt shines a light on how the International Monetary Fund and the World Bank's structural adjustment policies affected Jamaica. It shows how the impositions made by the IMF and NAFTA, crippled Jamaican industry and agriculture and caused the end of Jamaica’s a self-sufficient economy. The documentary also emphasizes the difference between the Jamaica that the tourists see, and the Jamaica that the native citizens see.
15. What are your thoughts of the importance of understanding the per patient day (PPD)
The United States economy currently faces several problems affecting people throughout the country. These problems are ultimately affecting the growth of the United States. The growth of federal debt and deficit is seen as a major problem by the people of the United States especially when many people do not see the next president doing much more to improve it. The unbalanced labor market and immigration’s possible role in that has also been a discussion for many American citizens. It is important to also address the inequality regarding income. The deep-rooted trend of the rich getting richer and everyone else declining or remaining the same has created a lot of anger throughout the country. Lastly, the housing market has a huge affect on the economy considering housing is the biggest asset and one of the biggest drivers of wealth. Federal debt and deficit, immigration and the labor market, income inequality, and housing have all had negative effects on the United States economy today, while also affecting each other.
Consider the TSP: Are you familiar with the TSP, the federal savings program that military members are eligible to participate in? There is a bond fund, the G fund that is in effect a high yield savings account in that it pays a higher rate of interest than traditional savings accounts and does not lose money. (Regular bond mutual funds lose money when interest rates rise). Kevin, as long as you are a member of the Guard, you can open a TSP account by contributing a portion of your Guard pay. Then, once established, you can roll other retirement accounts into a TSP account. The G Fund insulates investors from rising rates, in that the return will increase if interest
IRC Section 56 defines a qualified housing interest § 56(e)(1) as interest on any indebtedness resulting from the refinancing of indebtedness meeting the requirements of qualified housing interest, but only to the extent that the amount of the indebtedness resulting from such refinancing does not exceed the amount of the refinanced indebtedness immediately before the refinancing. In short, if you refinance your home, you cannot typically claim the entire amount of the refinance as a deduction even if you take on more debt.
Cut back on general living expenses now, save the difference, and get used to a smaller data plan, last year’s fashions and fewer cable channels. It is easier to make small changes over time than deprive yourself all at once. Consider each of your monthly expenses and
With the United States only now beginning to recover from the throes of the Great Recession, the good American worker (armed with nightmarish memories of mass unemployment and bankruptcy) generally views large amounts of debt in a negative light, with television pundits regularly criticizing the federal government for the $18 trillion of national debt. Entire generations of Americans have been conditioned to view debtors as moochers and failures, unwilling to work hard in order to earn their own money. This negative opinion of debt is further compounded with the historic negative effects of debt: complete loss of assets, homelessness, and bankruptcy. However, contrary to public opinion, the national debt—and, in fact, all debts—will act
If you have high interest debt, you may want to look into paying it off even before the first option of saving the $10,000. Paying off this debt can only help you going forward because you won 't be paying the high interest attached to your debt. You are wasting a great deal
The Federal budget deficit is the amount of spending by the Federal government that is in excess of how much money the government brings in annually. While the Federal budget deficit has steadily decreased overall during the past fifteen years, our Federal debt continues to grow at a drastic rate. A review of how the Federal deficit has evolved over the past fifteen years, the rate of growth of the Federal debt during that same period, and how the two are connected will better explain this phenomenon.
Franklin Delano Roosevelt had a dream for the people of America. To overcome this financial burden and to get our country back on track again like before. Like in the poem 'Debts' by Karen Hesse, even though they may be struggling now to make ends meet, as long as the keep their hope no matter how small it may be they just might pull through. Roosevelt had done his best to get this country back on its feet as he promised in his 1932 campaign. He gave Americans hope about a new life that'd be coming soon. He'd worked on his "brain trust ", New government deal programs, and finally all the effort he put into this country. "Brain Trust" is a group of people who'd been very close to the president. All of them had worked in different fields. And
I think that my idea is much better because it will free up funds that could be reallocated where it is needed such as healthcare expenses. These issues really need to be addressed and reevaluated and something needs to be done immediately. It will never be practiced because the politicians will not reduce their income and we will continue seeing cutbacks from our veterans, elderly, and disabled populations.
The U.S debt limit is a legislative mechanism to limit the amount of debt the United States can acquire. It does this by limiting the amount of money the Department of the Treasury can borrow. The debt ceiling stops the U.S. from paying for expenditures after the limit has been reached. The debt ceiling stems from the constitution in article one which governs all of congress allowing congress to borrow money on the credit of the entire United States. According to the constitution all spending bills must originate in the House of Representatives. The debt ceiling as we know today was established by the First Liberty Bond Act. This act allowed us acquire debt in the form of bonds; the act established a $5 billion aggregate limit on the amount
The U.S. Deficit, Surplus, and Debt Effects Anytime there is a deficit, surplus, or debt there is someone or something it affects. There can either be too much, too little, or money owed to someone. When something like that happens, examples of people affected are taxpayers, future Social Security and Medicare users.
A company's budget serves as a guideline in planning and committing costs in order to meet tactical and strategic goals. Tactical goals such as providing budgetary costs for daily operations, and strategic objectives that include R&D, production, marketing, and distribution are all part of the budgeting process. Serving as a guideline rather than being set in stone, the budget is a snapshot of manager's "best thinking at the time it is prepared." (Marshall, 2003, p.496) The budget is a method in which to reign-in discretionary spending, and will likely show variances between what costs have been anticipated and what costs are actually incurred.
Ask yourself how much can you afford each month once all your monthly bills have been paid?