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Tip of the Day Ditch Your Car

Ditch Your Car - If you live in a community where everything is within a reasonable distance, you need to ask yourself why you are driving a car, which when...

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Stock Purchase Plan

Stock purchase plan - A stock purchase plan is also known as an employee ownership plan. A stock purchase plan is set up so that employees can buy shares in the company they work for. The company forms the trust so that their employees can deposit money into the plan for the purchase of company stock. The employer may even match dollar for dollar. The fund is tax qualified because its contributing employees are part owners in the company. Taxes can be collected immediately or they can be deferred depending on the set up. The fund then becomes a retirement fund similar to the IRA and 40K1 plans but the condition is that the contributions are invested in the company stock. The company benefits due to the increasing cash flow, tax savings and dedicated employees. Stock purchase plans are regulated and have several restrictions.

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Definition of the Day Treasury Bill

Definition: A short-term debt obligation issued by the government to finance government activities.  These are commonly referred to as "T-Bills."  They are usually issued in maturities of one, three, or six months.Advice: T-bills are zero-coupon bonds, which mean that they don't pay out interest.  Instead, an investor buys them at...

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