Strategies for Improving Workplace Behavior and Performance

From Leadership Expert Dr. Diane Hamilton

Entrepreneurs and Celebrities Use Kickstarter for Funding

 

Kickstarter has been a successful crowdfunding option for potential entrepreneurs to garner cash.  However it has not been without some issues.  According to The Wall Street Journal article The Trouble With Kickstarter, “The only thing worse than having to watch your friend’s arty movie is having to pay for it too.” Aside from the problems associated with pestering friends to donate, there have been some successful ventures thanks to this site.  The following list contains some of names of celebrities who have used the site:

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Credit Report Options

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Anyone who has applied for a home loan probably has some familiarity with the importance of having a strong FICO score.  FICO stands for Fair Isaac Company.  There are three major bureaus that provide credit information (Experian, Equifax and TransUnion).  These bureaus got together and created a competing score called the VantageScore. CreditKarma explained, “The VantageScore offers additional features, such as predictive scoring and a 24-month review of credit history, that the classic FICO model doesn’t incorporate.” For a comparison of the Vantage Score to the FICO score, click here.

This new score has a different scale.  Experian, Equifax and TransUnion used a score that ranged from 300 to 850.  This new VantageScore has a range from 501 to 990.  This has led to some confusion as to how these scores compare.  Lenders usually charge consumers to check their credit. They obtain the three scores from the major bureaus and generally use the middle score to base the lending rate that they offer the borrower.  Some lenders have begun to use the VantageScore.  For more information see:  What Credit Scores to Mortgage Lenders Use?

Borrowers may want to obtain their score in order to repair any issues prior to applying for a loan. This can cost them around $20 if they want to receive a full Equifax or TransUnion score.  Experian does not offer reports to consumers.

There are some other free options for credit reports.  These include:

CreditKarma.com – Offers a TransUnion Transrisk and Vantage Score report.

CreditSesame.com – Offers Experian National Equivalency Score

Credit.com – Offers Vantage Score

While many sites offer different reporting options like these, they may not show exactly the same scores that the lender will obtain when they receive all three major bureau reports.  Consumers, who apply for a loan and have paid to have their credit checked, can ask for a copy of their credit report from their lender.

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How to Avoid Paying 85% Tax on Social Security

 

Baby Boomers (those born between 1946 and 1964) have found out some hard lessons recently about how easily their retirement money can disappear.  One thing they may not have counted on is how much they may be taxed on Social Security benefits.

According to the Social Security Administration Website, the guidelines for paying taxes on social security include:

  • file a federal tax return as an “individual” and your combined income* is
    • between $25,000 and $34,000, you may have to pay income tax on up to 50 percent of your benefits.
    • more than $34,000, up to 85 percent of your benefits may be taxable.
  • file a joint return, and you and your spouse have a combined income* that is
    • between $32,000 and $44,000, you may have to pay income tax on up to 50 percent of your benefits
    • more than $44,000, up to 85 percent of your benefits may be taxable.

Many adults receive social security as their only form of income. If that is the case, there income level would be low enough that they would not have to pay taxes or even file a tax form.  See topic 423.

For individuals who are lucky enough to have saved a few bucks for retirement, check out the following articles for help to avoid having to pay this high percentage:

  1. When Uncle Sam Wants His Money Back
  2. Avoiding the Social Security Tax Trap
  3. History of Taxation of Social Security
  4. AARP: Social Security and Taxes
  5. How Much Social Security Benefit May Be Taxed

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Top 7 Ways for Entrepreneurs to Obtain Funding

 

The good news is that entrepreneurs have more options for funding than in the past.  According to Entrepreneur.com, access to capital is improving for small businesses. This may be a frightening time to begin an entrepreneurial venture.   However, there are an increasing number of available financing options. The following list contains some of the most prevalent in the current market.

  1. Banks – The number of people going to banks for loans is increasing. “According to a report this week on banks with more than $10 billion in assets, the overall volume of loan applications increased by 5.6 percent in September over August, reports Biz2Credit, an online credit marketplace in New York City that connects small and midsize businesses with lenders.”
  2. SBA Loans – Entrepreneurs have also traditionally gone with loans from the Small Business Association.  “In 2011… it backed $30.5 billion in 61,689 loans to small business.”
  3. Angel Investors – “Angels invested $9.2 billion in 27,280 startups in the first two quarters of 2012, a 3.1 percent increase in dollars and a 3.7 percent increase in number of entrepreneurial ventures over the same time in 2011, according to a report this week from the Center for Venture Research at the University of New Hampshire.”
  4. Venture Capitalists – “In 2012, venture capital firms have raised $16.2 billion, representing a 31 percent increase from the $12.4 billion raised in the first nine months of 2011, according to a report from Thomson Reuters and the National Venture Capital Association released this week.”
  5. Crowdfunding – There have been some unusual ways that entrepreneurs have managed to raise funds.  Crowdfunding has been growing in popularity.  Entrepreneurs can raise funds through networking on the internet.  Supports fund other people’s ideas or interests.
  6. Microlending – One of the top microlending sites is Kiva.org. Kiva is “a non-profit organization with a mission to connect people through lending to alleviate poverty. Leveraging the internet and a worldwide network of microfinance institutions, Kiva lets individuals lend as little as $25 to help create opportunity around the world.”
  7. PledgingKickstarter is a unique site allows entrepreneurs to keep ownership and control over their work while tens of thousands of people pledge millions of dollars to help finance their creative ideas. The idea must reach its funding goal or no money changes hands. Entrepreneurs that receive their anticipated funds, can test concepts without risk.

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