A stock is a share of ownership in a company, whereas a bond is a debt instrument with a set interest rate, time frame, payment intervals and principal payment at the end.
Risk and reward are key with stocks and bonds. Stocks are riskier, with the reward greater, as well as the possible loss. Bonds make consistent money and you tend to get some back if the company doesn’t fare well.
Stocks and bonds are risky investments, but it’s important to know their uses.
There are two types of tax planners; historians and futurists.
Tax historians look to the past to plan for their taxes and can often be left with costly surprises or pay more taxes than they should by not researching changes in the tax code.
Being a tax futurist, where you plan your taxes in the first quarter based on changes to the tax code, employer benefits, and personal situation, helps you control the taxes and keep money in your pocket.