Author: Arabian Media staff

If your debts have become unmanageable and you cannot pay them, you might consider filing for bankruptcy to discharge them and give yourself a fresh financial start. But bankruptcy has serious consequences you should know about before making any decisions. Here’s what happens when you file for bankruptcy, along with some alternatives that you might want to consider first. Key Takeaways Bankruptcy is a legal process for getting relief from debts that you cannot repay. If you file for personal bankruptcy, you generally have two options: Chapter 7 or Chapter 13. A Chapter 7 bankruptcy will sell off many of…

The International Monetary Market (IMM) plays a pivotal role in global finance, offering a platform for currency futures trading. Originating in the early 1970s, it has evolved to facilitate various financial strategies, including hedging and speculation. This article explores the history, significance, and operations of the IMM, helping you understand its impact on global markets. Key Takeaways The International Monetary Market (IMM), a division of the Chicago Mercantile Exchange, was formally implemented in 1972 to facilitate global currency trade, stemming from the breakup of the Bretton Woods system.The IMM primarily trades currency futures, initially focusing on trades against the U.S.…

Key Takeaways Your Social Security benefits may be taxable—up to 85%—depending on your combined income and filing status.A new deduction for older adults can cut taxes for those 65-plus, but it phases out at higher income levels. Working in retirement can limit the deduction and temporarily cut your Social Security benefits. As a retiree, Social Security benefits can make up a large portion of your income, and taxes can cut into that. A new deduction for older adults could offer some tax relief—but only if your total income stays below certain thresholds. How Social Security Benefits Are Taxed First, let’s go…

When you purchase a stock, do you use data to drive your decision? Have you ever looked at the fundamental analysis section of a stock’s information and found yourself lost? In this article, we will put together some of the most important metrics and explain how to use them to make more informed decisions. Key Takeaways Return on Investment (ROI) measures the profitability of an investment by dividing the return by the cost. However, this metric can be manipulated if certain costs are excluded, so it’s crucial to understand the calculation method.Earnings Per Share (EPS) reflects a company’s profit per…

Fact checked by Katrina MunichielloReviewed by Erika RasureDuPont analysis is a potentially helpful tool for analysis that investors can use to make more informed choices regarding their equity holdings. The primary advantage of DuPont analysis is the fuller picture of a company's overall financial health and performance that it provides, compared to more limited equity valuation tools. A main disadvantage of the DuPont model is that it relies heavily on accounting data from a company's financial statements, some of which can be manipulated by companies, so they may not be accurate.DuPont analysis is an equity evaluation approach that uses financial…

Key Takeaways Retiring in a state that doesn’t tax 401(k) or pension withdrawals lets you keep more of your income and stretch your savings further. Of the top 50 U.S. cities to retire, 18 are located in states with no state tax on retirement income. From low housing costs to access to health care, arts, and entertainment, these tax-friendly cities provide a balance of financial security and quality of life. When you’re on a fixed retirement income, every dollar counts. That’s why it pays to live in a state that won’t tax your 401(k) or pension withdrawals—you get to keep…

Buying a home is one of life’s most exciting (and expensive) milestones, and understanding each step can help you make smart decisions about the place you’ll call home. This guide will walk you through the homebuying steps, including how to budget for a monthly mortgage payment and where to look for financing options. It also offers tips and vital information to prepare you for this journey. Key Takeaways Assess your financial readiness and credit score before buying a house. Determine your budget and calculate how much you can afford to spend. Research various financing options, such as conventional, FHA, and…

Investors use financial statements to obtain valuable information used in the valuation and credit analysis of companies. This makes it important to understand how business accounting is done and which principles guide financial statement preparation. Knowledge of accounting helps investors determine an asset’s value, understand a company’s financing sources, calculate profitability, and estimate risks embedded in a company’s balance sheet. Key Takeaways  Investors must understand how business accounting is done and the principles that guide financial statement preparation to effectively perform investment and credit analysis. This knowledge helps them determine an asset’s value, understand a company’s financing sources, calculate profitability,…

There are several things that investors do to protect their portfolios against risk. One significant way to protect one’s portfolio is by diversifying. In short, this means an investor opts to include various types of securities and investments from different issuers and industries in their portfolio. The idea here is the same as the old adage “Don’t put your eggs all in one basket.” When you are invested in many areas, if one fails, the rest will ensure the portfolio as a whole remains secure and produces profit. Added security can be measured in the increased profits that a diversified portfolio tends to bring…

Key Takeaways Only 14% of participants contributed the annual maximum in Vanguard-run defined contribution retirement plans such as 401(k)s in 2024. High-income earners are more likely to max out their 401(k)s, but even if you have a modest income you can reach this goal. The power of compounding returns means you have a strong incentive to save as much as possible, as soon as possible. The reality of the U.S. retirement system, which is that you are largely responsible for your own retirement security outside of Social Security, is that most workers chronically under save. Just over one-third of non-retirees…