Can we contribute to a Coverdell ESA?
We are a one income family earn 125k a year. Can we contribute to a Coverdell ESA?Answers: Found this on the web. When adjectives else fails, 'G00GLE it'.
Who Can Contribute to a Coverdale Education Savings Account?
Anyone whose "modified on the same wavelength gross income" is less than $110,000 (for nation filing a integrated tax return, the income mark out is $220,000) can contribute to a Coverdale ESA, including the beneficiary. For most people, your modified used to gross income is the adjusted gross income on your federal income duty return. Organizations can also contribute to Coverdale ESAs without income requirements. All contributions must be made previously the beneficiary of the ESA turns 18.
do a 529. newer and SO much better. G00GLE it.
How does people saving their money boost the economy?
Answers: It doesn't. People spending their money boosts the economy, as this gives business more revenue.
It depends on the context.
If an economy ( of a country) is slowing down because of decreasing consumer spend ( read US for now) then the economy can get a boost if people started spending their money as that will lead to increased industrial consumption. Increased industrial consumption means more work to be done within these industries and thus lead to job creation and thus generally more wealth gets created and thus a 'boosted economy'. In this case, governments will decrease bank interest rates too make savings unattractive and lending attractive.
But at some stage a country can lead to a stage that they cannot afford some of the side effects of this, which is inflation and dependence on imports. If the inflation hits too high and import bill is very big, then the overall economy will be under seige and it has to lend money from other better economies ( read richer countries). In this situation, people needs to save money in banks rather then spend in the market. In this case, governments will increase bank interest rates too make savings attractive and lending unattractive.
every dime or pound saved anywhere adds to the amounts available in the banking system to lend out. since the banks make money doing that, they lend it out to companies who use the collected funds to buy extra stock in trade for the holidays, or run another shift for a special order, etc.
this causes additional demand for truck drivers, or machinery tenders, or someone else somewhere in the economy, and so wages paid increase due to longer hours [and the government collects added tax revenues].
a bit of the money becomes added profits which the company that earns them pays taxes on [increasing tax revenues] and then gives the rest to their shareowners -- who might be pensioners or the couple next door. [makes no difference if the extra bit is a special dividend or a rise in the share price.]
the added demand in various parts of the economy causes a few of the firms to expand their investment in equipment so they can increase output. the new equipment has to be installed so installers get paid [tax revenues] and someone has to figure out how to best employ it [he gets paid and so tax revenues rise] and then the workers are re-trained [the trainer gets paid and pays taxes], and on and on.
thus, money doesn't disappear when someone saves it. the banking system makes it reappear somewhere else -- specifically somewhere that it can be productively used to increase profits and sales which increases hours worked and wages, all of which increase tax revenues.
Voila! boost to the economy.
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this holds as long as the marginal return to added capital, over the required rate of return the capital earns, is positive. [marginal means on the next unit].
Economists believe that this holds true for every developed and developing country in the world, with the possible exception of Singapore. [Singapore is overbuilt and has excess capital goods which aren't very useful because they're required their people to save a bit too much over the decades of their retirement scheme.]
Let me add a bit here -- increasing the amount of tools and equipment used by the average worker [think new computer which is faster than the old one] increases the leverage the worker has over his job -- his output per hour increases.
it is the added leverage -- the increase in worker productivity due to the added capital goods which the saving paid for -- that allows this to do more for the economy than simply spending the money. spending has no leverage on output, it merely adds to the current demand but does not increase worker productivity.
btw, increasing worker knowledge also adds to worker productivity and thus gains leverage on output -- which makes the worker more valuable to the employer who can then afford a wage increase (in both cases).
does this help?
Where can I found new stock quotes?
Answers: Yahoo! Finance
http://finance.yahoo.com/