Category: Finance

If you buy health insurance from healthcare.gov or a state-run ACA exchange, there used to be a hard cutoff for whether you qualify for a premium tax credit. You didn’t qualify for a premium tax credit if your income was above 400% of the Federal Poverty Level (FPL). New laws removed the hard cutoff at 400% of FPL through 2025. See ACA Premium Subsidy Cliff Turns Into a Slope.

Now, how much credit you qualify for is determined by a sliding scale. The government says that based on your income, you are supposed to pay this percentage of your income toward a second lowest-cost Silver plan in your area. After you pay that amount, the government will take care of the rest.

If you pick a less expensive policy than the second lowest-cost Silver plan, you keep 100% of the savings, up to the point you get the policy for free. If you pick a more expensive policy than the second lowest-cost Silver plan, you pay 100% of the difference.

That sliding scale is called the Applicable Percentages Table. The applicable percentages have been lowered significantly through the end of 2025. It reduced the amount many people would otherwise pay toward their ACA health insurance.

Here are the applicable percentages for different income levels through 2025:

Income	2024 – 2025
< 133% FPL	0%
< 150% FPL	0%
< 200% FPL	0% – 2%
< 250% FPL	2% – 4%
< 300% FPL	4% – 6%
<= 400% FPL	6% – 8.5%
> 400% FPL	8.5%

Source: IRS Rev. Proc. 2024-35.

The percentage of income the government expects you to pay toward a second lowest-cost Silver plan depends on your income relative to the Federal Poverty Level. To calculate where your income falls relative to the Federal Poverty Level, please see Federal Poverty Levels (FPL) For Affordable Care Act (ACA).

If your income is low, they expect you to pay a low percentage of your low income. As your income goes higher, they expect you to pay a higher percentage of your higher income. The higher percentage applies not just to the additional income but to your entire income. A higher income times a higher percentage is much more than a lower income times a lower percentage.

For example, a household of two in the lower 48 states is expected to pay 7.06% of their income when their 2025 income is $70,000. If they increase their income to $80,000, they are expected to pay 8.28% of their income. The increase in their expected contribution toward ACA health insurance, and the corresponding decrease in their premium tax credit will be:

$80,000 * 8.28% – $70,000 * 7.06% = $1,682

This represents about 17% of the $10,000 increase in their income. For a married couple, the effect of paying 17% of the additional income toward ACA health insurance is greater than the effect of paying 12% toward their federal income tax. It makes the effective marginal tax rate on the additional $10,000 income 29%, not 12%.

Normally it’s a good idea to consider Roth conversion or harvesting tax gains in the 12% tax bracket, but those moves become much less attractive when you receive a premium subsidy for the ACA health insurance. For a helpful tool that can calculate this effect, please see Tax Calculator With ACA Health Insurance Subsidy.

For most people, retirement feels like a faraway dream—until it’s right around the corner. But the reality is, your post-retirement life depends heavily on the steps you take today. Whether you’re in your 20s, 30s, or even 40s, the earlier you begin retirement planning, the smoother and more secure your future will be.

And no—you don’t need to accumulate your entire retirement fund before you stop working. Retirement is not a one-time financial decision; it’s a journey that moves through phases. With the right approach, tools, and guidance, retirement planning becomes not just easy but empowering.

Let’s break it down.

Why Early Retirement Planning Matters

Starting early gives you the advantage of compounding—your money earns returns, and those returns generate their own returns over time.

Waiting too long, on the other hand, leads to rushed decisions, higher risk, and more pressure. Early planning allows you to:

• Accumulate wealth steadily
• Manage risk better
• Prepare for uncertainties
• Enjoy more financial freedom in retirement

When you plan early, you don’t just retire—you retire with confidence.

Set Clear Financial Goals

Goal setting  is the first step in retirement planning. Ask yourself:

• When do I want to retire?
• What kind of lifestyle do I want post-retirement?
• How much will that lifestyle cost annually?

Having clarity on these points allows you to estimate your retirement corpus. A well-defined goal gives your plan structure and direction.

At Fincart, our advisors help you define realistic retirement goals tailored to your income, risk appetite, and lifestyle expectations.

Build a Budget and Start Saving

Once your goals are set, it’s time to create a monthly budget that accommodates consistent savings. Most people struggle here—not because they don’t want to save, but because they lack visibility into where their money is going.

A simple habit of budgeting allows you to:

• Control spending
• Avoid unnecessary debt
• Allocate money towards retirement funds

A popular approach is the 50:30:20 rule—50% of your income goes to needs, 30% to wants, and 20% to savings/investments. Even if you can’t start with 20%, begin with what’s feasible. The key is consistency.

Choose the Right Investment Avenues

Saving is only half the game. To grow your money, you need to invest in the right instruments that align with your retirement timeline and risk tolerance.

Here’s where the accumulation phase begins—this is the period when you are actively earning and investing to build your retirement corpus.

Some common retirement-friendly investment options include:

• Mutual Funds: SIPs offer flexibility and long-term growth
• Public Provident Fund (PPF): Stable returns and tax benefits
• National Pension Scheme (NPS): Market-linked growth + annuity
• Equity investments: For long-term wealth creation
• Retirement-specific insurance plans
  

At Fincart, we help you choose a diversified investment mix so your portfolio balances growth with stability.

Plan for Life’s Uncertainties

Uncertainties—be it health issues, job loss, or economic downturns—can disrupt even the best-laid plans. Emergency funds, health insurance, and contingency planning are key elements of a solid retirement strategy.

Here’s what you need to ensure:

• 3–6 months of expenses in a liquid fund
• Adequate health cover for you and your dependents
• Term life insurance to protect your family’s financial future

Fincart helps you build these safety nets alongside your retirement plan, so you’re never caught off guard.

Tackle Debt Wisely

High-interest debt like credit cards or personal loans can eat into your savings and slow down your progress.

Here’s how to manage it:

• Pay off high-interest debt first
• Consolidate loans where possible
• Avoid taking new debt closer to retirement
• Channel bonuses and windfalls toward clearing liabilities

A debt-free life post-retirement gives you peace of mind and financial independence. Fincart’s advisors help you develop a practical debt-reduction plan alongside your investment strategy.

Review and Adjust Regularly

Your life isn’t static—and neither is your financial journey. Major life events like marriage, childbirth, job switches, or a medical emergency can shift your priorities and affect your savings plan.

That’s why periodic reviews are essential.

We recommend reviewing your retirement plan at least once a year to:

• Reassess your goals
• Adjust for inflation
• Realign asset allocation
• Track investment performance
• Optimize tax strategies

With Fincart, you gain access to dashboards and advisory services that simplify these reviews—ensuring your plan always stays on track.

Seek Expert Guidance

The world of retirement planning is filled with financial jargon, endless options, and unpredictable market behavior. For many, this creates confusion and leads to inaction.

But you don’t have to navigate it alone.

A trusted financial advisor helps you:

• Make informed investment choices
• Understand tax benefits and exemptions
• Create a tailored retirement strategy
• Stay emotionally detached during market volatility

At Fincart, our mission is to make retirement planning simple, smart, and personalized. Our expert wealth advisors work with you at every step—whether it’s setting up your first SIP or managing your post-retirement withdrawals.

The Two Phases of Retirement: Accumulation and Withdrawal

A common myth is that you need to save up your entire retirement fund before retiring. That’s not true. Retirement has two main phases:

1. Accumulation Phase

This is when you’re actively earning, saving, and investing. The focus is on growing your corpus through disciplined investing and wealth-building strategies.

2. Withdrawal Phase

This starts after retirement, when you begin drawing from your investments. The focus shifts to capital protection, tax efficiency, and steady income.

Bucket Strategy & SWP

During the withdrawal phase, a smart method like the bucket strategy—where your investments are divided into short-term (liquid), medium-term (moderate returns), and long-term (growth-oriented)—ensures you never run out of money too soon.

Another option is the Systematic Withdrawal Plan (SWP), where you withdraw a fixed amount regularly from mutual fund investments. This gives you predictable income, better tax benefits, and continued growth potential.

Retire Smart with Less Tax, More Growth

Tax planning plays a big role in retirement. Efficient use of instruments like NPS, ELSS, PPF, and senior citizen saving schemes can reduce your tax outgo, both in the accumulation and withdrawal phases.

Fincart helps you identify low-tax, high-growth strategies so you can retain more of your hard-earned money.

In Summary: Start Early, Retire Confident

Retirement planning isn’t just about numbers—it’s about designing the life you want to live after you stop working. The sooner you begin, the better equipped you’ll be to handle uncertainties, enjoy more options, and retire on your own terms.

At Fincart, we believe that retirement planning should be simple, personalized, and goal-driven. Whether you’re just starting out or already in your prime earning years, our team of experts will help you build a plan that gives you clarity today and confidence tomorrow.

Why Choose Fincart for Your Retirement Planning?

• Personalized advisory based on your financial goals
• Digital tools that simplify investment tracking
• Expert support from SEBI-registered advisors
• Goal-based planning for every life stage
• Smart tax strategies to maximize post-retirement income

Your Future Starts Today

The best time to start planning for retirement was yesterday. The next best time is now. Take the first step toward a confident and stress-free retirement journey with Fincart—your trusted retirement planner.

Plan smart. Retire happy. Live free—with Fincart.

A new client who never invested in mutual funds asked – what if a mutual fund company shuts down? This blog post explains the answer in simple terms.

Mutual Funds are one of the most trusted and regulated investment avenues in India. Lakhs of retail investors invest in mutual funds assuming that their money is professionally managed, diversified, and safe. But what happens if a mutual fund company (AMC – Asset Management Company) suddenly announces that it is closing down?

In this blog post, I will explain in simple and layman-friendly terms what happens in such scenarios, how SEBI protects your money, and what steps you should take as an investor. This post also includes insights from the latest SEBI regulations (till 2025) that are relevant in such a situation.

What to Do If a Mutual Fund Company Shuts Down Today?

AMC Closes – Does That Mean You Lose Your Money?

No. If a mutual fund company (AMC) closes or exits the business, your money is not lost. Your investments are protected by a robust regulatory framework enforced by SEBI (Securities and Exchange Board of India).

Here’s why:

• Mutual funds are structured as Trusts, not as part of the AMC’s own business.
• The Trustees of the mutual fund are independent and are duty-bound to protect investor interests.
• The Custodian (appointed SEBI-registered entity) holds the fund’s assets (stocks, bonds, etc.).
• The AMC is only a fund manager. Your invested money doesn’t sit with the AMC.

Why Might a Mutual Fund Company Shut Down?

An AMC might exit or shut down operations due to the following reasons:

1. Merger or Acquisition – AMC is acquired by another fund house.
2. Business Exit – Foreign or small AMCs may exit India due to low profitability.
3. Regulatory Action – SEBI may take action if an AMC violates rules.
4. Winding-up of Schemes – Specific schemes may be closed due to liquidity or risk issues.

Examples:

• Fidelity India AMC was acquired by L&T Mutual Fund in 2012.
• In 2020, Franklin Templeton closed 6 of its debt schemes due to market stress. The AMC did not shut down, but investors faced delays in getting money.

What SEBI Regulations Say – Protection Framework for Investors

SEBI has laid out a detailed framework under its SEBI (Mutual Funds) Regulations, 1996 and has been updating it frequently to enhance investor protection. Some key regulatory safeguards include:

1. Separate Trust Structure

Every mutual fund is established as a trust under the Indian Trusts Act, 1882. The AMC only manages the schemes on behalf of the trust. Investor money is held independently.

2. Role of Trustees

Per SEBI Regulation 18, trustees are legally responsible for:

• Ensuring compliance with SEBI regulations.
• Safeguarding the interests of investors.
• Appointing a new AMC if the existing one fails or exits.

3. Custodian of Assets

As per Regulation 26, the assets of the mutual fund schemes are held by an independent custodian, not the AMC. The custodian is SEBI-registered and ensures safety of all securities.

4. AMC Exit or Change of Control – SEBI Circular (July 2023)

According to SEBI’s circular dated 27th July 2023 on “Change in control of Asset Management Company”, the following steps are mandatory:

• AMC must take prior approval from SEBI before a change of control.
• Scheme unitholders must be informed 30 days in advance.
• Investors are given an option to exit without exit load.

5. Winding up of Mutual Fund Schemes – Regulation 39

Under SEBI rules:

• An AMC can only wind up a scheme after approval from the trustees and unitholders.
• In case of sudden closure (like Franklin Templeton in 2020), unitholder consent via voting is mandatory (SEBI amendment in 2021).
• The money is returned to investors after selling the underlying assets.

6. Transfer of Schemes to Another AMC – SEBI Approval Required

In case an AMC exits the business:

• Its schemes can be transferred to another SEBI-registered AMC only after SEBI’s due diligence.
• The new AMC must send detailed communication to all unitholders.
• SEBI oversees the entire transfer process.

What Happens When an AMC Shuts Down?

Let’s look at various possibilities and their outcomes:

Case 1: AMC Merges with Another AMC

• Your scheme is transferred to the new AMC.
• NAV, units, and investments remain unchanged.
• You receive official communication from both AMCs.
• No action is required from your side unless you wish to redeem.

Case 2: AMC Shuts Down & Schemes are Transferred

• Trustees appoint a new AMC (with SEBI approval).
• Schemes continue as-is under new management.
• Your investments are safe.

Case 3: Schemes are Wound Up

• Securities in the scheme are liquidated.
• Proceeds are returned to investors (usually in tranches).
• You receive money based on NAV on the date of winding-up.
• You may have to pay capital gains tax on the returns.

What Should You Do as an Investor?

1. Don’t Panic

Your investment is not at risk due to the AMC shutting down. The trust structure and SEBI’s regulations ensure full protection.

2. Wait for Official Communication

You will receive:

• An email or physical letter from the AMC or its RTA (like CAMS or KFintech).
• Scheme-wise impact note and your options.

3. Track Your Holdings

• Use MF Central, CAMS, or KFintech portals.
• Download your Consolidated Account Statement (CAS) for scheme status.

4. Avoid Immediate Redemption

Unless there’s a strong reason, avoid panic withdrawals:

• Exit load may apply.
• You may incur short-term capital gains tax.
• Markets may be volatile, affecting NAV.

5. Evaluate New AMC (If Transferred)

Check the reputation, track record, and investment style of the new AMC:

• Does it match your financial goals?
• Are you comfortable continuing?

If not, you can redeem it and reinvest it in another fund.

6. Understand Tax Implications

• If units are transferred (due to a merger): no capital gains tax.
• If money is returned due to the scheme closure: capital gains tax is applicable.

Practical Example – Franklin Templeton Case (2020) (Franklin Templeton India Closed 6 Debt Funds – What investors can do?)

• Franklin shut down 6 debt funds, citing liquidity stress.
• Initially, redemptions were frozen.
• Investors received money in multiple tranches over the next 2–3 years.
• The process was overseen by SEBI, trustees, and even the Supreme Court.

Conclusion – Closure of AMC or scheme and merger are part and parcel of the mutual fund industry. To avoid such complications, the only solution is to diversify your investment across AMCs. Let us say you started with one large cap fund of the ABC mutual fund company. Once you start to feel that the size of your investment in this particular fund is too big (how much big is personal comfort), then you can add one more large-cap fund of a different AMC. But make sure that adding more than two funds in each category is not required (irrespective of your investable amount).

Keeping houseplants alive can feel impossible. Maybe you forgot to water them. Maybe your apartment doesn’t get much sunlight. Or maybe you just don’t have the time or energy to fuss over a plant every day. The good news is, you don’t need a green thumb to enjoy the benefits of indoor plants. Some houseplants are so tough, they can survive almost anything you throw at them. If you want to add some green to your space without the stress, this list is for you. Here are ten houseplants that are almost impossible to kill—even if you’ve failed before.

1. Snake Plant

The snake plant, also called Sansevieria or mother-in-law’s tongue, is famous for its toughness. It can handle low light, dry air, and missed waterings. The thick, upright leaves store water, so you don’t need to water them often. In fact, overwatering is the main way people kill this plant. Just let the soil dry out between waterings. Snake plants also help clean the air, making them a smart choice for bedrooms and offices.

2. ZZ Plant

The ZZ plant (Zamioculcas zamiifolia) is almost indestructible. Its waxy, dark green leaves look good even if you forget about it for weeks. It tolerates low light and only needs water when the soil is dry. The ZZ plant is also resistant to pests and disease. If you want a plant that thrives on neglect, this is it. Just keep it out of direct sunlight, which can scorch the leaves.

3. Pothos

Pothos is a classic beginner plant. Its trailing vines and heart-shaped leaves grow fast, even in low light. Pothos can survive in water or soil, and it bounces back quickly if you forget to water it. You can trim the vines to keep them tidy or let them trail for a wild look. Pothos is also known for filtering toxins from the air, making it a healthy addition to your home.

4. Spider Plant

Spider plants are easy to grow and hard to kill. They like bright, indirect light, but can handle low light too. Water them when the soil feels dry, and they’ll reward you with long, arching leaves and baby “spiderettes” that you can replant. Spider plants are non-toxic to pets, so they’re a safe choice if you have cats or dogs. They also help remove pollutants from indoor air.

5. Peace Lily

Peace lilies are forgiving and beautiful. They can survive in low light and only need water about once a week. The glossy leaves will droop when the plant is thirsty, so it’s easy to know when to water. Peace lilies also produce white flowers that last for weeks. They’re great for improving air quality, but keep them away from pets, as the leaves can be toxic if eaten.

6. Cast Iron Plant

The cast iron plant (Aspidistra elatior) lives up to its name. It can handle low light, temperature changes, and irregular watering. The dark green leaves grow slowly but steadily, and the plant rarely has problems with pests. If you want a plant you can almost forget about, the cast iron plant is a solid pick. It’s perfect for shady corners where other plants struggle.

7. Aloe Vera

Aloe vera is more than just a tough plant—it’s useful too. The thick, spiky leaves contain a gel that can soothe burns and cuts. Aloe likes bright, indirect light and needs water only when the soil is dry. Too much water can cause root rot, so it’s better to underwater than overwater. Aloe vera is a good choice for sunny windowsills and people who want a low-maintenance, practical plant.

8. Jade Plant

Jade plants are succulents that can live for decades with minimal care. They need bright light and occasional watering. Let the soil dry out between waterings to prevent root rot. Jade plants grow slowly and can be pruned to keep their shape. They’re also said to bring good luck, which can’t hurt. If you want a tough and attractive plant, jade is a great option.

9. Philodendron

Philodendrons are popular for their heart-shaped leaves and easy-going nature. They adapt to a range of light conditions, from low to bright indirect light. Water when the top inch of soil is dry. Philodendrons are forgiving if you forget to water now and then. They also grow well in hanging baskets or on shelves, adding a lush look to any room.

10. Rubber Plant

The rubber plant (Ficus elastica) is sturdy and striking. Its large, glossy leaves make a bold statement. Rubber plants like bright, indirect light, but can handle lower light too. Water the soil when it is dry to the touch. They can grow tall over time, but you can prune them to keep them manageable. Rubber plants are also known for their air-purifying abilities.

Green Without the Guilt

You don’t need to be a plant expert to enjoy houseplants. The ten houseplants listed here are tough enough for almost anyone. They can handle missed waterings, low light, and a little neglect. Adding greenery to your home doesn’t have to be stressful or expensive. With these easy-care options, you can enjoy the benefits of plants—like cleaner air and a more relaxing space—without the worry. Try one or two and see how simple it can be to keep something alive.

What’s your experience with “unkillable” houseplants? Share your stories or tips in the comments.

Read More

The Benefits of Houseplants

How to Create a Workspace That Feels Premium Without Overspending

If you’d like to transition to self-employment, here’s what you should know about how much it costs to start a business, why it’s such an important issue to consider, and how to save up the funds you need.

Why Startup Costs Matter

Startup costs are a critical consideration for would-be business owners and should factor heavily into your early financial planning.

You need to know how much it costs to start a business to determine whether you can realistically do so. Some business models require more than you can afford, even with external financing, making them unattainable.

👉 Learn more: Our guide on S.M.A.R.T. financial goals offers a step-by-step approach to planning your finances effectively, illustrated with examples.

Others may be theoretically within your reach but require more capital than you’re willing to risk. After all, roughly 20% of businesses fail within their first two years. That goes up to around 45% over the first five years and about 65% over the first ten^[2].

You’ll also need a fairly accurate estimate of your startup costs to effectively prepare for the transition to self-employment. You want to be confident that you can cover your business expenses for a period without much revenue.

Typically, you’ll use that estimate to determine how much money you need to save up or gain access to through a credit account before transitioning to self-employment.

If they’re substantial enough, your startup costs can even impact your business’s finances over the long term. For example, if you get a 60-month business loan to purchase essential equipment, your profits will be lower for years due to the burden of servicing your debt.

For all of these reasons and more, knowing your business’s startup costs is essential for making strategic business decisions, especially in the earlier days of your company.

🤔 Learn more: Torn between employment and entrepreneurship? Our post on whether to get a job or start a business can help you decide.

How to Estimate Your Startup Costs

The cost of starting a business can vary wildly depending on your business model. For example, you can begin offering many services without paying anything, but opening a manufacturing company is prohibitively expensive for the average consumer.

As a result, the average cost of starting a business isn’t a practical measurement for gauging your own startup costs, even if you could calculate it. Instead, find a way to estimate the costs for your unique circumstances.

Let’s explore some strategies you can use.

Study Comparable Businesses

One of the best ways to estimate your startup costs is to study the expenses of existing operations like yours. While small businesses generally don’t publish their financial data like public companies do, you can still find information on them.

Many small business owners who have achieved some success enjoy sharing their insights with those interested in following a similar path. As a result, you can often find interviews, podcasts, or articles online in which they discuss the details of their experiences.

Alternatively, you can contact experts directly and ask for their advice yourself. They might participate in and be willing to answer questions in forums and social media, or you can attend networking events and attempt to connect with them in person.

Fortunately, there are countless YouTube channels where flippers share the details of specific projects they’ve completed from start to finish, including their numbers. There are also real estate meetups in virtually every city where you can mingle with other real estate investors, ask them questions, and look for a mentor.

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Build a Budget From Scratch

It’s generally more efficient to estimate your startup costs using someone else’s historical expenses. However, the information isn’t always readily accessible, and finding it can be more trouble than it’s worth.

In that case, you can always create a budget for your company’s startup costs from scratch. It might not be as accurate, but you can easily factor the unknown into your budget by giving yourself a healthy contingency fund.

Start by listing the expenses you’re sure you’ll have to pay to open your business. That’ll serve as the foundation of your budget. Then, list all the costs you anticipate but aren’t entirely sure about.

💰 Learn more: Explore 5 practical ways to get money to start a business and kickstart your entrepreneurial journey today.

Finally, inform your estimates for each cost with market research. Shop around with different vendors and get actual quotes so your numbers are as realistic as possible.

Generally, the safest strategy is to use your most conservative budget. That would mean assuming your most pessimistic estimates are accurate and factoring in a cushion to account for your uncertainties.

💡 Free Resource: Monthly Budget Spreadsheet Template (Excel & Google Sheets)

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Common Costs of Starting a Business

Expenses vary significantly between business models, but some are more common than others. If you have to build a budget from scratch, here are some costs you should probably include in your projections, no matter what product or service you offer.

Administration

If you want to do business as a legal entity other than a sole proprietor, you generally have to pay fees to a governing agency in your state. In addition, you’ll probably want to hire someone to draft documents like operating agreements or articles of incorporation.

Similarly, some businesses require that you purchase a license to offer whatever products or services you sell. Operate without them, and you risk incurring penalties or having your business activities shut down.

Finally, you’ll usually need to pay for bookkeeping services to keep your financial records in order. Depending on your needs, that can be anything from a software subscription to a professional service provider.

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Marketing

Client acquisition is essential for every business, from real estate agencies to e-commerce websites. Not all forms of marketing cost money, but many of the most effective ones do, especially those that work for new companies.

When drafting your initial budget, it’s a good idea to leave some extra room in the marketing category since you can’t predict whether your early strategies will be successful. You may have to experiment until you find something that works for you, which will cost more money.

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Materials

If you want to sell something tangible, you’ll inevitably have to pay for materials to create your final offering. That applies whether you’re assembling your product from scratch or merely refurbishing previously used goods.

Material costs are often one of the most significant expenses for product-centered businesses and have a large impact on profitability. You want to ensure that your raw material costs are roughly equal to or lower than your peers’ to compete effectively.

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Labor

Small businesses often start as one-person operations, which can work well for many self-employed people. However, you must incur labor costs eventually if you want to scale things up.

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Overhead

Whatever your business is, you’ll often need space to conduct certain aspects of your operation. That could be an office to meet with clients, a storage unit to house your inventory, or even a factory to manufacture your products.

Assuming you can’t or don’t want to run your business out of your personal residence, you’ll need to lease or buy a separate space. That means taking on monthly rent or financing payments and utility costs.

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Equipment

Businesses often need specialized equipment to offer whatever product or service they sell. That could be anything from a laptop computer for a freelance writer to a large commercial vehicle for a long-haul trucker.

Many of the most expensive business models are costly because the equipment they involve is expensive. If you pick a business that doesn’t require you to purchase any significant fixed assets, there’s a good chance you’ll have affordable startup costs.

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Insurance

There are many types of business insurance, and it’s likely that at least one will be beneficial to you, no matter what your business is. Some policies may actually be required, such as workers’ compensation insurance when you have employees.

Some of the other most common types of business insurance include general liability insurance, commercial property insurance, and business income insurance. Many self-employed people buy a business owner’s policy, which combines all three.

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Professional Services

Labor expenses generally refer to the cost of hiring someone for ongoing help with your primary operation. In contrast, professional service fees go to external parties you contract to manage a secondary aspect of your business that’s outside your wheelhouse.

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Taxes

Last but certainly not least, every business has to pay taxes on their profits. In addition to income taxes, that also includes a flat 15.3% self-employment tax. It’s the combination of the Social Security and Medicare taxes that employees get to split with their employees.

In most cases, it’s best to hire a CPA for assistance with tax planning and preparation. You might be able to get away without one if your business is relatively simple, but as it grows in size and complexity, a CPA becomes increasingly valuable.

📗 Learn More: Our latest post unveils 8 powerful ways how to save on taxes, helping you keep more money in your pocket.

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How to Prepare Your Finances for Starting a Business

How much does it cost to start a business? If you’re asking that question, you already understand the importance of anticipating and preparing for your startup costs.

Starting a business that requires upfront and ongoing costs is inherently riskier than working for someone else. If your company fails or goes without revenue, you stand to lose your investment and source of income while having lingering business bills to pay.

As a result, it’s essential that you prepare your finances for self-employment by building a healthy runway of cash. The process isn’t too different from saving up an emergency fund to protect yourself as an employee.

Generally, this involves saving enough cash to weather the worst-case scenario. Just like it does for employees, that means having the funds to pay your bills during an extended period of little to no income.

However, there are several differences that mean your fund will probably need to be larger than the average employee’s. They include the following:

• Longer timeline: Most employees aim to have three to six months of expenses in their emergency fund because that’s the length of the average job search. However, it can take much longer for your business to become profitable.
• Higher costs: When an employee loses their job, they only need to be able to support their household. When business owners go without revenue, they must also cover their company’s recurring costs.
• No unemployment: When an employee loses their job, they can often fall back on unemployment insurance to offset their cost of living. Unfortunately, business owners generally don’t have access to the same benefits.

You can reduce your need for a cash runway by maintaining a second source of income while you get started, but that means you’ll have less time and energy to devote to your new business. There are pros and cons to both approaches, so consider carefully.

📗 Learn More: How to Start a Business While Working Full-time (And Replace Your Job)

Apple Bank CD rates are very competitive. How much interest you can earn depends on the term lengths and deposits. One thing for sure is that the longer the term, the more money you’ll make over time. For example a 15-month Apple Bank CD rate is at 4.25% APY.

Of note, if you’re looking to earn more money on your investment, it might make sense to consider working with a financial advisor.

See the best Apple Bank CD rates that are available for you below:

Term	Interest Rate	APY
3 month	3.24%	3.30%
6 month	3.44%	3.50%
9 month	3.68%	3.75%
1 year	3.92%	4.00%
15-month	4.16%	4.25%
18-month	3.44%	3.50%
2-year	3.44%	3.50%
3-year	3.44%	3.50%
4-year	3.44%	3.50%
5-year	3.44%	3.50%

Apple Bank CD Rates: An Overview

Apple Bank CD rates are the most competitive out there. They offer higher rates than most Bank CDs. And you will certainly earn considerably more interest than a regular savings account or money market fund. While Apple Bank offer higher CD rates, it requires a minimum of $1,000.  Apple Bank is based in New York City. It has several physical branches and you are able to receive customer service in person. You can open a CD for a 3-month term all the way to a 5-year term. The highest rate you can receive right now is 4.25% which represents the 15-month term. Other rates are still competitive than what most brick and mortar banks are offering.

What is a certificate of deposit (CD)?

CDs are certificates that banks or credit unions sell to you. Banks issue them to you for a specific dollar amount for a specific length of time. The time period could be anywhere from 1, 6, 12 or 24 months to several years. The bank pays you some interest. You get your full principal back plus interest you earn once the CD matures or “comes due.” If you want your money back before it matures, you can withdraw it.

But you will get hit with a penalty for early withdrawal. However, there are some banks, like CIT Bank, that offer CDs with no penalty. Certificate of deposits just like bank savings accounts are very safe. That is because they are FDIC insured for up to $250,000. So, if you’re looking for safety for your cash and competitive yield, CDs are some of the best short term investments to consider.

What is the difference between a bank CD and a brokerage CD?

Two types of certificates of deposits exist. One is Bank CD; the other is brokered CD. Apple Bank issues bank CDs. Others, such as Vanguard, offer “brokered CDs.” Brokered CDs are issued by banks. They are sold in bulk through brokerage firms such as Vanguard and Fidelity.

Bank CDs and brokered CDs are FDIC insured up to $250,000. Apple Bank CD rates are usually competitive, and they tend to provide higher yields than other bank CDs. The longer term CDs such as the Apple Bank 15-month CD offer high rates.

Are Apple Bank CDs right for you?

Given that Apple Bank CD rates are very competitive, they may be a good choice for you. So, you may want to consider them if:

• You’re investing for a short-term goal, such as buying a house, in the next few years.
• You are looking for peace of mind knowing that your money is insured by the FDIC.
• You’re looking for an investment that provide higher yields than banks savings accounts;
• You want a low-risk place to keep your cash.

What are the Apple Bank CD rates?

Apple Bank offers CDs ranging from 3 months to 5 years. As you can see in the table above, the longer the term of the CD, does not necessarily mean the higher the rate. For example, an Apple Bank CD for a 15-month term offers a 4.25% yield. Whereas a Apple Bank CD’s rate for a 5-year term is only 3.50%. You can buy Apple Bank CDs commission free and you can sell them commission free before they mature.

Apple Bank 5-Year CD Rates

The applicable rate for a 5-Year Apple Bank CD is currently 3.50%. And it requires a minimum deposit of $1,000. This is the longest Apple Bank CD term out there. And its interest rate exceeds most CD rates you’d get from banks. Learn more about this product  and apply on Apple Bank’s secure website.

Apple Bank 4-Year CD Rates

This 4-year Apple Bank CD also requires a minimum deposit of $1,000.  This CD’s yield is the same as the Apple Bank 5-year CD. Also, it’s higher than most bank CDs. The yield is currently is 3.50%.

Apple Bank 3-Year CD Rates

The applicable yield for a 3-Year Apple Bank CD is still very competitive. It’s 3.50% and requires a $1,000 deposit.

Apple Bank 2-Year CD Rates

The rate for a 2-Year Apple Bank CD is 3.50% and a minimum deposit of $1,000 is required.

Apple Bank 18-Month CD Rate

For a 18-Month Apple Bank CD, the yield is 3.50%. The minimum deposit is $1,000.

Apple Bank 15-Month CD Rates

For a 15-Month Apple Bank CD, the yield is 4.25%. This is the highest rate of all the CDs offered. The minimum deposit is still relatively low: $1,000.

Apple Bank 1-Year CD Rates

The yield for a 1-Year Apple Bank CD is 4.00% and a minimum deposit of $10,000 is required. 

Apple Bank 9-Month CD Rate

The applicable yield for a 9-Month Apple Bank CD is still very competitive. It’s 3.75% and requires a $1,000 deposit.

Apple Bank 6-Month CD Rates

The yield for a 6-month Apple Bank CD is currently 3.50%. Apple Bank CD requires a $1,000 minimum deposit.

Apple Bank 3-Month CD Rate

For a 3-Month Apple Bank CD, the yield is 3.30%. The minimum deposit is $1,000.

Alternative to Apple Bank CDs: Best Vanguard Mutual Funds:

If Apple Bank CDs do not do it for you, or you’re looking to get more return on your money, then try to invest in the best Vanguard mutual funds out there. That way your money is still safe and you get more money.

Mutual funds are some of the best ways to invest your money. One thing to be aware is that mutual funds invest in stocks and bongs. These securities tend to be volatile. Therefore, you might lose some or most of your investment if the market goes down. So, beginner investors wishing to invest in these Vanguard Funds should also consider learning how the stock market works.

Bottom line

Apple Bank CDs might be a good choice for you if you want to avoid risky investments and you are saving your money for a short-term goal such as going on a vacation. Indeed, Apple Bank CD rates are better than bank savings accounts and money market funds. But the money is only available after the CD “matures.” On the other hand, if access to your money at anytime is a priority, check out the best Vanguard Mutual Funds.

Tips for Maximizing Your Savings

If you have questions beyond Apple Bank CD rates, you can talk to a financial advisor who can review your finances and help you reach your goals. Find one who meets your needs with SmartAsset’s free financial advisor matching service. You answer a few questions and they match you with up to three financial advisors in your area. So, if you want help developing a plan to reach your financial goals, get started now.