Category: Cryptocurrency news

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Income passive investor vs passive income

“Passive income investor” and “passive income” refer to related but distinct concepts:

  1. Passive Income Investor: This term typically refers to someone who invests in assets or ventures with the goal of generating passive income. These investors may put money into dividend-paying stocks, rental properties, bonds, or other income-generating assets. The emphasis here is on the investment aspect—the investor is actively selecting and managing investments to generate passive income over time.
  2. Passive Income: Passive income, on the other hand, is any income received with little to no effort required to maintain it. This income can come from various sources, including investments, rental properties, royalties from intellectual property, affiliate marketing, or any business activities in which the individual is not materially involved on a day-to-day basis. Passive income allows individuals to earn money even when they’re not actively working, providing financial flexibility and potentially freeing up time for other pursuits.

In summary, a passive income investor is someone who actively invests in assets with the intention of generating passive income, while passive income refers to the income itself, regardless of how it’s earned.

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Bitcoin is good as long as it stays above $49,000: analyst

Despite Bitcoin’s 13% drop last week, which saw it break below the psychological $60,000 level and fall 20% from its all-time highs, one X analyst remains resolute.

According to the weekly chart, the trader maintains a bullish outlook and says that the coin will shake off weakness in the next session. This lines up with the bulls for most of Q4 2023 and Q1 2024.

Bitcoin falls and loses $60,000

Bitcoin is under intense sell-off pressure, fighting the onslaught of sellers. Earlier today, BTC broke below $60,000, melting below its April 2024 lows.

This dump confirmed the bears from April 13, indicating a possible start of a bearish formation that could see BTC lose ground, paring February and March 2024 gains.

However, the analyst claims that the bullish trend will continue as long as Bitcoin stays above the $49,000-$52,000 support zone, absorbing all the selling pressure. This evaluation, based on the candle arrangement, can serve as collateral for BTC holders. The trader claims that, despite the sell-off, panic at this time is not justified.

Referring to the Elliott Wave Principle, a technical analysis indicator, the analyst highlights that the currency is simply on pause. For those with a more aggressive trading strategy, the decline, ideally towards the upper support zone, could represent an opportunity to buy dips in anticipation of Wave 5.

Currently, the analyst notes that Bitcoin is in Wave 4, a stage that will take approximately the same time as Wave 2. Prices then fell after a brief rally, peaking in May 2023. However, the Prices rose in Wave 3, pushing prices below $30,000. . to new all-time highs, reaching $73,800.

The decline from all-time highs in spot rates, if the Elliot wave theory is analyzed, could indicate that prices are in the fourth wave before the eventual rise, which will end in the fifth wave.

What is next? Will BTC surpass $100,000 in the fifth wave?

Even so, it is still unknown when BTC will go from bottom to top. As things stand, the analyst said traders should watch two exponential moving averages (EMAs) of the 21 and 50 periods. A retest of these dynamic levels could offer support, preparing traders to buy dips in anticipation of the Wave 5 final.

However, the analyst did not define the next possible target even on the chart. Still, if Wave 3 is roughly the same duration as Wave 5, Bitcoin will have a strong chance of breaking above $100,000 after the current volatile price action ends.

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Usa pension plan vs 401k

Pension plans and 401(k) plans are both retirement savings vehicles in the United States, but they operate quite differently. Here’s a comparison between the two:

Pension Plan:

  1. Defined Benefit Plan: In a pension plan, the employer typically contributes to a pool of funds set aside for the employee’s future benefit. The benefit is typically based on a formula that considers factors such as the employee’s salary history and years of service.
  2. Guaranteed Income: Pension plans provide a guaranteed income stream in retirement, usually in the form of monthly payments for life. The amount of the payment is determined by the plan’s formula and is not directly impacted by investment performance.
  3. Employer Responsibility: The employer bears the investment risk and is responsible for managing the pension fund to ensure it can meet its future obligations to retirees.
  4. Less Common Today: Traditional pension plans have become less common in the private sector over the years, with many companies transitioning to defined contribution plans like 401(k)s due to the administrative costs and investment risks associated with pension plans.

401(k) Plan:

  1. Defined Contribution Plan: A 401(k) plan is a type of defined contribution plan where employees contribute a portion of their pre-tax income to their individual accounts. Employers may also make contributions, either by matching a portion of the employee’s contributions or through profit-sharing contributions.
  2. Individual Accounts: Each employee has their own 401(k) account, and the value of the account depends on contributions made by the employee, employer, and investment returns.
  3. Investment Choices: Participants in a 401(k) plan typically have a range of investment options to choose from, such as mutual funds, index funds, and target-date funds. The investment performance directly impacts the value of the account.
  4. Portability: 401(k) plans are more portable than pension plans because employees can take their account balances with them when they change jobs. They may also have the option to roll over their 401(k) balances into an Individual Retirement Account (IRA) upon leaving an employer.

Comparison:

  • Risk: Pension plans shift the investment risk from the employee to the employer, while 401(k) plans place more responsibility on the employee to manage their investments and bear the investment risk.
  • Income Stream: Pension plans provide a guaranteed income stream in retirement, whereas the income from a 401(k) plan depends on factors such as contributions, investment performance, and withdrawal decisions.
  • Portability: 401(k) plans offer more portability and flexibility for employees who change jobs frequently, whereas pension benefits are typically tied to a specific employer.
  • Employer Contributions: While both types of plans may include employer contributions, the structure of these contributions differs. In a pension plan, the employer contributes to a pool of funds for all employees, while in a 401(k) plan, employer contributions are typically made to individual employee accounts.

Overall, both pension plans and 401(k) plans serve as important tools for retirement savings, but they have different structures and implications for employees and employers.

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What is the difference between FSA and HSA?

An FSA (Flexible Spending Account) and an HSA (Health Savings Account) are both types of accounts that allow individuals to save money for medical expenses, but they have key differences:

  1. Eligibility:
    • FSA: Typically offered through an employer-sponsored benefits plan, FSAs are available to employees who work for companies that offer them. They may also be available through certain government programs.
    • HSA: Available to individuals who have a high-deductible health insurance plan (HDHP). Not all HDHPs offer HSAs, but individuals can often open them independently.
  2. Ownership and Portability:
    • FSA: Usually owned by the employer, meaning that if you leave your job, you might lose any unused funds in the account. However, some FSAs allow for limited rollover or grace periods.
    • HSA: Owned by the individual, allowing them to keep the account even if they change jobs or health insurance plans.
  3. Contributions:
    • FSA: Contributions are typically set by the employee before the plan year begins and are deducted from their paycheck throughout the year. There is usually an annual contribution limit set by the IRS.
    • HSA: Contributions can be made by both the individual and their employer (if applicable). There are annual contribution limits set by the IRS, and individuals can often make contributions themselves or have them deducted from their paycheck.
  4. Tax Treatment:
    • FSA: Contributions are made with pre-tax dollars, reducing the individual’s taxable income. Withdrawals used for qualified medical expenses are also tax-free.
    • HSA: Contributions are made with pre-tax dollars (or are tax-deductible if made outside of payroll deductions), reducing taxable income. Withdrawals used for qualified medical expenses are tax-free, and any interest or investment gains in the account are tax-free as well.
  5. Rollover/Forfeiture:
    • FSA: Typically, funds in an FSA must be used by the end of the plan year, although some plans offer a grace period or allow for limited rollover of funds.
    • HSA: Funds roll over from year to year and can accumulate over time. There is no “use it or lose it” provision for HSAs.

In summary, while both FSAs and HSAs offer tax advantages for medical expenses, HSAs provide more flexibility, ownership, and long-term savings potential compared to FSAs. However, HSAs are only available to individuals with high-deductible health insurance plans.

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How to start saving for retirement at 45 in Canada

Starting to save for retirement at 45 in Canada is still feasible, but it requires a proactive approach and potentially more aggressive saving and investing strategies compared to starting earlier. Here are steps you can take to begin saving for retirement at this stage:

  1. Assess Your Current Financial Situation: Take stock of your current financial situation, including income, expenses, assets, and liabilities. Understanding where you stand financially will help you determine how much you can afford to save for retirement.
  2. Set Clear Retirement Goals: Determine your retirement goals, including the age at which you’d like to retire and the lifestyle you envision during retirement. Knowing your goals will help you calculate how much you need to save.
  3. Create a Budget: Develop a budget that prioritizes saving for retirement. Allocate a portion of your income specifically for retirement savings. Look for areas where you can cut expenses or increase income to boost your retirement contributions.
  4. Maximize Retirement Accounts: Take advantage of tax-advantaged retirement accounts such as Registered Retirement Savings Plans (RRSPs) and Tax-Free Savings Accounts (TFSAs). Both accounts offer tax benefits that can help your savings grow faster. Consider contributing the maximum allowable amount to these accounts each year.
  5. Catch-Up Contributions: In Canada, individuals aged 50 and over are eligible to make catch-up contributions to their RRSPs. These contributions allow you to contribute more than the regular annual limit, helping you accelerate your retirement savings.
  6. Invest Wisely: Choose investments that align with your risk tolerance, time horizon, and retirement goals. While you may have a shorter time horizon compared to someone starting to save for retirement in their 20s or 30s, you still have time to benefit from long-term investment growth. Consider a diversified portfolio that includes a mix of stocks, bonds, and other assets.
  7. Consider Additional Income Streams: Explore opportunities to increase your income, such as taking on a side job or freelancing. Additional income can provide extra funds that you can allocate towards retirement savings.
  8. Seek Professional Advice: Consider consulting with a financial advisor who can help you develop a personalized retirement savings plan based on your goals, risk tolerance, and financial situation. An advisor can also provide guidance on investment strategies and tax planning.
  9. Stay Flexible: Be prepared to adjust your retirement savings plan as needed. Life circumstances and financial markets can change, so periodically review your plan and make adjustments as necessary.

Starting to save for retirement at 45 may require more aggressive saving and investing strategies, but it’s still possible to build a comfortable retirement nest egg with careful planning and disciplined saving habits.