Sleep Deprivation – And Its Effects

Obviously, the potential downside for severe sleep deprivation is disastrous. But sleep deprivation hurts us in a myriad of other ways too – some more subtle than others. Lack of sleep can lead to the following problems:

  •  Decreased productivity at work.
  •  Increase in workplace errors.
  •  Workplace accidents and injuries.
  •  Increased irritability.
  •  Decreased energy.
  •  Depression.
  •  Decreased sex drive.
  •  Memory problems.
  •  Concentration problems.
  •  Difficulty managing financial affairs.

The problem is widespread. Most of us need about eight hours of sleep per 24-hour period. But more than 35% reported getting less than seven hours per night. Nearly half of Americans reported snoring – a major indicator of sleep apnea, which can cause sleep deprivation.

Nearly 40% of Americans reported falling asleep unintentionally during the day, at least once during the previous month. About one in 20, or 4.7% report falling asleep while driving – a problem that the U.S. Department of Transportation estimates to have caused 40,000 injuries and 1,550 deaths in traffic accidents each year.

Tips for Managing Sleep Issues

There are some easy things you can do to help improve your sleep patterns. According to the National Sleep Foundation:

1. Go to bed at the same time each day.

2. Wake up at the same time each day.

3. Keep up the habit, even on weekends.

4. Establish a relaxing bed-time routine.

5. Invest in a good mattress and good pillows.

6. Get computers, TV sets, work materials and other distractions out of the bedroom, which should be used only for sleep and intimacy.

7. Don’t eat a big meal or heavy snack right before bedtime. (Your heart will thank you for this too!)

8. Exercise.

9. Avoid caffeine near bedtime.

Severe, chronic sleep difficulty is a medical issue. If you are routinely getting too little sleep, and it affects your personal and professional life, talk to your doctor about your options. He or she may refer you to a sleep specialist.

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Investing – Step #5: Learn The Costs Of Investing

The ultimate goal of investing is to let your money work for you and provide you with stable, passive income.

But it costs money to invest money.

This month, take the time to learn the dollars and cents of investing. Of course, you knew that investing was going to mean coming up with the actual money you’re putting into the market, which always holds the possibility of being lost forever. But did you know there are going to be various fees, commissions, and taxes you’ll have to pay, too?

Let’s take a peek at an actual investment to illustrate this. The company and amounts have been changed, but they’ve been accurately scaled down to size.

Suppose that, on Aug. 13, 2015, a share of stock in Apple closed at $43.26. During the next few months,
Apple issues four dividends of $0.55 per share. On Aug. 25. 2016, a share of stock in Apple closed at $51.23.

Let’s say you chose to invest $1,000 in Apple on Aug. 13, 2015 and you withdrew it on Aug. 25, 2016.

At the time of your investment, $1,000 would buy you 23.25 shares of Apple. Over the year, you would have received $51.16 in dividend payouts. When you withdrew from the company a bit over a year after your initial investment, you’d sell that stock for $1,191.09.

It seems like your gain from this stock is $242.25, broken down into $51.16 in dividends and another $191.09 from selling the stock. Simple, right?

The problem is, though, you haven’t exactly earned that much. Here’s where the costs of investments come into play.

First, the dividends would be subject to income tax. In this case, the dividends are considered qualified dividends, and would therefore be taxed at a rate of 15% by the federal government and possibly more by state and local sources. As a result, $7.67 of that dividend gain is eaten up by these taxes.

Second, you’re going to have to pay your broker for the cost of buying and selling the stock. Let’s say, hypothetically, you’ve used an online discount stock brokerage firm. The buy and the sell would each cost $9.99. That’s another $19.98 dropped from your gain – although this fee is tax deductible.

Third, the gain on the sale would be a long-term capital gain, so 15% of that gain goes to the federal government. Since your gain was $191.09, you’d be paying an additional $28.66 in taxes on the sale.

In total, your expenses for your gain add up to $56.31. Just like that, nearly 30% of your gain is gone!

Even if your investment is a loser, you’re still paying the brokerage fees and will earn less in dividends.

The moral of the story? Investing costs. You’re taxed if you gain, and you’ll get hit with brokerage fees whether you win or lose.

Some forms of investing have lower costs than others. If you invest directly with an investing house, you can bypass the investing fees and only pay the taxes on your gains. However, you’re limited to the offerings that the investing house has available, and you’ll be subject to their often inflexible minimums for investing.

You could also simply invest in a money market account or other savings option at UCCU. Your returns will come with fewer or no costs. Plus, your balance isn’t at risk. Yes, you might “lose” some gains by only having the cash in a savings account, but your money is earning a steady return. If you invest elsewhere, it’s possible that the costs, the fees and the taxes can easily eat up a substantial amount of whatever you gain or make an already painful loss even harder.

It’s important to note that the bigger your investment, the smaller the impact such costs have. At the $1,000 level, the investment fees in the above scenario typically eat up about 2% of your balance. If you’re investing $10,000, the fees will only eat up 0.2% of your balance, and if you invest $100,000, the fees eat up only 0.02% of your balance.

Thus, as a beginning investor, it’s crucial to know the total cost of ownership of an investment as you consider it. Even a small fee can significantly lower your total return when you’re starting out with small investments.

That’s why it’s best to take it slowly at first and continue learning about the market and stocks you’re interested in. Know exactly what you’re going to invest in – and what all of the costs of that investment are – before you put down any of your money. After working out the math, you may find you’d rather wait until you have a substantial amount saved up for investing, as these fees don’t make such a big dent when the gains are larger.

So, before you make that first investment, learn the costs and be sure it’s worth the price!

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6 Common Tax Mistakes To Avoid

It’s that time of year again! Get ready to break out the calculator and pencils; dig out the enormous pile of receipts, tax forms, and pay stubs, and get to work. Whether you choose to go it alone, use a tax-prep computer program or hand it all over to an accountant, start with checking out our handy list of common mistakes people make on their tax returns.

1.) Faulty math

One of the most common errors on filed taxes is math mistakes. A small miscalculation can throw off all your numbers and get you into trouble with the IRS. However you choose to prepare your taxes, be sure to triple-check the math before filing.

2.) Name changes and misspellings

When preparing your taxes, you’re thinking about numbers, but don’t forget to pay attention to everything else on your form! If you use a name that’s different than the one the IRS has on file for your Social Security number, or even if you spell it wrong, that can mean trouble for you and your taxes. If you’ve recently changed your legal name, be sure to let the Social Security Administration know.

3.) Omitting extra income

Many people neglect to include secondary sources of income on their tax forms. This may include freelance work and any other side work they may have done throughout the year. If you’ve taken any side jobs in 2017, fill out a 1099-MISC and file it along with your taxes.

4.) Deducting funds donated to charity

Charity laws are complicated! First, only donations given to an organization with a tax-exempt status can be deducted from your taxes. Second, if you’ve donated food items or used clothing, they had to have been in decent shape to be eligible for a write-off. Finally, calculate the value of your non-monetary donations according to what they would be worth if you’d sell them now. Don’t forget to include those charity tax receipts when you file!

5.) Using the most recent tax laws

The current administration has made some major changes to the tax code. While most of these changes won’t take effect until you file your first taxes for 2018, there are some changes that are effective for this year, including the following:

  • The standard deduction increased to $6,350 for single, $9,350 for head of household, and $12,700 for married filing jointly.
  • The maximum earned income tax credit increased to $6,318.
  • The maximum income limit for the EITC increased to $53,930.
  • The foreign earned income deduction increased to $102,100.
  • Annual deductible amounts for Health Savings Accounts increased for individuals only, to $3,400.

6.) Signing your forms

If you’re filing through the USPS, be sure to put your signature wherever necessary, and get a mailing receipt. If filing online, you can use a PIN instead. Most places that require a signature will need to be dated as well.

Check your forms for errors before submitting and file with confidence!

SOURCES:

https://criticalfinancial.com/5-common-tax-mistakes-people-make/

https://gobankingrates.com/taxes/know-before-file-tax-breaks/amp/

https://blog.taxact.com/common-tax-mistakes/amp/

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