FINANCIAL HOUSEKEEPING | Adjust your W-4 form
If you are still recovering from tax season or want to make adjustments so that you either don’t owe too much in taxes next year or avoid giving Uncle Sam an interest-free loan, consider changing your W-4 form.
Most people follow the basic instructions or take educated guesses when filling out this form – which they typically do when starting a job – but adjustments are always allowed.
To complete a W-4 with more accuracy based on your income and needs, check out the “Form W-4 Assistant” in the personal calculators section at paycheckcity.com. It walks you through an income and taxes- due calculation and determines the proper number of allowances to claim based on your personal situation; completing it with your most recent tax return in hand will make the calculations as accurate as possible.
SHORT COURSE | Knock-out option
A knock-out option is a form of derivative where the buyer has a right – but not an obligation – to buy the underlying currency, commodity or other position at a set price.
Unlike regular options, this derivative contract becomes worthless – it gets “knocked out” – if the underlying asset goes through a certain price level.
For example, a knock-out option based on the value of the U.S. dollar against the euro would expire and become worthless if the dollar falls below a specified exchange rate against the euro. Knock-outs tend to be cheaper than regular options, allowing investors to take larger positions for less money. As a result, they are popular with hedge funds and other speculative investors.
