Federal Disability Retirement under FERS and CSRS

Federal and postal employees sign a “compensation package” when they become employees of the Federal Government or the U.S. Postal Service. Regardless of the Federal Government agency for which a person works, a Federal Government employee or the The US Postal Service falls under one of two basic systems: FERS, an acronym for “Federal Employee Retirement Systems,” essentially those employees first hired after December 31, 1983; o CSRS, which stands for “Civil Service Retirement System,” those employees prior to 1983. There are some “crossovers” intertwined, called “CSRS compensation,” etc., but for our purposes in discussing federal disability retirement benefits, it is sufficient simply to identify the two main generic designations.

Whether under FERS, CSRS, or CSRS compensation, every federal and postal employee has multiple benefits when they become an employee of a federal agency or the US Postal Service: salary; health insurance options; life insurance options; contributions to the Thrift Savings Plan (TSP); FECA Rights (Federal Employees Compensation Act) – essentially, the Federal Workers’ Compensation Form; and federal disability retirement benefits under FERS or CSRS.

Of course, when a person is first employed by the Federal Government or the US Postal Service, it is rare that much attention is paid to the latter two “benefits” as part of the total compensation package. Because how many employees would ask their potential employers about the laws governing the employee benefits available if injured on the job, or more rarely, the benefits allowed if a person becomes medically unable to perform one or more of the essentials? From his job? ?

However, it becomes of great importance when a medical condition begins to affect a person’s ability to perform the job for which they were hired, with the Federal Government or the US Postal Service. In that case, what one does not knowIt can actually hurt you. Since you only have one (1) year from the time you separate from Federal Service to apply for Federal Disability Retirement benefits under FERS or CSRS, it is important to know your rights. Also, because it is not your agency that determines whether or not you are eligible for federal disability, but the Office of Personnel Management that reviews and determines whether or not you are approved or disapproved, it is important to have adequate legal representation to secure your financial future.

There are multiple issues that govern the preparation and filing of a Federal Disability Retirement Application, including: completing the appropriate and necessary Standard Forms; the collection of adequate medical documentation to meet the statutory eligibility criteria and demonstrate by a preponderance of the evidence that you are eligible; citation of the corresponding legal authorities to persuade the Personnel Administration Office that it meets the necessary criteria; and overcome any objections related to “reasonable accommodations” that the Federal Agency or the US Postal Service often allege, and which can create one of the many obstacles in the way of obtaining federal disability retirement benefits under FERS or CSRS.


Differences in work ethic between Russians and Americans

Lynn Visson’s “Wedded Strangers” identifies the differences in work ethic between Russians and Americans:

“Americans, with a work ethic, grew up knowing they would have to work hard to get a job. For Russians, under the Soviet system, the government found them work or they got it through personal contacts.”

“Under the Soviet system, the idea was to get away with as little work as possible, as there were no pay raises. There was also no real threat of being fired. Working hard only created more work.”

“For women in the Soviet Union, the workplace was a place to gossip, sell each other clothes, and exchange tips on where to get consumer goods.”

“For Russians, Americans are obsessed with time. For Americans, time is money. For Russians, relationships are more important than time.”

Lynn Visson’s “Wedded Strangers” speaks to other distinctions between Russians and Americans:

“The worst thing a Russian can say about you is that you are dry. Which means you are cold and logical. Outpourings of emotion in private life are balanced by extreme restraint in public life.”

Russians smile when there is something to smile about, for example when they are with their family and friends and the vodka is flowing.

The Russians have what is best described as a dry sense of humor. They make jokes that are very sharp or clever. They can also be very sarcastic. They make humorous comments that require intelligence and a great deal of understanding of a situation to be funny.

The Russian tells his joke or anecdote with a serious expression on his face, while everyone else laughs. If he laughs with the others, he spoils the joke.

Lynn talks about different perceptions of time:

“Being late is part of the Russian structure. Being late was a way to show contempt for the system and to assert yourself. For Russians, appointments are guidelines.”

“Americans do one thing at a time. They value short-term relationships and take deadlines seriously. Russians do a variety of things at the same time, value long-term relationships and are flexible about dating.” .


Are Metal Roofs Good in Barrie?

Metal Roofs Good in Barrie

You may have been wondering, “Are Metal roofs good in Barrie?”. Well, you’re not alone. The question has been plaguing home owners for decades. Here are some facts about metal roofing. First, it’s recyclable. So, your home will save money on energy costs. Second, metal roofs last 50 years or more. And, as a bonus, they look great. And, they don’t require a lot of maintenance!

Finally, you should know that there are many benefits to installing Metal roofing Barrie. While the cost of installing a metal roof varies according to the square footage of your home, there are many advantages to installing one. They’re low-maintenance, aesthetically pleasing, and can even increase your home’s value over time. And, they’re made right here in the USA! If you’re wondering: “Are Metal roofs good in Barrie?”, read on!

In addition to being sturdy, metal roofs look good. They add more weight to your home, but they’re worth it for most people. Metal roofs come in a variety of colors, styles, and designs, making them a practical option for almost any home. While they may add a bit of weight to your house, they’re durable enough to last for decades. Plus, they won’t crack, break, or leak. And while metal roofing is heavier than most other roofs, there’s no need to worry about your home’s safety.

Are Metal Roofs Good in Barrie?

Despite the cost, metal roofs are worth their weight in gold. Unlike many other types of roofs, they can last for 40-70 years. Traditional asphalt roofs are estimated to last between 12 and 20 years. Metal roofs can withstand wind speeds of up to 140 mph, and they won’t crack or corrode. They also don’t catch fire due to lightning or wildfires. They’re a wise investment for your home.

One of the best reasons to have a metal roof is for the aesthetics. Metal roofs look great, but they’re also durable. They resist hail, rain, and falling debris. Additionally, they’re also flame-retardant, making them the perfect choice for Barrie homeowners. But, you should know that there are some disadvantages to metal roofs as well. To get a quote from a metal roof company, contact Steel Roofing Barrie.

Despite being inexpensive, metal roofing requires specialized techniques. They’re not corrosive, easy to clean, and maintain their aesthetic appearance over time. Plus, they’re good for most homes. The gauge system varies between.032 and.040, so the thicker the metal, the longer it will last. Roofing contractors in Barrie use only the best grade of aluminum for their projects.


Are you buying the right health insurance plan? read this

It is rightly said that necessity is the mother of invention. This applies to health insurance as well. The deterioration of lifestyle patterns and the rising cost of health care in India paved the way for health insurance services. This need has been further aggravated by the fact that, unlike in the West, social security systems are non-existent in India. Governments have made every provision to extract taxes from citizens at every possible point, but when it comes to health care and social security, they have done nothing at all.

Therefore, it is the responsibility of the citizen to protect himself. But it’s not that easy to get the right health insurance policy. There are more than two dozen general insurance companies offering different types of health insurance plans in India. Many times, people end up buying health insurance plans that are not relevant to them and that do not help them during their time of need.

Therefore, it is of crucial importance that you understand the nuances of health insurance plans and then just make a decision. Here is a quick list for you.

What do all health insurance plans cover?

Health insurance plans are primarily intended to provide you with coverage against hospitalization and critical illness. Most plans cover this. However, there are many plans that do not cover certain types of healthy foods. For example, you can find several mediclaim plans that do not cover problems related to blood pressure and diabetes.

The scope of coverage may also be different. For example, not all plans cover expenses after a hospital stay. In some, the period of coverage can be up to 45 days and in some, the period can be as little as one week.

It is your responsibility to verify these matters. If you trust the insurance agent going after you, it can cost you dearly later on. Agents are interested in making sales and commissions. They may show their concern and tend to offer you the best plans, but the reality can be very different. So, just take care of these aspects.

The development of the health insurance industry in India has motivated insurance companies to introduce comprehensive plans. A wide range of riders is also available at your disposal. So if you buy a standard policy, you can add additional riders that can give you coverage against many other risks, such as permanent disability benefit, diabetes coverage, etc.

Do they cover pre-existing conditions?

Most Mediclaim plans in India do not cover pre-existing conditions unless otherwise specified. Do not assume on this matter. If you are looking for coverage against a pre-existing medical condition, clarify it first. You can compare health insurance plans online and consult with the customer service center through the option of online chat or phone call.

There are plans that cover pre-existing conditions under certain conditions. Generally, there is a set period under which pre-existing conditions are covered. The cost of such plans is naturally higher than the standard ones.

Can multiple family members be covered by one plan?

If possible. You can simply opt for a family floating plan and get coverage for your family members in one plan. There are countless benefits of these plans. The premium is a bit higher but quite a bit lower if you opt for different health insurance plans for multiple family members. The collective cost for multiple plans is much higher.

Family floating plans, on the other extreme, are profitable. The most frequently asked question about family floating plans is what happens if one member uses up the coverage limit and another member gets sick. There are solutions for these conditions.

You can top up the coverage limit during the policy period. Of course, you have to pay an additional premium to get the extended coverage.

Can you change from one health insurance plan to another?

Portability is not just limited to the telecommunications sector. The Insurance Regulatory and Development Authority of India (IRDAI) has made portability possible in the health insurance sector.

If for any reason you want to change your health insurance services company, you can submit a change request. Health insurance is offered by general insurance companies, so far, and they cannot deny your portability claim.

They may try to hold you back, but in the end, it is your prerogative to make the final decision. If you encounter a problem related to your health insurance plan, you can file a complaint on IRDAI’s online consumer complaint redress system. It is incredibly efficient and you can expect an action within a period of 15 to 45 days.

However, the IRDAI has taken tough measures to protect consumer rights and there is every chance that your complaints will be resolved by the insurance company itself at the first stage and you do not need to approach the IRDAI in that case.

What about tax exemptions?

In the current tax year ending March 2015, you can claim a tax deduction up to the limit of Rs 15,000 for the payment of health insurance premium, under Section 80D of the Income Tax Act. From the next fiscal year, this limit is set at Rs 25,000 per year.


Is the letter of intent a worthless document?

A letter of intent (LOI) is a common way of expressing your intentions to purchase property without having to write a formal, legally binding contract. The letter of intent is presented to a seller in the preliminary stages of a project. A buyer’s intentions are spelled out clearly and simply so the seller knows exactly how he wants to buy the property and under what terms. Essentially, a letter of intent is to open a dialogue and create a framework for that dialogue between buyers and sellers.

Definition of a letter of intent

“A Letter of Intent is basically a written statement expressing the sender’s intention, should certain circumstances arise, to take or refrain from some action, such as entering into a future agreement with the recipient or, more generally, to carry out carry out the commercial activities mentioned in the Letter of Intent”.

I often send an LOI right after I find a building, I quickly ran through the operational numbers and realized a deal could be struck. This entire process can take as little as 30 minutes. I want the seller to acknowledge that I have a serious interest in the building and not just a ‘tire kicker’. The sooner you know you have a potentially viable sale of your property, the sooner you can stop receiving calls and inquiries from others. In other words, your attention will be focused on the dialogue with me.

The letter of intent in the offer process

This Letter of Intent is not a traditional letter. You don’t write it down and forget it. It is a living document that should be updated and added to periodically throughout the offering process. In the offer and purchase process, the letter of intent tells the seller of the property that you are interested in not only submitting a purchase proposal, but also receiving all LOI updates and modifications. The LOI is an agreement to be agreed in the future. Once the Investor and the seller have reached an agreement of minds through the LOI, a formal Purchase Agreement will be drafted.

If the letter of intent is accepted, the due diligence period will begin. It will continue until the time agreed by both parties in which, at the end of the term, a binding contract is built. Terms may change during this time if certain previously undisclosed aspects of a property are discovered. For example, there may be soil contamination where the buyer will not want to buy the property and will opt out of the non-binding contract safely. Or, perhaps the property is in much worse condition than originally thought, causing the buyer to negotiate a lower purchase price.

If not binding, is the letter of intent a worthless document?

A letter of intent is not an offer or a contract. It does not commit you or the seller to the project. In other words, it is not enforceable. Often, in the LOI there is many times, at the bottom or in the body, a paragraph that establishes and reinforces the non-binding character of the LOI.

This should be a basic understanding of the nature of the LOI. this language is

usually just a brace is inserted so that everyone can read that it is not a binding document, nor an agreement to accept in the future, unless specifically written.

The specifics of due diligence, cash flow and buyers’ needs, how those terms will be carried out with sellers. In most initial presentations, it is the accommodation of the seller’s financial needs that is addressed. As a result, the focus is more on the seller’s needs than on the buyer’s.

Therefore, the dialogue breaks down and the purchase proposal falls by the wayside.

When the needs of the buyer and seller are addressed up front, it helps to secure a move to contract. s are explained in the . Buyers are often disappointed when their offers die at the LOI stage. Emotions aside, understanding the nature of the LOI is just a tool to open up the dialogue and see if an acceptable offer can be created. This allows the buyer to focus on the next viable deal. So as far as the LOI is concerned, it’s a very valuable document.

Write the letter of intent

Use formal letterhead and do not handwrite the letter of intent. A letter of intent must have five basic elements in its content:

1. The name of the Seller or Seller’s Agent

2. The name of the buyer

3. The address and description of the property

4. The details of your offer, including:

has. purchase price

b. Deposit

against Funds

d. Terms

me. Due diligence requirements

5. Deadlines.

The body of the LOI would address the following elements;

Terms: The offer price must be detailed, and the specific terms and contingencies of the financing, the initial payment, where and what type of financing will be obtained.

Conditions – We will often use this part of the LOI to request documentation related to the performance of the property, such as financial information or other items that may assist us in our due diligence.

Due diligence time: specific time frame for consumption, usually around 90 to 120 days, or the so-called “dead drop” date by which the deal must be finished and the Buyer must have completed their due diligence, financing in place and ready to close escrow.

Closing Date – The specific date by which you can complete all due diligence and arrange financing and any other clauses or provisions. When a formal contract will be drawn up if the LOI is approved if chosen, a clause that makes the LOI non-binding. Please indicate to the seller that you are interested in being informed of any modifications related to this property, ie the LOI document itself, essentially an invitation to reply.

Conclusion: Your signature and a place for the seller’s signature: Close the letter formally with “sincerely” or a similar polite expression. Sign your name and title. Please be sure to provide correct and complete contact and reference information for future correspondence. Remember to consult your attorney, tax advisor and other advisers for more information before entering into the formal contract.


Zyra: Providing Perfect Fit Bras Through A Perfect Party Plan Business

Are you one of the millions of women in the world who have never been able to find a bra that fits? A Zyra Fit specialist can help you with your dilemma. Most women have been wearing a bra since their teens and have never had one that fits them perfectly. This is because no two women are the same, and yet their only option so far has been a unique industry.

Zyra is a direct marketing company that uses the house party business model to educate women on what bras look good on them and then provides them with an expert fit and the opportunity to order their own custom bras. This is a brand new market in direct selling, so you’ll be on the ground floor of this extraordinary opportunity. You’d be surprised how many women want and need better fitting bras and are willing to pay a little more for them.

The party plan distribution model is ideal for three reasons:

-First, party guests are educated about a bra that fits them well and why it is important to their overall health and appearance.

-Second, women are accurately measured for their correct bra size at the event. They will have confidence in the fact that they are being fitted for a bra that provides comfort and lift, no matter how small or large they are.

-Third, each woman is encouraged by the others present who have made the right decision. The party atmosphere will remove any embarrassment. In addition, the measurement is done privately between the Zyra Fit Specialist and each guest.

Zyra sends each woman’s measurements to be tailored, and her new bras will be delivered in four weeks. These measurements are retained by Zyra so that future orders can be placed directly without refitting, unless a significant amount of weight has been added or lost since the last fitting.

Custom arm prices start at $85. Zyra also sells various other accessories such as panties, gel inserts, and lingerie soap. The hostess earns merchandise credit for her own purchases.

You, as a Zyra Fitting Specialist, can get started by purchasing a kit for $349 that has everything you need to conduct proper fitting sessions with clients, forms, marketing materials, and product samples. You earn 20% of your personal sales volume and qualify for cash and merchandise bonuses.

Once you have determined that the company is a solid and legitimate business to work for, your next concern is the level and quality of training the company provides so that you will be as successful as possible in your new venture. Most direct marketing companies realize this and Zyra is probably no exception. We did not see any mention of training on the website.

It’s your responsibility to make sure you find the best marketing tactics available so you always have people to talk about your business. Many women will throw a party to get discounts on their own purchases, but they won’t be willing to join you in business. Your search for women who want to start your Zyra home-based business begins with the use of Internet marketing techniques to generate targeted leads.


A guide to the most common trailer terms

Buying a trailer for the first time can be a challenging experience, mainly due to not knowing the specific terminology. This is a guide with the most common terms.

Total trailer mass (ATM) refers to the total weight of the trailer, made up of the weight of the trailer that is not coupled to a towing vehicle and the total weight of the load. Otherwise, Gross Trailer Mass (GTM) is the total weight of a fully loaded trailer, which is coupled to a towing vehicle. This means that GTM will always be less than ATM because some of the weight of the towed vehicle is transferred to the towing vehicle.

coupling It is the connection between the trailer and the towing vehicle. There are many types of hitches, depending on the loaded weight to be towed and the condition of the trailer.

Gross Combined Mass (GCM) As the name says it is a maximum combined weight of a vehicle, the passengers, the weight of the trailer and the weight of the cargo. The maximum allowable rate is set by the vehicle manufacturer. Also known by the following terms: Gross Combination Weight Rating (GCWR), Gross Train Weight (GTW), or Gross Combination Weight (GCW).

Gross Vehicle Mass (GVM) is the maximum weight of a vehicle, including the vehicle’s chassis, body and engine, all passengers and cargo. It is obvious that the weight of the trailer is not included in the GVM.

single axle trailer is to have an attached axle, with two connected wheels. Specifically for this type is that it can drag a certain weight of a load. On the other hand, Tandem Axle Trailer has two axles. The total number of wheels is 4. More wheels means more stability, so these trailers are great for pulling heavy loads. It is also known as Dual Axle or Double Axle.

security chains they are fixed to the trailer, which allows it to remain connected to the towing vehicle in the event of its disconnection. They should be checked every time a trailer is towed.

tare mass refers to the empty weight of a trailer. Usually this weight is stamped on the trailer itself by the manufacturer.

HAS Useful load It is the maximum allowable weight of cargo that a trailer is designed to carry. It is the difference between your Tare Mass and your ATM.

WINE is a vehicle information number containing 17 characters. A trailer is identified by that unique number. Some states in Australia require the VIN to be stamped on the trailer.

Weight distribution system is a system that increases the towing capacity of a trailer, improving handling and braking. The system is located around the couplings, including additional equipment.


Willow Basket Wholesale Practical Decoration

Willow Basket Wholesale Practical

A variety of uses for the Willow Basket is endless, from adding a natural style to a room to serving as a practical decorative object. These products are made of woven wicker and lined with fabric material. These natural-looking containers can be used to hold flowers, plants, and other objects. These baskets can be purchased wholesale and can make a wonderful gift for a friend or loved one. The following are some of the most common uses for the willow basket manufacturer.

A workshop is a wonderful opportunity to learn the traditional method of weaving with willow, while using willow harvested from a local farm. The workshop is suitable for beginning and intermediate weavers, and the instructor will provide instructions for proper care of the finished pieces. The workshop fee is $175, plus materials and an hour-long lunch break. Participants should have sturdy hands and a desire to learn more about weaving with willow.

The wicker basket is versatile enough to serve many purposes. It can hold plants and make an attractive display on a wall. It can also be used as a functional basket to store items, as it can double as a newsstand or reading nook. The versatility of a wicker basket is truly unparalleled. Its unique shape makes it a perfect accent piece for any room. The wicker baskets are available in a variety of sizes and shapes, making it a great choice for many interior decorating projects.

Willow Basket Wholesale Practical Decoration

Before placing your order, you should line the bottom of the basket with heavy-duty plastic. You can make this yourself using a sheet of plastic weed barrier or use a plastic trash bag liner. Remember to leave a two-inch overhang on the edges. These tips will ensure that your Willow Planter Basket Price will be right on budget. You should also consider the time required to get the basket. It’s easy to buy an inexpensive basket online, and it will look stunning in your garden.

Aside from its weight, a high-quality wicker basket will last for many years. If you purchase a high-quality basket, it will be delivered to your home or business. If you order one, make sure you include the size of your container. It will be heavier than a standard planter, but it will still look great and be a beautiful addition to your landscape. Aside from that, a quality basket will not cost you much.

Choosing a high-quality basket is an excellent way to add a decorative accent to your garden. If you want to be extra creative, try using an old basket that you’ve used for years. It will be unique and add a lot of charm to your garden. If you’re looking for a more affordable option, consider a vintage version. With the right care, you’ll enjoy your new addition in no time.


The best home business and 3 steps to start

Are you looking to open a store from home? The truth is, you don’t necessarily need to do any physical work and potentially not even see the product. Here are some tips for getting started with your first home business.

Become an affiliate.

What is an affiliate you are wondering? Well, your role will be to promote products for someone else who owns it. You can promote it all over the internet, but especially in the niche you are in.

A great company to work with that many people have had success with is ClickBank. There they specialize in digital information products. Digital selling is great in every way. There are far fewer overheads than selling a physical product (no shipping, warehousing, etc.). This means more money for you. The provider very often gives commissions in the range of 50-75% on ClickBank. If the product was $90, with a 75% commission, you would receive $67.50.

Study your product.

Many people ask if they need to buy the product. Our answer would be yes, but people have done it without buying the product it promotes.

You’ll want to study the product and figure out how you’re going to promote it. What niche is your product in? What is the specific group of people that would benefit from having it and who would actually buy it?

Promote it.

There are several ways to promote your product to the public. The ones we know best, Facebook and Twitter, are often great resources to get started.

You can create a Twitter account and a Facebook page and add as many as you can. Post your URL and start writing articles and reviews based on your product. You can often make these social networking sites interconnect with each other. For example, when you post on Facebook, you can often get a push notification on your Twitter account if you set it up.

Affiliate marketing can be a great home business to start. Spend 2/3 of your time promoting and the other 1/3 learning how to promote better. Learning how to do it better can save you thousands of hours and make your first sale much faster. Study those who have had great ClickBank success stories and model exactly how they do it.


Exchange Traded Funds: 8 Ways to Improve Your Portfolio With ETFs

Exchange Traded Funds (ETFs) were first introduced to institutional investors in 1993. Since then, they have become increasingly acceptable to advisors and investors alike due to their ability to allow greater control over the trading process. construction and diversification of the portfolio at a lower cost. You should consider making them a basic component of the foundation of your personal investment portfolio.

1. Better diversification: Most people don’t have the time or the ability to follow every stock or asset class. Inevitably, this means that an individual will gravitate towards the area in which he feels most comfortable, which may result in investing in a limited number of stocks or bonds in the same business or industry sector. Think of the telecommunications engineer who works at Lucent who bought stocks like AT&T, Global Crossing, or Worldcom. Using an ETF to buy a core position in the market as a whole or in a specific sector provides instant diversification that reduces portfolio risk.

two. Improved performance: Research and experience have shown that most actively managed mutual funds generally underperform their benchmark index. With fewer tools, limited access to institutional research, and a lack of a disciplined buy/sell strategy, most individual investors fare even worse. Without having to worry about picking individual winners or losers in a sector, an investor can invest in a basket of broad-based ETFs for major holdings and can improve a portfolio’s overall performance. For example, the Consumer Staples Select Sector SPDR was down 15% through October 23, 2008, while the S&P 500 was down more than 38%.

3. More transparency: More than 60% of Americans invest through mutual funds. However, most investors don’t really know what they own. Except for a quarterly report that shows holdings at the close of business on the last day of the quarter, mutual fund investors don’t really know what’s in their portfolio. An ETF is completely transparent. An investor knows exactly what it is made up of throughout the trading day. And the price of an ETF is available throughout the day compared to a mutual fund that trades at the closing price of the previous business day.

Four. No style drift: While mutual funds claim to have a certain bias, such as large-cap vs. small-cap stocks or growth vs. value, it’s common for a portfolio manager to move away from the core strategy outlined in a prospectus in an effort to boost returns. An active fund manager may add other stocks or bonds that may increase return or reduce risk, but are not in the sector, market capitalization or style of the main portfolio. Inevitably, this can result in an investor holding multiple mutual funds with overlapping exposure to a specific company or sector.

5. Easier rebalancing: The financial media frequently extols the virtues of rebalancing a portfolio. However, this is sometimes easier said than done. Because most mutual funds contain a mix of cash and equity and may include a mix of large-cap, small-cap, or even value and growth stocks, it is difficult to get an accurate breakdown of the mix to properly rebalance the allocation of funds. target assets. Since each ETF typically represents an index of a specific asset class, industry sector, or market capitalization, it’s much easier to implement an asset allocation strategy. Let’s say you want a 50/50 portfolio between cash and the total US stock index. If the value of the S&P 500 (represented by the SPDR S&P 500 ETF ‘SPY’) falls 10%, you could move 10% cash to return to target assignment.

6. More tax efficiency: Unlike a mutual fund that has built-in capital gains created by previous trading activity, an ETF has no such gains that an investor is required to recognize income. When an ETF is purchased, it establishes the cost basis for investing in that particular trade for the investor. And given the fact that most ETFs follow a low-turnover buy-and-hold approach, many ETFs will be very tax efficient, with individual shareholders making a profit or a loss. only when in fact they sell their own ETFs.

7. Lower transaction costs: Trading an ETF is much cheaper than a mutual fund. In a mutual fund, there are shareholder service fees that are not required for an ETF. Additionally, ETFs eliminate the need for research and portfolio management because most ETFs follow a passive index approach. The ETF mirrors the benchmark index and there is no need for additional portfolio analyst expenses. This is why the average ETF has internal expenses ranging from 0.18% to 0.58%, while the average actively managed mutual fund incurs around 1.5% in annual expenses plus trading costs. .

To compare the total cost of owning an ETF to any mutual fund, the Financial Industry Regulatory Authority (FINRA) makes an ETF and fund analysis tool available on its website. The calculator automatically provides fee and expense data for all fund and ETF share classes. The calculator can be found at:

8. Trading flexibility and implementation of sophisticated investment strategies: ETFs are traded like other stocks and bonds. So this means that an investor has the flexibility to use them to employ a variety of risk management and trading strategies, including hedging techniques like “stop loss” and “shorting,” options not available to “long-term” mutual funds. -only”.

Another advantage is the ability to use “inverse ETFs” which can provide some protection against a decline in the value of the market or sector. (An inverse ETF responds in the opposite way to the performance of the underlying benchmark. So if one wants to minimize the impact of a drop in the S&P 500 index, for example, then one can invest a portion of the portfolio in an “inverse” that will go up when the index value goes down).

Or an investor can tilt their portfolio to “overweight” a particular industry or sector by buying more than one index ETF for that area. By purchasing an index, an investor can position himself to take advantage of expected changes in this industry or area without the inherent risks involved in an individual stock.

Some investors marry their individual stocks or mutual funds and don’t want to sell and incur a loss and miss out on an expected rebound. Another tax-efficient option for an investor to consider is to sell the losing security while buying the ETF that represents the industry or sector of the security being sold. In this way, the investor can record the loss, take the tax deduction for it, and still be positioned in the area but with a more widely diversified index.

Investors, academics, and financial advisors sometimes question the “buy and hold” strategy. Some investors are looking for a more active management tactical approach that can be done with ETFs. Although ETFs represent passively created indices, an investor can actively trade them. There are a variety of trading strategies available to “ride the trends”. When an index moves above or below its 50-day moving average or 200-day moving average, this can be a signal to enter or exit the ETF. To minimize the trading costs that would be incurred when trading an ETF, an investor can use an ETF matching program that covers all trading costs. These deals are still generally less expensive than buying or selling multiple individual shares in a separately managed account or using an actively managed mutual fund.