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SmartAsset Team

SmartAsset employs a team of writers and editors with years of experience in the editorial, news and personal finance industries. Some staff members also hold the Certified Educator in Personal Finance (CEPF®) designation from the Institute for Financial Literacy.

Posts by SmartAsset Team

A business owner researching how federal corporate income taxes work.
Tax Planning

What Is the Federal Corporate Income Tax Rate?

The federal corporate income tax rate in the U.S. is a flat 21% as of 2025. This rate applies to corporate profits and affects how much income a company keeps after taxes. In addition to the federal rate, businesses may also face state corporate taxes, which vary by state and increase the total tax cost.… read more…

A woman researching what qualifies for a portfolio interest exemption.
Investment Taxes

Portfolio Interest Exemption: What Qualifies and Examples

The portfolio interest exemption is a part of U.S. tax law that lets foreign investors receive interest income from certain U.S. sources without paying withholding tax. This rule helps encourage international investment by lowering tax costs. To use the exemption, investors must meet specific requirements. A financial advisor can help you determine eligibility and gather… read more…

A woman reviewing documents to report tax-exempt interest.
Tax Planning

Tax-Exempt Interest on Form 1040: How to Report and Examples

Reporting tax-exempt interest on Form 1040 is required even though the interest is not taxed. This type of income often comes from municipal bonds and must be listed on your tax return to follow IRS rules. A financial advisor can help you track and report this income correctly as part of your overall tax strategy.… read more…

A businesswoman evaluating whether she could retire at 50 with $300,000.
Retirement Planning

Can You Retire at Age 50 With $300K?

Retiring at 50 with $300,000 depends on several factors, including lifestyle choices, income sources and long-term financial planning. Unlike traditional retirees who stop working at 65 and have access to Social Security and Medicare, early retirees must rely on personal savings, investment portfolios and possibly even part-time work to sustain their lifestyle. A financial advisor… read more…

An investor evaluating tangible and intangible assets.
Investing for Beginners

Tangible vs. Intangible Assets: Definition and Examples

Tangible and intangible assets represent two types of property that businesses and individuals own. Tangible assets have a physical presence and include real estate, machinery, or inventory. Their value is often tied to their condition and market demand. Intangible assets, on the other hand, lack a physical form but hold financial value. Examples of intangible… read more…

An investor evaluating hedging strategies for her portfolio.
Portfolio Management

12 Hedging Strategies and Examples for Your Portfolio

Hedging strategies can help investors reduce or offset potential losses in their portfolios. These approaches often involve taking positions in assets that perform inversely or independently from existing investments. The basic idea is that if one holding goes down, the other will go up. Common hedging strategies include diversification, using options and futures contracts, and… read more…

An employee researching how bonuses are taxed.
Tax Planning

How Are Bonuses Taxed in 2025?

Bonuses paid by employers get special tax treatment and could have a significant impact on an employee’s tax situation. In the United States, bonuses are typically considered supplemental wages, which means they are subject to different withholding rules than regular income. There are two ways bonuses can be taxed: the percentage method or the aggregate… read more…

A trader looks at financial data on her computer screen in her office.
Investing for Beginners

Risk Capacity: What Is It and How Is It Measured?

Risk capacity refers to an individual’s financial ability to absorb investment losses without disrupting long-term goals. Objective factors, including income, assets, time horizon and liabilities, determine risk capacity. To measure your risk capacity, analyze key aspects of your finances to determine how much risk you can afford. A financial advisor can help you evaluate your… read more…

Adirondack chairs arranged in front of a yellow beach house in Captiva Island, Florida.
Real Estate

Short-Term Rental Investment: What to Consider, Pros and Cons

Individuals looking to diversify their income streams are increasingly looking at short-term rental investments. Airbnb and Vrbo simplify listing properties, giving investors more potential to earn high returns. However, anyone considering this investment path must weigh the pros and cons carefully. Consulting a financial advisor may be useful for investors who want a clear picture… read more…

A businessman working on a financial report of corporate operations.
Tax Planning

Straight Line Depreciation: Definition and How to Calculate

Understanding the financial health of a business involves a lot of accounting. One of the most popular methods for determining the value of a business is straight line depreciation. Investors often choose the straight line method for its simplicity and consistency. Straight line depreciation shows how an asset’s value declines over time. This method aids… read more…

A senior couple is happy with their plan for retirement.
Retirement Planning

6 Safe Investments for Retirees to Consider

As retirement approaches and the focus often shifts from accumulating wealth to preserving it, retirees often prioritize choosing safe investments. Given market unpredictability, retirees may look for investments that offer more stability and security. Safe investments for retirees typically prioritize capital preservation and steady income over high returns. These options can include government bonds, which… read more…

A close-up of a woman's hand balancing wooden blocks that spell "RISK," while dominos fall in the background.
Investing for Beginners

Risk Capacity vs. Risk Tolerance: What’s the Difference?

The terms risk capacity and risk tolerance may appear similar at first. However, they reflect different aspects of an investor’s financial profile. Risk capacity refers to the objective ability to absorb losses based on income, assets, time horizon and financial goals. Risk tolerance, by contrast, measures a person’s subjective comfort level with market volatility and… read more…

A man working from home.
Tax Filing

Form 6252: How to Report Installment Sale Income

Taxpayers use Form 6252 to report installment sales when at least one payment arrives after the tax year of the sale. Rather than recognizing the full gain upfront, sellers have the option to spread their tax liability over several years as they receive payments. Form 6252 helps calculate the gain portion of each payment and… read more…

A woman points to graphs while another looks on.
Tax Filing

Form 2439: What Is It, Who Files It and Who Gets It?

Form 2439 is a tax document that a regulated investment company (RIC) or real estate investment trust (REIT) issues when it retains capital gains and pays taxes on behalf of its shareholders. Instead of distributing the gains, the fund provides Form 2439 to shareholders, allowing them to report the income and claim a tax credit.… read more…

A woman researching how to use trailing stop orders.
Investing for Beginners

Trailing Stop Order: How to Use Them, Pros and Cons, Examples

A trailing stop order is a type of trade that helps you lock in profits or limit losses as a stock’s price moves. Unlike a traditional stop-loss orders, a trailing stop moves with the price, adjusting automatically if the stock goes up. If the price drops by a set amount or percentage, the order triggers… read more…

A woman deciding about claiming Social Security benefits at age 70.
Social Security

Social Security Benefits: Early Retirement vs. Age 70

Determining when you claim Social Security benefits will affect your quality of life in retirement. Many people have a tough time deciding between taking early retirement or waiting until age 70 to maximize their benefit payments. Working with a financial advisor can help you evaluate your options and choose the best strategy for your situation.… read more…

A woman deciding whether to retire at age 62 or 65.
Retirement Planning

What Age Should You Retire: 62 or 65?

Deciding whether to retire at 62 or 65 involves multiple factors. Retiring at 62 lets you enjoy retirement earlier, but claiming Social Security at that age reduces your monthly benefit. Retiring at 65 provides additional time to build savings but delays your retirement plans. Other important considerations include your health, financial situation and personal lifestyle… read more…

A taxpayer researching rules and examples for noncash charitable contributions.
Tax Planning

Noncash Charitable Contributions: Rules and Examples

Charitable donations are not just limited to cash contributions. Many individuals and businesses choose to make noncash charitable contributions for anything from clothing and household items to real estate and stocks. Noncash donations must be made to qualified organizations, and, in many cases, donors may need to determine and document the fair market value of… read more…

A taxpayer researching how to claim investment interest expense deduction.
Tax Planning

Form 4952: How to Claim Investment Interest Expense Deduction

Form 4952 helps investors who borrow money to finance their investments deduct the interest paid on those loans. This tax deduction can offset investment interest costs but comes with specific limitations and eligibility criteria. The deduction can only be applied to interest expenses related to investments in taxable income-generating assets, such as stocks and bonds.… read more…

A woman researching where to find tax-exempt interest on her taxes.
Tax Planning

Where to Find Tax-Exempt Interest Income on Your Taxes

Tax-exempt interest income is an important part of many investors’ portfolios, and knowing where to find it on your tax forms is essential when it comes to preparing your tax return. While this type of income—  commonly earned from municipal bonds, certain U.S. savings bonds and other qualifying investments—is not subject to federal income tax,… read more…

A woman reviewing examples of tax-exempt interest income.
Tax Planning

Tax-Exempt Interest Income: What It Is, How It Works, Examples

Tax-exempt interest income is earned primarily from municipal bonds and other qualifying investments that are exempt from federal, and sometimes state, income taxes. By holding these investments, taxpayers can reduce their taxable income while still earning passive returns. However, tax-exempt interest income may still be subject to other tax considerations, such as the alternative minimum… read more…

A woman researching how long it takes to cash out an annuity.
Annuities

How Long Does It Take to Cash Out an Annuity?

The time it takes to cash out an annuity depends on the type of annuity it is, the withdrawal method and the company processing the request. Lump-sum withdrawals may take a few days to several weeks, depending on administrative requirements and potential surrender charges, whereas structured payouts follow a predetermined schedule and cannot be expedited.… read more…

A woman looking up how to use the 25x retirement rule.
Retirement Planning

25x Retirement Rule: How to Calculate and Examples

Planning for retirement could be complex, but the 25x retirement rule can simplify it. This guideline suggests that you need to save 25 times your annual expenses to retire comfortably. It’s a straightforward calculation that gives you a clear target for your savings. Working with a financial advisor can help you develop a more comprehensive… read more…

A woman looking up what percentage of retirees actually have $4 million.
Retirement Planning

What Percentage of Retirees Have $4 Million?

As retirement approaches, many ask themselves how much money they will need to save for a comfortable retirement. One common benchmark is $4 million, which is considered by some as the amount needed for a worry-free retirement. However, achieving this amount is rare. According to the Federal Reserve Board, only a small fraction of retirees… read more…

A woman looking up what percentage of retirees have $3 million saved.
Retirement Planning

What Percentage of Retirees Have $3 Million?

If you have $3 million in retirement savings, you are among a tiny percentage of American households with a nest egg that large. When calculating what percentage of retirees have $3 million, the Employee Benefits Research Institute (EBRI) analysis found that just 0.8% of households have saved $3 million in retirement. While that may seem… read more…