Damage to Property and Loss of Income A utility outage can cause both physical damage to business-owned property and income losses. The following example demonstrates how such losses might occur. Carla owns a popular restaurant called the Cozy Cafe. One day, a severe windstorm knocks down power lines located a mile from the restaurant. The lines are owned by the local electric utility, Pro Power. The restaurant has no power for five days....
Waivers of subrogation can impact your insurance coverage. Learn when they are used and how they work. What Is a Waiver of Subrogation? Subrogation describes the legal right of an insurance carrier to sue a negligent third party that caused an insurance loss that the carrier had to pay. If you suffer injury or damage due to an accident caused by someone else, you have the right to seek compensation for your loss by suing the responsible party....
The new tool, located on the IRS website, lets users enter their bank account information that will be used to deliver child tax credit payments of up to $300 per child. The payments would otherwise be sent based on whatever information the IRS has on file from previous tax returns, and by paper check if the agency lacks current bank account information. It’s too late to affect the first round of payments, which go out July 15, but updates made by August 2 will affect those going out August 13 through the end of the year....
Popular crowdfunding sites include GoFundMe, Kickstarter, and Indiegogo. Crowdfunding sites raised about $60 billion globally from 2010 to 2017, researchers at the economic think tank Bruegel reported, and the World Bank estimated a global crowdfunding market of $96 billion by 2025. More than 1,500 crowdfunding sites operate in the U.S. as of June 2021. These numbers tell of a real trend in terms of online fundraising. While some crowdfunding sites are being used to raise money to back a new business or creative venture, other sites are becoming increasingly utilized for users to raise money to cover unexpected financial emergencies, such as medical bills, an unexpected death, even veterinary bills....
Alternate name: Safekeeping fees Unless you request a paper stock certificate or insist upon the use of the direct registration system, you will typically have the securities placed in a global custody account of some sort. Custodians also collect your dividend and interest income for you, give you an account statement, and handle any corporate actions. These could include receiving shares of a spin-off or making an election for cash or stock following a merger....
But the opposite can also happen. It will add to your positive return if a foreign currency increases in value against the dollar. Emerging market bonds are an interesting example. Emerging Market Bonds: Dollar Denominated vs. Local Currency You have two options when it comes to investing in emerging market bonds. The first is to invest in the dollar-denominated debt issued by the world’s developing countries. Dollar-denominated simply means that the bonds are issued in U....
When your biggest asset is your home, a reverse mortgage can offer an attractive opportunity for income. However, it’s important to note the costs of a reverse mortgage and what happens to your home after you pass away. Here’s a closer look at the benefits of a reverse mortgage, so you can make an informed decision for your financial needs. What Is a Reverse Mortgage? A home equity conversion mortgage (HECM) is a type of home loan commonly referred to as a reverse mortgage....
Market pay rates for people who are doing similar work Market pay rates in similar industries The pay ranges in the region in which the job is located The experience of the individual to whom you are making a job offer The education of the individual to whom you are making a job offer Pay rates and salary ranges established by an individual employer for current employees The availability of potential employees to perform a specific job in the employer’s region and location...
Since a limited liability company (LLC) with more than one member files a partnership tax return, distributive share also applies to LLC members. Distributive share is also applied to S corporation owners, based on their percentage share of shares owned in the S corporation. How Distributive Share Is Determined The allocation of distributive share is usually determined by the partnership agreement, which includes the allocation of the total net income for the year for all partners, totaling 100%....
What Is AM Best? AM Best has been in business since 1899, providing policyholders a way to verify the financial strength of insurance companies. The agency offers in-depth financial analysis reports to help people judge an insurer’s creditworthiness. It gathers comprehensive information about insurance companies and distills it into a simple letter grade. It is, in a sense, your insurance company’s report card. You can use this information to help you make an educated buying decision for your insurance needs....
In addition, several financial assistance programs exist to help families pay for or subsidize the cost of child care. You’ll have to do a bit of research to see what’s available to you, but it will likely be worth the time. State Programs Each state offers child care assistance that’s funded by the federal government, but eligibility requirements and fund availability vary by location. In some cases, states fund free or low-cost pre-K programs for children ages three to five years old....
Suppose a trader expects that an upcoming economic report or world event will alter the price of their asset in a given way. When the trader buys an asset-based on this instinct, that is the rumor phase of the strategy. Once the event passes or the report is released, the news has been made public. The trader then dumps their positions, and the market moves. Investors who use this strategy tend to seek out undervalued markets....
B/C loans are also called B, C, and D paper loans. These fall into the category of non-conforming loans, which do not meet the standards set by Freddie Mac or Fannie Mae. Since B/C loan borrowers don’t qualify for “A” loans from traditional financial institutions, they must use alternative lenders, which usually charge higher interest rates and fees. B/C loans tend to be issued as temporary loans until a borrower can improve their credit to qualify for a conforming A loan from a traditional lender....
Let’s dig deeper into how CD-secured loans work, their pros and cons, and alternative options you may want to consider. What Is a CD-Secured Loan? Consumers typically use CDs to save money for short- and long-term goals. However, some banks and credit unions allow CD holders to borrow money against a CD through a CD-secured loan. Essentially, a CD-secured loan is a type of personal loan that requires you to put up a CD as collateral....
Alternate name: Service-providing bank The Society for Worldwide Interbank Financial Telecommunication (SWIFT) network is the largest network of correspondent banks in the world, connecting over 11,000 financial institutions in 200 countries and territories. Through the SWIFT network, individuals and businesses can conduct business around the world without their financial institution needing to be in two locations. For example, let’s say you live in the U.S. and go to your local bank to wire funds to a friend in Italy....
New cryptocurrencies, non-fungible tokens, or other digital assets are released to the public often through crowdsales. Crowdsales for cryptocurrencies can raise millions of dollars but have also been used in Ponzi schemes and other fraudulent activities. How Do Cryptocurrency Crowdsales Work? Each cryptocurrency crowdsale is unique, but as a potential investor, here’s what you can expect: 1. Promoters Decide on the Crowdsale’s Goals Crypto crowdsales that raise the most money tend to have clear goals and guidelines for how the crowdsale works and how the proceeds will be used....
Flexible spending accounts are usually for medical, dental, or dependent care expenses. The primary types of FSAs are health care FSA (HCFSA, health FSA, or medical FSA), special purpose FSAs (for dental and vision), and dependent care FSA (DCFSA). Less common types of FSAs include adoption assistance FSAs. Employers aren’t legally required to offer FSAs, but if yours does, you can choose whether to participate in the plan during the annual benefits enrollment period....
Stock shares represent fractional ownership in a company. A company may issue different classes of shares, including some that come with voting rights and some that do not. When an individual owns a majority of shares that have voting rights, that person has significant control over corporate governance. This is why a majority shareholder is sometimes called a “controlling shareholder,” although the two terms are not always synonymous, as we’ll explain below....
Find out more below about how MCCs work, why they matter, and how to make sure they don’t trip up your credit card rewards game plan. What Is a Merchant Category Code (MCC)? MCCs are four-digit numbers that credit card processors assign to businesses for credit card payments. The code is used to classify the merchant into a particular category based on the goods or services it sells most. In rare cases, a merchant can set its own MCC, but for the most part, the payment processors have the final say....
Common examples of pass-through entities include sole proprietorships, partnerships, limited liability companies, and S-corporations. We’ll explore each of these in detail below. Alternate name: Flow-through entities How a Pass-Through Entity Works Earned money is usually taxable. Individuals pay personal income tax on their salaries and businesses pay corporate tax based on the revenue the organization generates during a financial year. Unfortunately, this means business owners can face double taxation that forces them to pay a personal income tax on the money they make through their business and also pay a corporate tax under the business’s name....
