Nearly 60% of its business came from retail banking and 21 percent came from credit cards. Only 14% were from home loans, but this was enough to destroy the rest of its business. By the end of 2008, it was bankrupt. Why WaMu Failed Washington Mutual failed for five reasons. First, it did a lot of business in California. The housing market there did worse than in other parts of the country....
Although there are plenty of resources—such as mutual fund company websites, prospectuses, and financial periodicals—that provide information on mutual funds, there are just a handful of sites that specialize in providing unbiased facts and details on almost every mutual fund in the investment universe. If you want to get the most information available on mutual funds, you’ll definitely want to try one or all of the sites below. Best Resources for Researching and Analyzing Mutual Funds In no particular order, here are 6 of the best resources for researching and analyzing mutual funds: Zacks and Merrill Lynch are also good sites to use to research mutual funds....
Definition and Example of Physician Loans Also known as doctor loans, physician loans are mortgages for medical professionals who are new to the field. Since doctors might have trouble qualifying for conventional mortgages, physician loans can help them out. Let’s say you just graduated from medical school and are about to begin your residency. You want to buy a house for yourself and your family. When you begin to apply for a traditional mortgage, you realize your debt-to-income ratio is too high....
If you turned 72 on or after Jan. 1, 2023, and 73 before Jan. 1, 2033, you must begin RMDs at age 73.If you turned 74 on or after Jan. 1, 2033, you must begin RMDs at age 75. According to RMD rules, starting with the April 1 in the year after you reach the required age, you must begin taking annual distributions from your qualified retirement plans. For all subsequent years, including the remainder of the year in which the first RMD distribution occurred by April 1, you must take an RMD by December 31 of the year....
How Stocks Work Companies sell stocks to gain additional funds to grow their business, launch new products, or pay off debt. The first time a company issues stocks to the public is called the “initial public offering” (IPO). After the IPO, stockholders can resell their shares on the stock market—where prices are driven by supply and demand. The more stock offered for sale, the lower the price will drop. The more people buying a stock, the higher the price will rise....
Investors around the world felt sure that Russia was turning a corner and that foreign direct investment was flowing into the country. But Russia’s economy was on the brink of a crisis just a year later when the ruble fell to record lows against the U.S. dollar. The Russian central bank hiked interest rates by a massive 6.5%, but it failed to stem the tide. Investors lost confidence in the currency, but it recovered to some extent in 2016....
Licensing: Depending on what type of business you have, you may need a license to operate in your state. A license signifies that you have the necessary training and meet the requirements needed to complete the job you are attempting to get hired to perform. Some examples of business people who may need to be licensed include medical professionals; attorneys; hairdressers, barbers, and cosmetologists; accountants; home improvement contractors; real estate agents; and handlers of food or alcoholic beverages....
What Medicare Part B Covers Medicare Part B covers outpatient/medical services, some of which are subject to a deductible and a copay, but many are free. Preventive Services Preventive health care services are typically free provided that you see a doctor or health care provider who accepts assignments. This means that they’ll accept the Medicare-approved amounts as full payment. These are services that help to prevent illness, keep you healthy, and detect conditions, including:...
But veterinary costs can be unpredictable and expensive. To avoid breaking the bank with sudden expenses, many pet owners consider buying pet health insurance. Learn more about the coverage pet insurance offers and see if it provides the right value for your pet and your budget. What Pet Insurance Covers There are three main types of coverage offered: accident and illness, accident-only, and wellness. Nearly all pet insurance policies written are for accident and illness, and wellness benefits are typically provided as an add-on....
What Does It Mean To Default on a Loan? Simply put, a loan enters default when the borrower fails to pay the lender per the terms in the initial loan agreement. The time frame before default kicks in can differ from one loan to another. If you miss a payment or two, you may incur fees, and your loan may be designated as “delinquent,” but typically you can return to good standing by making a full payment within a reasonable amount of time....
Learn more about canceled orders, how to do them, and the different types of automatic cancellations. Definition and Examples of a Canceled Order An order you submit to trade a security that you or your investing platform void before it’s executed on a stock exchange is considered a canceled order. Types of orders that automatically cancel when certain conditions are met include immediate-or-cancel orders and fill-or-kill orders. Consider this example: You use a broker to place an order for 100 shares of Company XYZ....
These short-term loans are typically used for business needs, such as equipment investment, hiring, and purchasing inventory. Commercial and industrial loans may be either secured or unsecured. C&I loans can be given as a lump sum or a revolving line of credit. Businesses may be required to put down some type of collateral to secure the loan, like equipment or cash receivables. The Small Business Administration’s Paycheck Protection Program of 2020 is one example of a commercial and industrial (C&I) loan....
Credit references can include your bank, companies whose bills you pay regularly, or even previous landlords, supervisors, or perhaps your faith leader. Your landlord may contact the credit references you provide to get more information about your payment habits. Providing credit references that can vouch for you improves your odds of having your application approved. For example, if your last rent payments were always on time and you moved out with no issues, you may use a previous landlord as a credit reference....
The Perkins loan program was created in 1958 when Congress saw a strong need for a more educated workforce during the Cold War. The Perkins loan program ended in September 2017, but many borrowers still have outstanding loans. The interest rate on a Perkins loan is fixed at 5%, and there is a nine-month grace period after you graduate or leave school before repayment begins. You have up to 10 years to repay the loan in full....
Prepayment models may be used with any loan or debt, but are most common with mortgage loans. A premature return on a lender’s investment generates less profit for them, so an accurate prepayment model is a valuable tool to assess risk and prevent loss. For borrowers, understanding how a prepayment model works will help them know what to look for when taking on a loan, avoid prepayment penalties, and decide if it is okay to refinance....
Alternate definition: The primary account holder is responsible for maintaining all transactions associated with a credit card or bank account. For instance, if you’re the primary account holder, or borrower, on a credit card, you can add an authorized user to your account. That person will receive their own card that they can use to make charges, within the scope of any spending limits you’ve set for them. How a Primary Account Holder Works There are two main types of accounts a primary account holder will operate: a bank account or one for a credit card....
How Does a Stock Index Work? The underlying holdings in an index are commonly referred to as the index’s “basket of stocks.” For example, 30 of the largest U.S. companies are included in the Dow Jones Industrial Average (DJIA) Index’s basket of stocks. The movement of those 30 stocks in the basket affects the index’s performance. An investor who wants to add exposure to large-cap U.S. stocks can use the Dow as a guide for which stocks to pick....
If you own a stock and want to avoid a loss, you can enter a sell stop order to trigger if that stock reaches the predetermined price below its current value, limiting your losses. Example of a Stop Market Order Sally, the investor, owns shares of ABC Foods, currently priced at $100 per share. She purchased ABC Foods at $85 per share and has made a decent profit already. She believes the stock price has the potential to continue to rise even more, should the price reach $105, and she would like to take part in that momentum....
These loans are often adjustable-rate mortgages (ARM) and come with an initial low interest rate. The initial rate can make the payments manageable in the beginning, but it will expire after a fixed period of time. Once the initial rate expires, the interest rate will adjust based on current market conditions. This can result in payment shock for the borrower, and can lead to delinquencies in payment or even eventual foreclosure....
The estate and gift taxes have shared a unified rate schedule since they were combined in 1976 and given the name “Unified Transfer Tax.” The same tax rate applies whether property is transferred as an inheritance after death or as a gift. These taxes share the same credit, as well. You can reduce the value of your gifts by the same credit regardless of whether you give them away during your lifetime or after death, but the credit must be applied to your lifetime gifts first....
