The costs associated with repairing, rebuilding, or replacing damaged property can be substantial. Insurance may pay those costs in full or in part so businesses can keep their operations going and avoid a large out-of-pocket expense. Without commercial property insurance, some businesses might not survive a physical loss. Most commercial property insurance falls into one of four general categories: direct damage, time element, inland marine, and crime insurance. The type of insurance your company needs depends on your industry, the size of your business, and the nature of your operations....

Learn more about crude oil, the factors that impact prices, and how to invest in it if you decide that it’s right for your portfolio. What Is Crude Oil? Crude oil is a mixture of hydrocarbons formed from plant and animal remains that lived in a marine environment millions of years ago. Over the course of those millions of years, the remains were covered by layers of rock, sand, and silt....

Tax treatment of withdrawals—and the age at which you can and must take withdrawals without penalty—can vary among types of plans as well. A comparison can help you identify which is best for you. Investment gains grow tax-deferred until you withdraw the money in retirement. If you withdraw funds from the plan before age 59 1/2, however, you could pay a 10% penalty, and the withdrawal would be subject to federal and state income taxes....

The new U.S. Bank Altitude Connect Visa Signature Card offers extra points on a variety of travel purchases as well as on some everyday purchase categories such as gas and groceries. The card also offers a statement credit—money credited back to your card account—for streaming service purchases (up to $30 each year) and TSA Precheck or Global Entry application fees (up to $100 every four years). The Altitude Connect card, for which there’s no annual fee the first year and a $95 per-year fee thereafter, is the mid-tier card in U....

Many of the most successful companies in the world are holding companies. Learn about the overall structure, purpose, and benefits of holding companies, along with examples of how they work. Definition of a Holding Company A holding company is a company that doesn’t have any operations, activities, or other active business itself. Instead, the holding company owns assets. These assets can be shares of stock in other corporations, limited liability companies, limited partnerships, private equity funds, hedge funds, public stocks, bonds, real estate, song rights, brand names, patents, trademarks, copyrights—virtually anything that has value....

If you owe a balance on a negative account, you might be able to have it removed in exchange for paying the balance, or “pay for delete,” but if you’ve already paid the debt then you don’t have that to use as leverage—instead, you can use a goodwill letter. Goodwill Letters A goodwill letter is a letter you send to your creditors asking them to remove or stop reporting ​negative information from your ​credit report as a matter of goodwill....

This ratio, which is calculated by dividing the median home price by the median annual rent, spits out a single number that you can use to see whether it makes more financial sense to rent or buy. Let’s walk through the specific details of how the price-to-rent ratio is calculated. We’ll also share what its limitations are and how to use it with other information when you’re trying to make an important decision like whether to buy a home....

It’s key to separate accrued expenses from accounts payable. While both represent money that will be spent, they are not identical. Accounts payable are short-term expenses that must be paid because an invoice has been submitted. Accrued expenses are costs that are known to exist even though no invoice has yet been submitted. Your company gets the benefit of space, heat, and employee labor for up to a month before you receive an invoice or pay for them....

Find out about the most well-known subsidies, the history of these subsidies, and some of their costs. Definition and Examples of Subsidies Most subsidies are cash grants or loans that the government gives to businesses. It encourages activities the government wishes to promote. The subsidy depends on the amount of the goods or services provided. For example, the U.S. government has long supported the agricultural industry through cash subsidies given to farmers to help control the supply of essential crops....

Alternate names: Reverse takeover, reverse IPOAcronym: RTO For instance, if private company A wants to go public, it may not want to invest the time and money required upfront. Instead, it negotiates to purchase a controlling amount of publicly traded company B’s stock. When the transaction takes place, all of B’s shares are merged with A’s, the company keeps its publicly owned name, and the new owners control the company’s direction....

Tax credits are dollar-for-dollar reductions of your tax bill.Credits can reduce your tax burden better than tax deductions, because deductions only reduce your taxable income while credits reduce your tax bill.Most tax credits are nonrefundable, which means once they’ve reduced your tax liability to zero, you lose the rest of the credit. But some credits are refundable, and that can result in the IRS sending you cash for anything that’s left over after erasing your tax bill....

Learn more about uninsured CDs, how they work, and if one might be right for your investment strategy. Definition and Example of an Uninsured CD An uninsured CD is a CD that’s not federally insured by the FDIC or NCUA, which leaves you vulnerable to loss if the issuing bank or credit union fails. Ever since the Federal Deposit Insurance Act was enacted in September of 1950, the FDIC has insured the deposits of all of its member banks and savings associations....

To make matters worse, probate can take on a life of its own, dragging on for many months or even several years for some estates. A multitude of factors can contribute to a long and drawn-out process, from choosing an inept executor to the nature of a decedent’s assets. Estates With More Than a Few Beneficiaries Estates with more than two or three beneficiaries typically take longer to settle through probate because it takes longer to notify each and every beneficiary about what’s going on....

What Are My Biggest Obstacles? Ask yourself what is standing in the way of you reaching your financial goals or dreams. Is your debt stopping you from taking your dream vacation? Is your lack of savings making it hard for you to take the risk of applying for a new job? Is your lack of financial stability holding you back from buying a home or going to the next level in your relationship?...

Fast Facts About the U.S. Economy There are a few key components of the U.S. economy. These different economic indicators help us understand how the U.S. economy is doing. Gross domestic product (GDP): $25.66 trillion (nominal, third quarter of 2022)GDP growth rate: 2.6% (annualized rate, third quarter of 2022, first estimate)Real GDP per capita: $60,082 (third quarter of 2022)Gross national income: $23.4 trillion (2021)Unemployment rate: 3.7% (November 2022)Federal minimum wage: $7....

But sometimes one partner might use the allowance as a way to manipulate or control the other with money. It’s important to understand the difference between these two scenarios. When an Allowance Can Help Your Budget You and your spouse might agree to give each other a spending allowance, which is sometimes referred to as “mad money” or “pocket money.” It doesn’t cover things like normal daily expenses or bills....

401(a) plans are a type of money purchase plan. With a money purchase plan, account values are based on the contributions made and the gains or losses realized by plan investments. Employers are required to make contributions to money purchase plans on behalf of employees, while employee contributions are optional. A 401(a) money purchase plan must state the contribution percentage the employer is required to make. Here’s an example of how that works....

Let’s say you’re a furniture manufacturer and typically work with local vendors. One day you’re approached by a vendor in another country that offers you a great deal. You want to save some money, so you decide to move forward with them. In an effort to minimize the risk of doing business with a firm you are unfamiliar with, you ask the new vendor to back the contract with a bank guarantee....

What Is a Black Swan? Nassim Taleb’s three properties of black swans suggest: Willem de Vlamingh discovered black swans in Australia in 1697. Since a black swan had not been previously observed, Europeans believed that all swans were white. The Roman satirist Juvenal even referred to a black swan to describe something as impossibly rare, much like the modern-day phrase: “When pigs fly.” How a Black Swan Event Works The general premise of black swan theory is that unpredictable events can have severe economic or financial market consequences....

As the bonds on the lowest rung of the ladder mature, you have the choice of either reinvesting in bonds on the highest rung of the ladder or moving your investment out of the ladder altogether. As the bonds are reinvested, the yields may be higher or lower depending on interest rates at the time you reinvest (reinvestment risk). If interest rates are higher, you can reinvest at the higher rate and improve your return....