The main objective of a business requirements document is to clarify everything that needs to be addressed to make the project successful, with detailed requirements for each part of the project. A business requirements document (BRD) can be considered in two phases. In the first phase of a project, it’s a document that sets out all the requirements for the project, including costs, details on implementation, projected benefits, milestones, and timeline for implementation....

Certified checks are often used when you have to make a large purchase, such as a down payment on a house or a security deposit for a home you rent. Some private or smaller transactions may also require a certified check. For example, if you are buying a car from a private owner, they may ask for a certified check rather than a personal check to ensure payment. How Certified Checks Work If you’re paid with a certified check, that means the check writer visited a bank branch in person....

The financial service centers that provide these services are represented by Financial Service Centers of America (FiSCA), a national trade association. According to FiSCA, there are approximately 13,000 financial service centers in the United States. These centers conduct over 350 million transactions a year in various products to the tune of $106 billion. They provide a more limited set of services than traditional banks do but generally offer check cashing along with money orders, electronic bill payments, ATM access services, and payday loans....

Let’s take a closer look at what check registers are and how they work, so you can decide whether they might be a useful tool in your own financial management practices. Definition and Example of a Check Register Check registers are different from online bank statements because they show you on paper where your bank account balance stands in real time. This can make it easier for you to budget, keep track of how much you’re spending in different categories, and avoid overspending....

The amount of the commitment fee is often equal to a percentage of the amount that will be borrowed. For example, the commitment fee might equal 0.25% of the principal amount of the future loan. In this case, if the loan was for $100,000, the fee would be $250. While commitment fees are not charged on all loans, they are common on mortgage loans. That’s because it takes a long time from loan approval to closing, and both parties want to ensure the loan will be granted....

Introductory rates may apply only to a certain type of credit card debt—such as new purchases or balance transfers. However, many credit cards apply the introductory rate to both purchases and balance transfers. For example, the Wells Fargo Platinum Visa offers a 0% annual fee for 18 months on either of those types of credit card debt. Important Time Frames By law, introductory rates must last at least six months....

Alternate names: Credit assessment, credit analysis, account monitoring An example of a credit review is the process you go through when you apply for a mortgage. Lenders often conduct an extensive review of your credit history, income, and other factors to determine how likely you are to repay the loan, along with the risk you present to the lender. Generally, you have to provide detailed documentation during the application process to prove your financial stability, including recent tax returns; proof of income, such as paycheck stubs; bank and investment account statements; credit card statements and other debt records; and proof of any bankruptcies or foreclosures that may have occurred within the past seven years....

Alternate names: Release deed, release of deed of trust, deed of release of mortgage For example, a lender usually provides a deed of release after you’ve paid off your mortgage. How Does a Deed of Release Work? In a real estate context, let’s say you choose to pay off your 15-year mortgage early in only 10 years. Provided you’ve followed the requirements for pre-payments from your bank or other financial institution, you should be able to request a payoff amount that verifies exactly what is owed to release the entire debt....

If you received a monetary gift that you plan to use toward a mortgage down payment or closing costs, you must provide a gift letter to prove that the money is not a loan. During the underwriting process for a mortgage loan, lenders check a loan applicant’s financial status and verify they have the means to repay the loan. It’s common for newlyweds to receive money as a wedding gift....

Once you and your spouse determine that you wish to be legally separated, and in what state the separation is appropriate, you must both agree on the terms of your separation, have your separation agreement drafted, and execute your separation agreement. Your separation agreement highlights the terms of your separation and each spouse’s rights and responsibilities while living apart. Your agreement should outline how your marital assets and debts are divided, any provisions for spousal maintenance or alimony, and, if you have children, it will set out custody and child support terms as well....

A strategic plan usually forms the basis for an organization’s various budgets, which all come together in the master budget. It usually coincides with the fiscal year of the firm and can be broken down into quarters and further into months. If the firm plans for the master budget to roll from year to year, then it would usually add an extra month to the end of the budget to facilitate planning....

Alternate names: Low or no-doc loan; stated income, stated asset loans No income, no job, no assets (NINJA) loans do not impose this typical requirement. NINJA loans only require a lender to ask you how much you earn and what assets you own; they don’t verify your employment, income, or the existence of claimed assets. Before the 2008 financial crisis, many mortgage lenders issued NINJA loans. They provided mortgages to people without confirming that they had sufficient income and assets to make their payments....

Salaried employees are typically paid by a regular, bi-weekly, or monthly paycheck. Their earnings are often supplemented with paid vacation, holidays, healthcare, and other benefits. Employees who are paid a salary are often qualified as exempt employees, or employees who don’t qualify for overtime or minimum wage, according to the Fair Labor Standards Act (FLSA). Employees must earn at least $684 per week ($35,568/year), receive a salary, and perform particular duties (as defined by the FLSA) to be considered exempt from overtime requirements under federal guidelines....

A security interest reduces your lender’s risk since they can sell the collateral to recoup some of the money lost. Understanding a security risk will help you make better decisions when using it in a loam agreement. Definition and Example of a Security Interest A security interest is a legal claim your lender has to any collateral you put down to obtain a loan. If you agree to a security interest and eventually default on your loan, your lender has the right to take possession of your collateral....

Let’s take a closer look at what a stakeholder is, how a stakeholder is different from a shareholder, and why a business may want to pay attention to its stakeholders. What Is a Stakeholder? A stakeholder is a group or individual that is connected in any way to a business and that will be affected by, or be able to affect, the business and its operations. The connection can be a strong and close relationship like that of an owner, supplier, or customer....

Tickers are codes using letters and numbers. There may be up to four letters on the New York Stock Exchange. The Nasdaq uses up to five, but some may use less. The Coca-Cola Company, for instance, uses the ticker symbol “KO.” Companies can offer more than one type of stock, so there may be a need to have more than one ticker. Tickers can add an extra letter or use a period or hyphen within the code to let people know there are different stocks in one company....

Definition and Example of a Tax Swap A tax swap typically means selling a stock or security that’s underperforming and claiming a capital loss on the transaction. You can carry this loss over and subtract it from your taxable capital gains income if you then purchase a similar, better-performing security, and proceed to sell that to realize a capital gain. Tax-loss harvesting is another term for this type of activity. But a tax swap can also describe a taxing authority that reduces one type of tax and increases another in an effort to raise revenue without creating an undue burden on taxpayers....

Definition and Example of an Indexed Rate An indexed rate is a type of interest rate linked to a benchmark that fluctuates based on market conditions. Indexed rates are tied to benchmarks such as U.S. Treasury bills and the prime rate. Lenders use these benchmarks to establish an interest-rate baseline for variable-rate products including ARMs, lines of credit, student and auto loans. For example, if you have an ARM, it has a variable interest rate tied to an index or benchmark— most likely the prime rate....

The contributions made to a Roth IRA are made with money that has been taxed, but the distributions made to both the original owner and the inherited owner are not taxed. The process of dealing with an inherited IRA depends on what type of beneficiary you are. As you’ll learn here, spouses and certain exempted beneficiaries have several options for how they receive distributions from inherited Roth IRAs. Let’s look at those options and how they work....

You may have a degree of control over your account in some cases so you can choose how to direct portions of your fund. There’s a wide range of choices with regard to types of holdings, as well as how hands-off or hands-on you want to be. An Example of an IRA You must fund your IRA after you open it by contributing money into it. That money is then invested for you into assets that are typically chosen by the custodian of your account....