Because of their relative security, cashier’s checks are typically used for high-dollar transactions and payments between entities that don’t know each other. Instead of hoping that your buyer has funds available in their checking account, you can be reasonably confident that a bank has enough cash on hand to pay. Alternate names: Bank drafts, bank check, teller’s check How Does a Cashier’s Check Work? Banks and credit unions have the money in hand before printing a cashier’s check....

A CDFA looks at both the short- and long-term financial value of your assets. A CDFA can help you ensure you’re getting your fair share of the assets in the divorce. They will consider the present situation as well as your future goals when helping you and your lawyer determine what you want from a settlement. They use specialized software programs to help them analyze assets like: Real propertyExpensesRetirement accountsPensionsLife insurance...

cocorattanakorn / Getty Images While a committed credit line requires the lender to continue to provide funds to the borrower for a designated period of time, an uncommitted credit line does not. With an uncommitted credit line, the lender may put an end to the flow of funds if they believe it’s risky to lend to you due to market conditions. Alternate name: Committed credit facility For example, a business may keep a committed line of credit on hand to guard against a sudden drop in revenue due to market conditions....

Clearing errors on your credit report through direct disputes is one of the best things you can do for your financial health and credit score. Here’s a closer look at how direct disputes work. Definition and Examples of a Direct Dispute A direct dispute occurs when you contact a creditor or lender because you believe they’ve given the credit bureaus incorrect information about your account. The purpose of filing a direct dispute is to get errors removed from your credit report (and hopefully boost your score)....

While insurers might not have an industry-wide definition of high-risk drivers, they’re always assessing drivers for risk, said Frank Jones, an independent insurance agent and partner at Mints Insurance in New Jersey. Jones works with insurance lines in 25 states and often looks for insurers who will take on high-risk drivers. In general, a high-risk driver is someone with: A major violation, such as speeding or a DUI conviction. Multiple, frequent minor violations, such as tickets or accidents....

The green card test is pretty black and white. Did the Immigration and Naturalization Service award you lawful permanent residency and give you a green card? If so, you pass the test. The substantial presence test is actually two separate tests. You must be present in the U.S. for at least 31 days during the current year and 183 days during the past three years. However, you have to count your days in the following way:...

NOW accounts were created in response to a Great Depression-era law called the Banking Act of 1933. This rule kept banks from paying any interest on deposits that could be payable on demand. The goal was to avoid another bank run and keep banks safe and secure for consumers. Bankers started looking for ways to get around the rules and attract more customers. In the 1970s, the CEO and president of Consumer Savings Bank in Worcester, Massachusetts, led the charge for banks to be able to offer checking accounts that paid interest....

Alternate name: Payoff statement How Payoff Letters Work When you want to pay off a loan all at once, it’s challenging to predict exactly how much you need to pay. Interest charges get added to your loan balance every day (or every month), so the amount you owe changes constantly. If you just try to write a check using the loan balance shown on your last statement, there’s a chance you’ll fail to pay everything you owe....

Definition and Examples of Perfected Liens A perfected lien—a hold against real or personal property—is one that has met all the applicable criteria to become legally enforceable. These holds grant an interest in the property in the event you fail to repay the debt. In essence, the lien is a security interest in your property; this means you cannot dispose of or sell the property without repaying your debt. A perfected lien legally guarantees that security interest....

Financial institutions providing ATM and payment cards will usually mail you a letter containing your PIN once you open your account. However, you might get a PIN issued in person. Any PIN letter usually arrives separately from the card itself for security purposes. Online payment services such as Venmo or Cash App may also require you to come up with a PIN as an extra security measure. To be effective for security, the PIN needs to be unique and safeguarded to reduce the chance of it being compromised....

When you enroll in a marketplace plan, you can choose to receive your premium tax credit either in advance to lower your monthly premium or when you file your tax return for that tax year. If you accept it in advance, the marketplace calculates your estimated credit amount based on the application information. If you use less than your allotted tax credit, you’ll get a refundable credit on your tax liability when you file....

As an investor, you have a right to receive a proxy statement for each company of which you’re a shareholder. In this article, you’ll learn what’s included in proxy statements, why they’re important, and what to do with the information in them. Definition and Examples of a Proxy Statement A proxy statement is a document companies send to their shareholders to let them know about matters to be voted on at the next shareholder meeting, as well as when and where the meeting will take place....

What Is a Roth 401(k)? A Roth 401(k) is exactly what it sounds like: it’s a combination of a 401(k) and a Roth IRA. Like a 401(k), it’s offered by an employer. Contributions are taken out of your paycheck and can be invested for retirement in a number of defined investment choices. Like a Roth IRA, contributions are made after-tax (unlike pre-tax 401(k) contributions), but the money is never taxed again, even when withdrawn at retirement or after age 59 1/2....

Review what’s included in a salary range, salary range information for job applicants and employers, and the factors that impact a salary range. What’s Included in a Salary Range A salary range includes a low, mid-point, and maximum salary. For example: $40,000 (bottom of the range)$45,000 (median)$50,000 (maximum)Range: $40,000 - $50,000 Job Applicant Salary Ranges From a job seeker perspective, a salary range is the amount of compensation a candidate would accept for a position....

Trades can either be long or short, and a short position is the opposite of a long position. In a long position, an investor buys shares with the hopes of earning a profit by selling it later after the price increases. To create a short position an investor typically sells shares that they have borrowed in a margin account from a brokerage. However, the term short position can also have a broader meaning and refer to any position an investor takes to try to earn a profit from an expected price decline....

A SPAC is a type of “blank check company,” which is a firm in its development stage that doesn’t have a specific business purpose yet. Many blank check companies are working to either build capital as a startup or merge with another company. How Does a SPAC Work? A SPAC is a type of shell company that doesn’t have any business operations at the time of its formation, nor does it own any underlying assets other than cash....

With a relevant tax treaty in place, someone who is a resident of a country other than the United States may be able to reduce or exempt some of their income earned in the U.S. from U.S. income taxes, but they would still pay taxes to their home country. Conversely, a U.S. resident who earns income in another country may be eligible to avoid paying some taxes to that country if it has a tax treaty with the U....

Tycoons typically come from prominent industries and, in the past, dominated steel, railroad, and production. Today, the term “tycoon” is often used to refer to someone who runs a tech or internet company. Definition and Example of a Tycoon A tycoon is a business leader, entrepreneur, or individual who has built substantial wealth and power through their business dealings. The term was adapted from the Japanese word “taikun,” which was used to describe the shogun....

Voiding a check “disables” the check so that it can’t be used as a blank check. In other words, a thief who steals a voided check can’t make the check out to himself, enter a large amount, and sign it. Example of a Voided Check For example, if your company’s payroll department needs a check from you to set up direct deposit, you can provide a voided check. Then you know that no one would be able to alter the check and spend it, because it has been voided....

This target is some percentage of the federal poverty level. In 2021, the poverty level for a family of four is $26,500. The United States has six major welfare programs with eligibility based on income and local poverty levels: Temporary Assistance for Needy Families (TANF) Medicaid Supplemental Nutrition Assistance Programs (SNAP or “food stamps”) Supplemental Security Income (SSI) Earned Income Tax Credit (EITC) Housing assistance Every program has other eligibility requirements as well....