Top 5 Things to Know About Auto Insurance When you are looking for auto insurance, there are a few things you should know. These things include comprehensive coverage, liability coverage, Collision coverage, Guaranteed asset protection, or gap insurance, and the differences between gap and full coverage. By taking a few minutes to review each of these topics, you’ll be able to make an informed decision about your auto insurance policy. Liability coverage Liability coverage is a form of auto insurance that pays for damages caused by another person’s vehicle or property. The policy can also pay for injuries to other
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Umbrella insurance is a type of liability insurance that provides additional coverage beyond the limits of your existing insurance policies, such as your auto or home insurance. It is designed to protect you from major claims and lawsuits, and can help cover costs such as legal fees and settlement payments. There are several benefits to having umbrella insurance. First and foremost, umbrella insurance provides extra protection against large financial losses. Let’s say you are involved in a car accident and the damages exceed the limits of your auto insurance policy. Without umbrella insurance, you would be responsible for paying the
What Is Retained Cash Flow (RCP)? Retained cash flow (RCP) is a measure of the net change in cash and cash equivalent assets at the end of a financial period. It is the difference between the incoming and outgoing cash for the period. Retained cash flow includes the remaining cash after an entity uses cash for expenses and returning cash to capital suppliers, such as paying off debt obligations or paying dividends. RCP is typically used to reinvest in positive net present value (NPV) projects, thereby growing the business. Key Takeaways Retained cash flow (RCP) is the net change in
What Is a Bull Put Spread? A bull put spread is an options strategy that an investor uses when they expect a moderate rise in the price of the underlying asset. The strategy employs two put options to form a range, consisting of a high strike price and a low strike price. The investor receives a net credit from the difference between the premiums of the two options. Key Takeaways A bull put spread is an options strategy that is used when the investor expects a moderate rise in the price of the underlying asset. An investor executes a bull
What Is a Wrap Account? A wrap account is an investment portfolio that is professionally managed by a brokerage firm for a flat fee that is charged quarterly or annually. The fee is based on total assets under management (AUM). It is comprehensive, covering all administrative, commission, and management expenses for the account. Wrap fees range from about 1% to 3% of AUM. For many investors, a wrap account proves to be less expensive over time than a brokerage account that charges commissions for trading activity. However, the buy-and-hold investor who rarely sells holdings might be better off with a
Stock investors constantly hear about the wisdom of diversification. This simply means don’t put all your eggs in one basket. Diversification helps reduce risk and generally leads to a better return on investment. That said, there are many ways to diversify. How you choose to do it is up to you. Your goals for the future, your appetite for risk, and your personality are all factors. Key Takeaways An aggressive portfolio takes on great risks in search of great returns. A defensive portfolio focuses on consumer staples that are impervious to downturns. An income portfolio concentrates on shareholder distributions. The speculative portfolio is not for