Tag: house

Consumer Price Index For Urban Wage Earners And Clerical Workers – CPI-W definition explanation

What is Consumer Price Index For Urban Wage Earners And Clerical Workers – CPI-W?
A variation of the consumer price index, as complied by the Bureau of Labor Statistics in the United States, that measures the consumer prices certain workers are exposed to. The index is primarily used on an annual basis, to reflect changes in the costs of benefits paid to Social Security beneficiaries.

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) is updated monthly – usually with a one-month lag. Read more for examples and further explanation including related video clips and also comments
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Family Offices definition explanation

What is Family Offices?
Family offices are private wealth management advisory firms that serve ultra-high net worth investors. Family offices are different from traditional wealth management shops in that they offer a total outsourced solution to managing the financial and investment side of a affluent individual or family. For example, many family offices offer budgeting, insurance, charitable giving, family-owned businesses, wealth transfer and tax services. Read more for examples and further explanation including related video clips and also comments
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Bank Confirmation Letter – BCL definition explanation

What is Bank Confirmation Letter – BCL?
A letter confirming that a line of credit has been secured from a financial institution or bank. The bank confirms that a person is eligible for a specified amount of borrowed funds to be used for a predetermined purpose. Read more for examples and further explanation including related video clips and also comments
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Real Estate Investment Trust – REIT definition explanation

What is Real Estate Investment Trust – REIT?
A security that sells like a stock on the major exchanges and invests in real estate directly, either through properties or mortgages.

REITs receive special tax considerations and typically offer investors high yields, as well as a highly liquid method of investing in real estate.

Equity REITs: Equity REITs invest in and own properties (thus responsible for the equity or value of their real estate assets). Their revenues come principally from their properties’ rents.

Mortgage REITs: Mortgage REITs deal in investment and ownership of property mortgages. These REITs loan money for mortgages to owners of real estate, or purchase existing mortgages or mortgage-backed securities. Their revenues are generated primarily by the interest that they earn on the mortgage loans.

Hybrid REITs: Hybrid REITs combine the investment strategies of equity REITs and mortgage REITs by investing in both properties and mortgages. Read more for examples and further explanation including related video clips and also comments
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Hobby Loss definition explanation

What is Hobby Loss?
A non-deductible loss incurred as a result of doing an activity for personal pleasure instead of for profit. A taxpayer cannot deduct the hobby loss as a business loss. A “”hobby loss rule”” is used to determine if an activity is a hobby or a business. Read more for examples and further explanation including related video clips and also comments
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Needs Approach definition explanation

What is Needs Approach?

A method of calculating how much life insurance is required by an individual/family to cover their needs (i.e. expenses). These include things like funeral expenses, legal fees, estate and gift taxes, business buyout costs, probate fees, medical deductibles, emergency funds, mortgage expenses, rent, debt and loans, college, child care, private schooling and maintenance costs. The needs approach contrasts the human-life approach. Read more for examples and further explanation including related video clips and also comments
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Escrow definition explanation

What is Escrow?
A financial instrument held by a third party on behalf of the other two parties in a transaction. The funds are held by the escrow service until it receives the appropriate written or oral instructions or until obligations have been fulfilled. Securities, funds and other assets can be held in escrow. Read more for examples and further explanation including related video clips and also comments
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