Key Takeaway: Mezzanine investment is a hybrid investment that combines elements of debt and equity financing, often used by businesses to fund growth, acquisitions, or other strategic initiatives. Mezzanine investment provides higher returns than senior debt while being less risky than common equity financing. It is junior to senior debt, meaning it is repaid after…
Key Takeaway: Netspend asks for a Social Security Number (SSN) to comply with government regulations, which require financial institutions to verify the identities of their customers. This helps prevent financial crimes such as money laundering, identity theft, and terrorist financing. Providing a SSN also helps protect the customer’s identity by ensuring that no unauthorized accesses…
Key Takeaway: Real Estate Mortgage Investment Conduit (REMIC) is a type of investment vehicle that pools mortgages and issues multiple classes of securities, using pass-through taxation to distribute profits to investors. REMICs offer advantages such as diversification, steady cash flow, and potential tax benefits, but also come with risks such as interest rate and prepayment…
Key Takeaway: Setting up investment accounts in QuickBooks is essential to accurately track and manage investments. This involves creating an investment account and adding investment transactions to the account. Recording stock investments in QuickBooks requires adding stock purchase transactions, recording dividend income, and adjusting for stock splits. This helps to maintain accurate records of stock…
Key Takeaway: Impact investments are investments made with the intention of generating positive social or environmental impact alongside financial returns. They are made across diverse sectors, such as renewable energy, affordable housing, and sustainable agriculture. Impact investment strategies can focus on specific social or environmental issues. Social impact investing addresses social inequalities and aims to…
Key Takeaways: Wells Fargo Investment Banking has a rich history and reputation in the financial industry. With diverse services offered, they bring a wealth of expertise to their clients. Their client-focused approach is evident through their tailored solutions that cater to different client needs, emphasizing relationship building and trust. As a technology-driven bank, they provide…
Key Takeaways: Side pocket investments are a type of investment where illiquid assets, such as private equity funds or hedge funds, are separated from a fund’s liquid investments to minimize risk and preserve value. One of the main advantages of side pocket investments is that they allow for better risk management by reducing exposure to…
Key Takeaway: Social Security benefits can be subject to federal income tax: It’s important to understand the tax implications of your Social Security benefits to avoid unexpected tax bills. Requesting tax withholding from your Social Security benefits can help you avoid owing taxes: You can choose to have taxes withheld from your Social Security benefits…
Key Takeaway: Real estate investment is a tangible asset that provides long-term financial stability: Unlike other investment options, real estate investment is a tangible asset that provides a reliable source of passive income. It offers long-term financial stability and acts as a hedge against inflation. Appreciation in value is a distinct advantage of real estate…
Key Takeaways: Your 20-year military pension is calculated based on your years of service, salary basis, and type of retirement. The longer you serve, the more money you will receive. Additional benefits include healthcare benefits, survivor benefit plans, and disability compensation. Social security benefits may also be available, but they may be reduced due to…
Key Takeaway: Creating a my Social Security Account is the easiest way to find out your Social Security retirement amount. Here you can view your Social Security Statement, which provides an estimate of your retirement benefits based on your earnings history. If you don’t have access to the internet, you can request a paper copy…
Key Takeaway: The Social Security Trust Fund was established in 1935 to provide a source of income for retired and disabled workers in the United States. The U.S. government began borrowing from the Social Security Trust Fund in 1937 to finance various programs and initiatives, with the intent to pay back the borrowed funds later….