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What is an Income Trust?
Income trusts are a type of company that has been structured to pass through all earnings to shareholders. A trust is a legal entity, that seeks to use assets in the best interest of beneficiaries.
Some pooled investments are categorized as trusts, and they pass all income (and the tax implications) on to investors. Examples include a real estate investment trust (REIT), a royalty trust, a utility trust, or a business investment trust (also known as a master limited partnership, or MLP). Mutual funds can also fall into this category, but they are not necessarily designed just for income.
The other examples are based on companies with high cash flow. A qualified income trust (QIT), also called a Miller trust, is sometimes used in elder law practices to shield assets and to allow an individual to get on Medicaid. Such trusts come in handy in the event of long-term care needs.
An income trust might also refer to an irrevocable trust in which the grantor or owner of the trust cannot touch the principal amount of the trust anymore, which is bound to a beneficiary, but can receive income payments from the trust based on interest earned on the investments within the trust.
What is Life Expectancy?
Life expectancy may come into play in discussions of the economy, the health of a population, or for individual planning
What is a Decentralized Application?
The Ethereum platform allows developers to use it as a coding environment and distribution network for applications built on the blockchain
What is Bank-Owned Property?
If a bank forecloses on a home, and it does not sell at auction, it becomes bank-owned-property (or real estate owned)
What is a market-with-protection order?
A market-with-protection order allows investors to hedge against the change that prices will move unexpectedly before...
What is a Consolidated Tax Return?
A consolidated tax return is a single filing that covers several subsidiary companies and their parent company
What is Securitization?
Securitization is to turn an asset which would otherwise not be a liquid, tradable security, into one
What is Mutual Fund Classification According to the Price to Earnings Ratio?
Managing a fund based on P/E Ratio generally tends to put valuation ahead of other criteria when selecting stocks
What is a credit rating?
A credit rating is given to a company or debt issue after a disinterested third party evaluates the strength or cash flow
What is a covered call?
A covered call is when the writer or seller of a call option either owns the underlying security, or has a guarantee
How often do I check the performance of my portfolio?
Generally speaking, if your portfolio is run by professional investment managers, you should check the performance...