Any drivers out there who transferred an automobile insurance policy from one state to another probably found out real quick that different states have different laws on insurance coverage provisions…and this can affect how much we pay. For example, some states require drivers to carry uninsured motorist coverage, and some do not. Some states have lower minimum coverage amounts than others. Some states require comprehensive collision coverage while others only require liability coverage. And on and on.
But no matter where we live, no matter where we drive, and no matter where our car is insured, we always have to have at least the minimum amount of coverage required by that state. The “financial responsibility clause” is part of our insurance policy, and it states that our insurance company promises that our policy always meets or exceeds those minimum standards, even if we happen to be driving through a state with different requirements from our own. It’s a pretty good deal, and the best part is that it’s already there, hiding deep within our auto insurance policy and waiting for its time to shine.
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Finance: What is Compensation: Advisory ...2 Views
Finance a la shmoop what are advisory fee limits? well they're basically a
price ceiling above which financial advisors can't go yeah I can't go they [Financial advisors in an elevator and hit price ceiling]
can't touch that ceiling you know like hammer time, can't touch this...
so when you invest in a mutual fund you pay two fees there's a commission
and there's an annual management fee usually based on the assets you have
with them under management like maybe it's one percent on the first hundred [Asset rises]
grand that you have and then half a percent above a million or whatever
but there is a third and insidious fee element in the world called advisory
fees like how do you choose which fund to buy well if you have a financial
advisor they'll walk you through the lists of mutual funds out there and [Ice cream flavors appear]
index funds and all other set of funds as well well they're like a gazillion of
them and then that advisor will charge you for their time in some form right
someone's got to pay for their beach house well if you start adding up all
the fees you're paying for arguably no better performance than had you just [Itemized list of fees appear]
logged onto schwab.com or fidelity.com and bought an index fund hmm
well then you're gonna start to pause here it starts to be a big number in
those fees that eat meaningfully into your investment returns most buyers of [Pacman fees eating up money]
mutual funds are not financial gurus yeah not like that they're doctors and
lawyers and plumbing parts distributors and they really don't have a
sophisticated understanding of just how badly they could get taken by
unscrupulous financial advisors so the industry placed a series of structured
limits to keep the non gurus safe from the financial predators when it comes to
compensation and fee limits you know on advisory services and predators like [Tiger walking by]
this guy
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What does it mean to have fiduciary obligation? To have a fiduciary obligation means that a third party has been given the trust and responsibility...