Also known as liquidating distributions, a liquidating dividend is a return of the company's shareholders' capital investment.This concept is different than regular dividends, which are paid from the company's profits or retained earnings.When a company has more liabilities than assets, equity is negative and no liquidating distribution is made at all.
Once you understand this, you realize there are only three possible reasons to get insurance in any particular area. But what about things that you can’t afford but are really unlikely? Extended warranties from Best Buy on your new laptop? Especially if you already have a healthy ‘Stash of savings built up and could thus afford any unexpected expenses.
Do you get kidnapping insurance on yourself to cover up to a $3 million ransom? Since you’ll be driving only affordable used cars with no bank loans, get only liability insurance.
Maybe there’s a way we can cut that down and let you keep some money for yourself!
As part of buying the watch, she also bought an insurance policy which would buy them a new Rolex if it was stolen. If you’re an average consumer, you spend several thousand dollars per year on insurance.
Since you will be keeping yourself healthy for life, get only a “catastrophic” type of health plan where you pay ALL your own bills unless the cost exceeds $5-10k in a given year.