What Is Legacy Planning? Legacy planning is a financial strategy that prepares people to bequeath their assets to a loved one or next of kin after death. These affairs are usually planned and organized by a financial advisor. Key Takeaways Legacy planning is a financial strategy used to create a plan for your estate after
What Is the Legal Lending Limit? The legal lending limit is the maximum dollar amount that a single bank can lend to a given borrower. This limit is expressed as a percentage of an institution’s capital and surplus. The limits are regulated by the Office of the Comptroller of the Currency (OCC). Key Takeaways A
What Is a Legal List? A legal list is a selection of eligible companies and investments, determined by local state governments, for institutions such as insurance companies and pension plans. Legal lists are also known as approved lists. How a Legal List Works Legal lists are generally low-risk, low-volatility investments that ensure the well-being of
What Is the Legal Rate of Interest? The legal rate of interest is the highest rate of interest that can be legally charged on any type of debt, and to which a lender must adhere. The legal rate of interest applies to all types of debt, although certain types of debt may carry a higher
What Is a Late Fee? The term late fee refers to a charge consumers pay when they fail to make a payment on a debt such as a loan or a credit card, or any other type of financial agreement such as an insurance or rental contract by the due date. When a borrower misses
What Is the Law of Diminishing Marginal Productivity? The law of diminishing marginal productivity is an economic principle usually considered by managers in productivity management. Generally, it states that advantages gained from slight improvement on the input side of the production equation will only advance marginally per unit and may level off or even decrease after a
What Is Lawful Money? Lawful money is any form of currency issued by the United States Treasury and not the Federal Reserve System. It includes gold and silver coins, Treasury notes, and Treasury bonds. Lawful money stands in contrast to fiat money, in which the government assigns value although it has no intrinsic value of
What Is the Law of Diminishing Marginal Returns? The law of diminishing marginal returns is a theory in economics that predicts that after some optimal level of capacity is reached, adding an additional factor of production will actually result in smaller increases in output. For example, a factory employs workers to manufacture its products, and
What Is the Law of Diminishing Marginal Utility? The law of diminishing marginal utility states that all else equal, as consumption increases, the marginal utility derived from each additional unit declines. Marginal utility is the incremental increase in utility that results from the consumption of one additional unit. “Utility” is an economic term used to
What Is the Law of Large Numbers? The law of large numbers, in probability and statistics, states that as a sample size grows, its mean gets closer to the average of the whole population. This is due to the sample being more representative of the population as the sample become larger. In a financial context
