A defined contribution plan that may be established by a company for retirement. Employees may allocate a portion of their salaries into this plan, and contributions are excluded from their income for tax purposes (with limitations).
A defined contribution plan that may be established by a nonprofit organization or school for retirement. Similar to a 401(k), contributions and earnings compound tax deferred.
The value of property at the time it was stolen or destroyed, arrived at by subtracting depreciation from the replacement cost of the item.
An interim calculation in the computation of income tax liability. It is computed by subtracting certain allowable adjustments from gross income.
A person appointed by the court to settle an estate when there is no will.
The return from an investment after the effects of taxes have been taken into account.
A mutual fund whose primary investment objective is substantial capital gains. Seek higher returns but involve a higher degree of risk.
A method of calculating income tax that disallows certain deductions to ensure that individuals with tax preferences do not escape all federal liability.
An insurance-based contract that provides future payments at regular intervals in exchange for current premiums.
Anything owned that has monetary value.
The process of repositioning assets in a portfolio to maximize potential return for a particular level of risk.
A mutual fund whose objective is a balance of stocks and bonds to reduce volatility.
When the stock market appears to be declining overall.
A person named in a life insurance policy, annuity, will, or trust to receive a financial benefit upon the death of the owner.
Common stock of a company with a long history of profitability and consistent dividend payments.
Evidence of a debt in which the issuer promises to pay bondholders a specified amount of interest and repay principal at maturity.
When the stock market appears to be advancing overall.
The difference between the sales price and the purchase price of a capital asset.
Short-term investments, such as U.S. Treasury securities or CDs, that can be readily converted into cash.
A credential granted to individuals who complete a comprehensive curriculum in financial planning and ethics.
Federal law requiring employers to offer terminated employees the opportunity to continue health insurance coverage at their own expense.
A unit of ownership in a corporation.
Interest computed on the principal and on the accrued interest.
The U.S. Department of Labor's main indicator of inflation.
The amount of a claim that the insured must pay before the insurance company covers the rest.
A qualified retirement plan under which a retiring employee receives a guaranteed retirement fund, usually in installments.
A retirement plan where employer or employee contributions are fixed, but retirement benefits depend on investment performance (e.g., 401k).
Investing in different companies or asset classes to help manage investment risk.
A portion of earnings distributed in cash by a corporation to its stockholders.
Investing a fixed dollar amount at regular intervals to lower the average cost per share over time.
The value of a person's ownership in real property or securities.
The Employee Retirement Income Security Act; a federal law covering aspects of employee retirement plans.
Federal and state taxes imposed on the value of an estate left to others upon death.
A person named by a will to carry out the directions and requests of the decedent.
A tax-favored account that allows for tax-deferred growth of retirement savings.
An increase in the price of products and services over time.
A trust that may not be modified or terminated by the trustor after its creation.
Any claim against the assets of a person or corporation, such as debt or legal obligations.
How quickly and easily an asset or security can be converted into cash.
An advance medical directive outlining which medical procedures you want used to prolong life in the event of terminal illness.
The amount of tax paid on an additional dollar of income.
The total market value of a company’s outstanding shares.
A collection of securities managed by an investment company with funds from a group of investors.
All the investments held by an individual or a mutual fund.
The payment required to initiate and continue an insurance policy.
The court-supervised process in which a decedent's estate is settled and distributed.
The cost of replacing a lost or destroyed item without factoring in depreciation.
The chance that an investor will lose all or part of an investment.
A nondeductible IRA that allows tax-free withdrawals when certain conditions are met.
Evidence of an investment, such as stocks, bonds, or options.
An employer-sponsored plan where contributions are made to an employee's IRA.
Earnings that grow untaxed in certain accounts until they are withdrawn.
A legal entity in which one party holds the right to manage property for the benefit of someone else.
Life insurance that offers a death benefit and accumulates cash value at a fixed rate.
A legal document declaring a person's wishes concerning the disposition of property after death.
A bond that makes no periodic interest payments but is sold at a steep discount from its face value.
