Vocab List 1
Which of these is illegal?
Tax Liability
Tax Evasion
Tax Levy
Tax Evasion
funded by contributions from employees, employers, and self-employed people. This tax is now 13.2%
Social Security Benefits
repaid in a series of fixed scheduled payments rather than lump sum
Installment Loan
selling an asset for more than the purchase price
Capital Gain
IRS attempt to verify the accuracy of a return
Tax Audit
a cash balance plan (401k), traditional defend contribution plan, Keogh Plan is less common
Retirement Plans
using borrowed money to magnify funds
Leverage
initial amount that is not covered by the policy and must be paid
Deductible
ownership in a corporation
Stocks
Federal Deposit Insurance Corporation protects depositors (also known as...)
FDIC
the difference between individual, total assets, and his or her total liabilities
Net Worth
Purpose is to protect yourself from economic loss! Transfer risk of serious losses. Life insurance is financial security for dependents at your death.
Insurance
recorded as a liability at the current outstanding balance
Loans
collection of investments assembles to meet a common investment goal principle balance
Portfolio
coverage for damage to an insured automobile from perils with few exceptions other than collision
Comprehensive Auto Insurance
equally paid by employers and employees; Federal Insurance Contributions Act
Tax Levy under FICA
who the policy will be paid to upon death
Primary Beneficiary
pay off the entire balance on or before the due date
Interest Free
If you purchase a stock at $100 and it's trading at $150, your return is $50
Return on Investment
sum of money the home buyer pledges with the seller to indicate the intent of purchase
Earnest Money
If you withdraw from most pension plans before 59.5, you will have to pay this penalty....
10%
Name 1 part of Individual Balance Sheet.
Assets, Liabilities, and Net Worth
legal claim that allows creditors to liquidate collateral
Lien
reason to invest is to provide diversification of invested funds
Mutual Funds
Dividing a portfolio among different classes of securities in order to preserve the capital by protecting the portfolio