Investments
A share of ownership in a company that can pay dividends and fluctuate in value
Stocks
An individual retirement account that allows your investments to grow tax-free, where contributions are made with after-tax dollars.
Roth IRA
A required payment sent to the government based on individual earnings or corporate profits.
Income Tax
A decentralized digital currency that relies on blockchain technology rather than a central bank to record and verify transactions.
Crypto
The central bank of the United States, responsible for managing the nation's monetary policy and regulating banks.
Federal Reserve
A fixed-income instrument representing a loan made by an investor to a borrower (typically corporate or governmental).
A bond
An employer-sponsored retirement plan that allows employees to contribute a portion of their pre-tax paycheck, often featuring an employer match.
401(K)
A tax rate that increases as the taxpayer's taxable income increases, placing a higher percentage burden on higher earners.
Physical items purchased with the expectation that they will appreciate in value over time, such as rare coins, fine art, or trading cards.
Collectibles
A sustained increase in the general price level of goods and services over time, reducing purchasing power.
Inflation
An investment vehicle that pools money from many investors to purchase a diversified portfolio of stocks, bonds, or other securities.
Mutual fund
The age at which an individual can begin collecting full Social Security retirement benefits without any reduction for early retirement.
67
A standard amount that reduces your taxable income, which taxpayers can claim without needing to itemize individual expenses.
Standard Deduction
A retirement plan that commits the employer to paying a regular, guaranteed income stream to the worker upon retirement based on salary and years of service.
Pension
The value of the next best alternative given up when making a financial or economic decision.
Opportunity Cost
The spread of financial investments across various asset classes to minimize total risk.
Asset allocation
The percentage of pre-retirement income that an individual needs to maintain their standard of living after stopping work, commonly estimated at 70% to 80%.
Replacement rate
A direct dollar-for-dollar reduction of your total tax liability, making it more valuable than a tax deduction.
Tax Credit
A federal program that provides retirement, disability, and survivor benefits funded through payroll taxes.
Social Security
A market condition characterized by a single seller or entity dominating the entire supply of a good or service, limiting competition.
A Monopoly
A strategy that involves buying assets in one market and selling them in another to profit from temporary price differences.
Arbitrage
The minimum amount that retirement plan account owners must withdraw annually once they reach a specific age (currently 73).
Required Minimum Distribution
A tax imposed on the growth in value of assets like stocks or real estate when they are sold for a profit.
Capital Gains
An individual retirement account that allows contributions to grow tax-deferred, where contributions may be tax-deductible depending on income.
Traditional IRA
The graph curve illustrating the principle that as the price of a good increases, producers are willing to offer more of it for sale.
Supply Curve