Employee Benefits
This is the "free money" your employer adds when you contribute to your 401(k)
What is employer match?
Money set aside for surprise expenses, often 3-6 months of living costs.
What is an emergency fund?
This type of fund aims to match the market, not beat it, and typically has a low expense ratio.
What is an index fund?
The value that your beneficiaries receive tax-free when you die and have a life insurance policy.
What is the death benefit?
This legal document says who gets your assets, specifies your wishes, and can name a guardian for kids.
What is a will?
This schedule determines how long you must stay before the company's contributions fully become yours.
What is a vesting schedule?
The road map you follow that outlines the necessary steps to reach your financial goals.
What is a financial plan?
Commonly offered in Employer Sponsored Retirement Plans, these types of investments automatically adjust their Risk Profile to become more conservative over time.
What are Target Date Funds?
This is the amount you pay before insurance starts sharing costs.
What is the deductible?
Eligible expenses that taxpayers can subtract from their Adjusted Gross Income (AGI) to reduce their taxable income.
What are itemized deductions?
This form of employee compensation grants employees the right to buy company stock at a predetermined price.
What are Employee Stock Options?
This discipline helps you keep your money under control and know where to save, what to spend, and where it all went.
What is budgeting?
Spreading money across many assets to reduce risk is known by this term.
What is diversification?
This legal document lets an appointed person act on your behalf for finances if you’re incapacitated.
What is a durable power of attorney (POA)?
This coverage can protect your income if you can’t work due to illness or injury. Has a waiting period before you can begin collecting income.
What is Disability Insurance?
Spreading money across many assets to lower risk is known by this term.
What is diversification?
The "Rule of 72" can be used to estimate how long it will take for your money to do this at a given annual rate of return.
What is double?
A tax provision where an asset's cost basis (original purchase price) is adjusted to its fair market value on the date of the owner's death.
What is a step-up in basis?
This type of personal savings account comes with a triple tax advantage, and is used to pay for qualified medical expenses; is offered to individuals enrolled in a High-Deductible Health Plan.
What is an HSA?
Tax advantaged retirement accounts provide an investor with the option of making these 2 different types of contributions.
What are Pre-Tax & Roth?
These two types of securities represent both sides of a company's balance sheet represented as Equity vs Fixed Income.
What are Stocks & Bonds?
Often $1–$5M of extra liability protection that sits on top of auto/home policies.
What is an umbrella policy?
Choosing this business status can reduce self-employment tax by paying a reasonable salary and taking distributions; it requires timely filing Form 2553.
What is an S-corporation election?