Taxes
This is the form most U.S. workers receive from their employer, showing their annual earnings and taxes withheld
What is a W-2 form?
This initial payment is required to secure a mortgage loan
What is a down payment?
This is the government program that provides income to retired workers and their survivors
What is Social Security?
This is the term for the amount of money you owe on your credit card that you have not yet paid
What is a balance?
This type of savings account offers higher interest rates but typically requires a larger balance
What is a money market account?
This tax is paid when you make a profit from selling an asset
What is capital gains tax?
This type of mortgage has a fixed interest rate for the life of the loan
What is a fixed-rate mortgage?
This is the age at which you can typically start withdrawing from your 401(k) without penalty
What is 59½?
This is the penalty for not making a minimum payment on time
What is a late fee?
This type of account allows you to invest in stocks, bonds, and mutual funds while enjoying tax benefits for educational expenses
What is a 529 college savings plan?
This is the due date for filing your federal income tax return each year
What is April 15?
This type of insurance protects the lender if the borrower defaults on a mortgage
What is private mortgage insurance (PMI)?
This type of retirement plan allows individuals to contribute after-tax earnings and enjoy tax-free withdrawals in retirement
What is a Roth IRA?
This figure, expressed as a yearly percentage, is used by credit card companies to calculate the cost of borrowing when you carry a balance
What is the interest rate?
This investment option pools money from many investors to purchase a diversified portfolio of securities
What is a mutual fund?
Contributions to this type of retirement account may be tax-deductible
What is a Traditional IRA?
This is the term for the process of determining the value of a property for mortgage purposes
What is an appraisal?
This is the maximum contribution limit for a 401(k) plan in 2024 for individuals under 50
What is $22,500?
This is the term for the maximum amount you can charge on your credit card
What is a credit limit?
This term describes the profit you make when you sell an investment for more than you paid for it
What is a capital gain?
This IRS form is used to claim dependents and withhold the correct amount of federal income tax from your paycheck
What is a W-4 form?
This type of home loan features an initial period where monthly payments are lower because they do not include repayment of the loan’s principal
What is an interest-only mortgage?
This is the term for the strategy of taking money from various retirement accounts in a tax-efficient manner
What is tax diversification?
Carrying a balance on your credit card results in this kind of interest, which can significantly increase your debt over time
What is compound interest?
This type of savings vehicle involves lending money to a government or corporation in exchange for periodic interest payments and repayment of the principal at maturity
What is a bond?