Planning
Liquid assets available for emergencies or large, unexpected expenses.
What is a cash reserve?
Taxes that are on the appreciated value of an asset.
What is Capital Gains?
Referred to this when the stock market drops more then 20%
What is a bear market?
Document that states how you want your assets distributed but can be subject to probate.
What is a Will?
Public Pension system that is funded by wages.
What is Social Security?
This causes a currency to lose its purchasing power.
What is inflation?
37%
What is the highest tax bracket?
Debt investment that pays interest.
What is a bond?
Entity that instructs how your assets will be distributed and how and is never subject to probate.
What is a Trust?
Age that normal distributions can occur from an IRA without an IRS penalty.
What is age 59 1/2?
This a risk of running out of money in Retirement.
What is longevity risk?
Payroll tax that is deducted from your paycheck
What is the FICA tax?
Index that tracks 30 Large Blue Chip stocks.
What Is the Dow Jones Index?
Creates a large infusion of tax free cash to an estate after death.
What is Life Insurance?
Tax deferred retirement vehicle that allows you to contribute and deduct 25% of your income.
What is a SEP IRA?
Investing in various assets to mitigate risk.
What is diversification?
Deduction that all U.S. taxpayers get.
What is the Standard Deduction?
Exchange where most Tech stocks are traded on.
What is the NASDAQ?
Document that gives someone the authority to make decisions for someone else.
What is a power of attorney?
A major retirement expense from chronic illness
What is Long term Care?
This provision in with IRS allows you to take IRA money out before 59 1/2 without penalty.
What is a 72t Substantial Periodic Payments?
Taxed liked capital gains but comes from a corporation or stock.
What is a qualified dividend?
Looks like a mutual fund but trades like a stock.
What is an exchange traded fund?
Type of trust that protects assets from any creditors and shelters money from future estate taxes.
What is an irrevocable trust?
A vehicle that allows 55 plus business owners to contribute and deduct over $300k a year for retirement.
What is a cash balance plan or 412 ie?