Taxes
The branch of the government that is responsible for collecting taxes
IRS
Marketplace where buyers and sellers come together to trade stocks, which represent ownership in a publicly traded company.
A retirement account sponsored by your employer
401(k)
The cost that you pay, on an annual or monthly basis, in exchange for insurance coverage
Premium
When something loses value over time
Depreciation
The average deduction for people who are filing the same status as you (single, married etc)
Standard Deduction
When a company decides to payout a portion of its profits to shareholders.
Dividend
This type of retirement fund will usually guarantee employees a specific amount of money per year when they retire
Pension
The amount you need to pay each year for covered services out of your own pocket before your insurance company begins to help out.
Deductible
Less than three years old, has low mileage and has no history of major damage
Certified Pre-owned
Freelance workers or independent contractors pay this tax
Self-employment Tax
A type of mutual fund that hopes to mirror the performance of a specific index.
Index Fund
A retirement account that is similar to a 401(k) except it is not sponsored by an employer, there is no match and the contribution limits are lower.
IRA
The services that your insurance provider agrees to help pay for in your specific insurance policy.
Covered Services
Mortgage
The actual percentage of your taxable income that goes toward taxes.
Effective Tax Rate
Shows you the percent of your original investment that you have made or lost.
Return on Investment
An all-in-one diversified investment option that automatically reallocates your funds for you based on the date you hope to retire.
Lifecycle Fund
A percentage of covered medical expenses that you will need to pay in certain situations.
Coinsurance
Spending so much money on your monthly housing costs that you have nothing left over to put into savings, investments or retirement.
House Poor
The amount of money you owe the government is based on this and is not the same thing as your salary.
Taxable Income
The money you pay the mutual fund company to manage your money.
Expense Ratio
An employer-sponsored retirement savings plan that allows participants to make after-tax contributions in exchange for tax-free growth and tax-free withdrawals in retirement.
Roth 401(k)
The maximum amount of money you'll spend for medical services in a year before your insurance provider steps in to pay 100% of covered costs.
Out-of-pocket maximum
The portion of a homes value that you own outright, calculated by subtracting the amount you owe on the mortgage from the home's current market value.
Equity