Credit
This is the highest credit score possible
What is 850
This is a type of cost that fluctuates each month depending on where you choose to spend your disposable income
What is a variable expense
This is the act of spreading ones investments into many sectors of the market and various asset classes
What is Diversification / Diversifying your Portfolio
This is that typical date that your tax return is due each year
What is April 15th
This historical phenomenon involved individuals withdrawing large sums of money from banks when they believed they were failing, leading to them running out of cash
What is a Bank Run
This is the amount due on borrowed funds to avoid the accrual of interest
What is the Statement Balance
This is an amount of money set aside in a budget specifically for unexpected expenses or emergencies
What is an emergency fund
This is an account used to trade stocks and other investments on the open market
What is a Brokerage Account
This federal agency is responsible for collecting taxes in the United States of America
What is the Internal Revenue Service (IRS)
This type of security, often available from banking institutions, offers a return rate typically above other accounts but requires those funds to remain untouched for a set period
What is a Certificate of Deposit (CD)
This is the interest rate, often expressed as a percentage, that a balance left on a credit card will be subject to
What is the Annual Percentage Rate (APR)
What is 3-6 months
This type of account allows for deposits of up to $7,000 per year, which can grow tax-free until retirement
What is a Roth IRA
This is a reduction in the amount of your income which is subject to taxes; examples of such would be charitable donations, HSA contributions, Business Expenses
What is a Deduction
This is the amount up to which the Federal Deposit Insurance Corporation (FDIC) insures per account covered by their policy
What is $250,000
This is the factor that has the greatest impact on your credit score
What is your Payment History / Timeliness of Payments
This is the rule that splits your income into three categories: needs, wants, and savings
What is the 50-30-20 rule
This is the typical age at which you may begin making withdrawals from your 401K without being penalized
What is 59.5 years old
This is a tax imposed on wealth transferred from a deceased relative to the beneficiaries of their will
This type of account allows individuals to make deductible contributions that grow tax-free but must be used on qualifying healthcare expenses
What is a Securities-Backed Line Of Credit (SBLOC)
When paying off debts this strategy focuses on paying off the debts in the order of the highest interest rate first
What is the Debt Avalanche method
To earn trust, many investment companies make it clear that they are this type of advisor obligated to act in a client's best interest
What is a Fiduciary
The Federal Insurance Contributions Act (FICA) mandates this percentage of gross pay be deducted to fund Social Security and Medicare
What is 7.65%
What is a 529 Savings Account