Types of Accounts
This type of account pays interest and allows limited withdrawals
What is a Money Market Account?
A retirement account where both employers and employees can contribute pre-tax dollars.
What is a 401(k)?
Bonds issued by the United States government.
What are Treasury Securities?
The risk that interest rates may rise or fall while you’re locked into an investment.
What is Interest Rate Risk?
The original sum of money you put into an account or still owe on a loan.
What is Principal?
A certificate issued by a bank for a fixed period of time, with penalties for early withdrawal.
What is a Certificate of Deposit or CD?
This federally-approved plan allows self-employed people to save for retirement.
What is a Keogh Plan?
Property such as land, houses, or office buildings.
What is Real Estate?
The ability to quickly convert a financial asset into cash.
What is Liquidity?
The total cost of credit, including interest and fees.
What are Finance Charges/Fees?
This account is an ownership share in a corporation.
What are Stocks?
Monthly monetary payments to retirees, disabled workers, or survivors.
What are Benefits or Social Security?
Profits made from selling investments at a higher price than paid.
What are Capital Gains or Market Gains?
The method to estimate how long it takes money to double at a given interest rate.
What is the Rule of 72?
This federal act requires payroll deductions for Social Security and Medicare.
What is FICA – Federal Insurance Contributions Act?
A pool of money used to invest in a variety of stocks and bonds.
What are Mutual Funds?
A financial contract where you receive payments for life or a set period after paying in.
What is an Annuity?
A fee charged when buying or selling shares of a mutual fund.
What is a Load?
The loss of value of an investment due to market conditions.
What are Market Losses?
A voluntary present of money or assets, often given without repayment expected.
What are Gifts or Inheritance?
An account established by a business to fund retirement benefits for its workers.
What is a Pension Fund?
A certificate of indebtedness issued by a government or corporation.
What is a Bond?
The benefit or return gained from an investment.
What is a Reward?
Money set aside for future use in easily accessed accounts.
What are Savings?
A portion of the wage or salary that has not had taxes withheld prior to being allocated to a retirement plan or other approved benefit.
What is Pre-Tax?