Taxes
Taxes that are paid straight to the government
protection for potential losses
Insurance
Get goods/services now and pay later
Credit
What are the three levels of risk?
Aggressive, loser, conservative
Setting aside a portion of income each year/ may withdraw at 59.5 years old or once retired
Retirement fund
Taxes collected when a person pays for a good or service
Indirect taxes
Who is Medicaid vs Medicare for?
Medicare: are for seniors who are 65 or older
Medicaid: are for people with low or no incomes
Does not have to hacked by a deposit/ based off credit history & financial strength
Unsecured
What does IRA stand for?
Individual Retirement Account
What are the 5 types of categories for credit scores
Payment history, secured or unsecured, amount owed, length of credit, and new credit
What does a proportional tax rate system also know as flat tax do?
It keeps the tax rate the same for all income levels
Covers bodily injury, medical expenses, and property damage
car insurance coverage
What are the two types of credit
Credit cards & installment credit
No voting rights/ fixed dividends where payout will not change
Preferred stock
Put money in an account before taxes and get taxed when taken out the account
Traditional retirement account
Which income is how much you make after taxes?
Net income
The person you designate to receive your money or other possessions
Beneficiary
Used for cars, houses, mortgages, and student loans
Installment credit
Loaning money to the gov/ company, fixed interest rate (does not change), requirements is a minimum of money/time
Bonds
Not investigating everything you have in one area
Diversify
When income increases the percentage of taxes paid to government also increases
Progressive tax system
what are the four factors in cost of auto insurance?
personal circumstances, discounts, levels of coverages, and deductibles
Pre-paid credit cards/ putting a security deposit on it which will shave a limit
Secured
Voting privileges/ offers dividends which can raise or lower with company profit
Common stock
Deposits are made post tax and grow in the account tax free
Roth retirement account