Taxes & Retirement
This type of retirement account allows for tax-free withdrawals in retirement.
What is a Roth IRA?
This economic indicator measures the overall economic output of a country.
What is Gross Domestic Product (GDP)?
The risk that an investment's returns could be different from what is expected, including the possibility of losing some or all of the original investment.
What is investment risk?
This financial strategy involves investing a fixed dollar amount into a particular investment on a regular schedule, regardless of the share price.
What is automatic investment?
A numerical expression based on a level analysis of a person's credit files, to represent the creditworthiness of an individual. Lenders use it to evaluate the probability of a person repaying debts.
What is a credit score?
In the United States, this form is used to report an individual's annual income and taxes to the IRS.
What is Form 1040?
This policy tool, used by central banks, influences economic activity by controlling the supply of money.
What is monetary policy?
This measure is used to assess the performance of an investment or to compare the efficiency of several different investments.
What is return on investment (ROI)?
This term refers to the total amount of money that would be received if all assets were sold and all debts paid.
What is net worth?
A loan that does not require any collateral to secure the loan. The approval of an unsecured loan is based on the borrower's creditworthiness rather than any form of collateral.
What is an unsecured loan?
This system is designed to provide retirement, disability, and survivors' benefits, funded by payroll taxes.
What is Social Security?
The law of supply and demand states that as the price of a good increases, the quantity demanded does this.
What does 'decrease' mean?
This term refers to the share of a company's profits distributed to shareholders, usually on a quarterly basis.
What are dividends?
A financial product that provides protection against financial losses from specified risks, such as accidents, theft, or illness, in exchange for regular payments known as premiums.
What is insurance?
A United States federal law designed to protect consumers from unfair billing practices and to provide a mechanism for addressing billing errors in "open-end" credit accounts, such as credit card and charge card accounts.
What is the Fair Credit Billing Act (FCBA)?
This type of tax is progressive, meaning the rate increases as the taxable amount increases.
What is progressive tax?
The study of how people use resources to satisfy their wants, including the production, distribution, and consumption of goods and services.
What is economics?
The fee paid to a broker or investment advisor for their services, often a percentage of the transaction value.
What is a commission?
This term refers to income received regularly from investments, work, or government benefits, such as pensions or Social Security.
What is regular income?
A type of loan in which the borrower uses the equity of their home as collateral. The loan amount is determined by the value of the property, and the borrower may receive the money in a lump sum.
What is a home equity loan?
This federal income tax form is used by individuals to amend a previously filed tax return.
What is Form 1040X?
This curve illustrates the relationship between tax rates and tax revenue, suggesting that higher taxes may not always lead to increased revenue.
What is the Laffer Curve?
A financial derivative that represents a contract sold by one party to another, offering the right to buy or sell an asset at an agreed-upon price.
What is an option?
Zero-based budgeting is a budgeting method where all expenses must be justified for each new period, starting from a "zero base," with every function within an organization being analyzed for its needs and costs rather than simply adjusting past budgets.
What is zero-based budgeting?
The act of combining multiple debts into a single, larger piece of debt, usually with more favorable payoff terms—such as a lower interest rate, lower monthly payment, or both.
What is debt consolidation?