Employee Benefits
This is the "free money" your employer adds when you contribute to your 401(k)
What is employer match?
Money set aside for surprise expenses, often 3-6 months of living costs.
What is an emergency fund?
This type of fund aims to match the market, not beat it, and typically has a low expense ratio.
What is an index fund?
The value that your beneficiaries receive tax-free when you die and have a life insurance policy.
What is the death benefit?
This legal document says who gets your assets, specifies your wishes, and can name a guardian for kids.
What is a will?
This schedule determines how long you must stay before the company's contributions fully become yours.
What is a vesting schedule?
Outlines how money will be spent and saved?
What is a budget?
Spreading money across many assets to reduce risk is known by this term.
What is Diversification?
This is the amount you pay before insurance starts sharing costs.
What is the deductible?
Eligible expenses that taxpayers can subtract from their Adjusted Gross Income (AGI) to reduce their taxable income.
What are itemized deductions?
This form of employee compensation grants employees the right to buy company stock at a predetermined price.
What are Employee Stock Options?
Coordinating cash flow, risk management, investing, taxes, retirement, and estate considerations into an actionable document.
What is a comprehensive financial plan?
Holding an investment over a year may qualify gains for this favorable treatment.
What are long-term capital gains?
Insurance that protects bank deposits up to $250k per depositor, per bank, per ownership category.
What is FDIC insurance?
This legal document lets an appointed person act on your behalf for finances if you’re incapacitated.
What is a durable power of attorney (POA)?
The waiting period before disability insurance benefits begin.
What is an elimination period?
Two popular debt repayment strategies: pay smallest balances first or highest interest rates first.
What are the snowball and avalanche method?
The "Rule of 72" can be used to estimate how long it will take for your money to do this at a given annual rate of return.
What is double?
Insurance that is designed to cover costs associated with daily living activities due to aging, illness, or disability (e.g. dementia)
What is Long Term Care Insurance?
A tax provision where an asset's cost basis (original purchase price) is adjusted to its fair market value on the date of the owner's death.
What is a step-up in basis?
A health-related account with triple tax advantages when used for qualified expenses.
What is an HSA?
Tax advantaged retirement accounts provide an investor with the option of making these 2 different types of contributions.
What are Pre-Tax & Roth?
These two types of securities represent both sides of a company's balance sheet represented as Equity vs Fixed Income.
What are Stocks & Bonds?
Often $1–$5M of extra liability protection that sits on top of auto/home policies.
What is an umbrella policy?
Choosing this business status can reduce self-employment tax by paying a reasonable salary and taking distributions; it requires timely filing Form 2553.
What is an S-corporation election?