Cruising with Cars
A "long-term" car loan usually results in lower monthly payments but a higher total cost of this.
Interest
A specific type of long term loan used to purchase a house or real estate
Mortgage
This type of auto insurance covers damage to your vehicle caused by "acts of God" or non collision events, such as theft, fire, hail, or hitting a deer.
Comprehensive
This government agency is responsible for collecting federal taxes and enforcing tax laws
IRS (Internal Revenue Service)
This term refers to the uncertainty about a potential financial loss
Risk
This refers to the duration of the loan, such as 60 or 72 months.
Loan Length (or Term)
The large, upfront sum of money paid at the time of purchase to reduce the principal of a home loan
Down Payment
This coverage pays for damage or injuries you cause to others in an accident; it is often required by law
Liability
An amount you can subtract from your gross income to lower your total taxable income
Tax Deduction
An unexpected reduction or disappearance of value, such as a fire destroying a home
Loss
This is the original amount of money you borrow for a car loan, excluding interest.
Principal
This professional helps you evaluate how a home purchase fits into your long term wealth goals and ensures you don't become "house poor."
Financial Advisor
This type of auto insurance covers damage to your own vehicle resulting from a crash with another car or object
Collision
You fill out this form when starting a new job to determine how much federal tax is withheld from your pay
W-4
The possibility that the value of your money will decrease over time as the cost of living rises
Inflation Risk
This acronym represents the "sticker price" or the price the manufacturer suggests the dealer charge
MSRP
Daily Double!!!
This organization in a residential community creates and enforces rules for properties and residents, often requiring a monthly fee for maintenance.
Homeowners Association (HOA)
The regular payment you make to an insurance company to keep your policy active
Premium
This annual form summarizes your yearly earnings and the total taxes already withheld by your employer
W-2
The profit earned when you sell an asset, like a stock or a house, for more than you originally paid for it
Capital Gain
This state law protects you if you purchase a new car that has significant, unfixable defects
Lemon Law
According to this "rule," your total monthly housing payment (principal, interest, taxes, and insurance) should not exceed this percentage of your gross monthly income.
Rule of 28
The out-of-pocket amount you must pay toward a claim before your insurance coverage begins
Deductible
DAILY DOUBLE!!
The standard form used by individuals to file their annual federal income tax return
1040
In investing, this is the trade off you accept for taking on more risk
Return