Credit
A person or institution that lends money
Creditor
How much should you invest into your retirement plans?
15%
This retirement account is contributed to before you pay taxes on your income
Traditional IRA
Gaining interest on top of interest
Compound interest
Someone who borrow money
Debtor
What type of investment is used as a debt instrument? Typically through the government
Bond
Type of retirement account that Not for Profit companies may offer
403B
This type of credit refers to a company that gives you the ability to charge items purchased from ONLY that store
Charge Account
What does APR stand for?
Annual Percentage Rate
Partial ownership in a company
Stock
What kind of investment account has a contribution limitation of $7,000 per year.
Roth IRA
The agreement between you and a company to obtain money, goods, services now in exchange for payment in the future?
Credit
What is the one offer from a credit card company that you should NEVER use?
Cash Advanced
When investors pool their money together to invest in a variety of different stocks
Mutual Funds
Private companies offer this type of investment account with a possible match $1:$1
401K
What is the income limitation on a ROTH IRA for individual and Family
$150,000/$236,000
When determining credit what is the name for the ability to repay a loan
Capacity
Combination of investments and strategies that will build wealth for the long term
Portfolio Management
What steps should you follow when investing for wealth building?
1. Maximize Company Match 401K
2. Fully Fund Roth IRA if possible
3. Diversify rest of income into Traditional IRA, Mutual Funds, Binds, Stocks
When you own stocks, you are paid for the small portion of your ownership at the end of the year called what?
Dividend