Glossary
4
A 403(b) plan is a workplace retirement plan — typically offered by public schools and higher education institutions, churches, and charitable entities — designed to help employees save for retirement while receiving tax benefits.
E
An exchange-traded fund (ETF) is a type of investment fund that holds a variety of underlying securities, including stocks, bonds, or alternative assets. It’s a way for investors to pool their money and each gain exposure to the assets within the fund rather than purchasing each asset individually.
The earned income tax credit (EITC) is a federal tax credit designed to provide financial assistance to low-to-moderate-income workers. The amount received by a taxpayer depends on filing status, number of children, and annual income.
I
Tax brackets are the different ranges of income-assigned tax rates. In the United States, there are seven different tax brackets, with tax rates ranging from 10% to 37%.
M
A money order is a paper document that requires paying with cash upfront, typically issued by a government or financial institution.
R
RMDs are an annual amount retirees are required to withdraw from their tax-deferred accounts after reaching a certain age.
S
A SEP IRA — short for simplified employee pension plan — is a tax-advantaged retirement plan designed for business owners. While it can be used by businesses of any size, it’s often used by small business owners and self-employed individuals.
Stagflation is an especially difficult economic environment created by the combination of several factors: slow economic growth, high inflation, and a high unemployment rate.
W
Wealth management is the process of reviewing and making decisions about your wealth so you can achieve your financial goals.
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