A savings plan for higher education. Parents and guardians are allowed to make nondeductible contributions to an education IRA for a child under the age…

A form of payment made via the internet that is designed to perform the same function as a conventional paper check. Because the check is in an electronic…

A retail banking service that allows users to transfer funds between personal accounts using email and their online banking service. Email money transfers…

An account that is used to set aside funds to be used in an emergency, such as the loss of a job, an illness or a major expense. The purpose of the fund…

A pooled investment account provided by an employer that allows employees to set aside a portion of their pretax wages for retirement savings or other…

A type of benefit plan that an employer offers for the benefit of his/her employees at no or a relatively low cost to the employees. If employees participate…

A permanent, long-term loan used to pay off a short-term construction loan or other form of interim financing. Although an end loan can have interest…

1. A legal term that refers to the signing of a document which allows for the legal transfer of a negotiable from one party to another.2. An attachment…

A person who is authorized to sign a negotiable security in order to transfer ownership from one party to another, or to approve the terms and conditions…

A financial asset donation made to a non-profit group or institution in the form of investment funds or other property that has a stated purpose at the…

A mortgage that sets money aside for home improvements that will increase energy efficiency within the home. Energy improvement mortgages are available…

A term that can refer to any charge for admission. However, it is commonly used in reference to continuing-care retirement communities (CCRCs). Rather…

A fixed payment amount made by a borrower to a lender at a specified date each calendar month. Equated monthly installments are used to pay off both interest…

1. Dividend income that is earned through an investment in stocks (equity). 2. A type of mutual fund that invests in high-quality companies with a reliable…

The market in which shares are issued and traded, either through exchanges or over-the-counter markets. Also known as the stock market, it is one of the…

A procedure that allows consumers to dispute bookkeeping errors or unauthorized transactions related to their commercial bank accounts. Federal Reserve…

When property and/or an estate is transferred to the government because a person has died without a will or an heir to his or her estate. Transferred…

All of the valuable things an individual owns, such as real estate, art collections, collectibles, antiques, jewelry, investments and life insurance…

An asset management strategy whereby an estate owner aims to transfer assets to his or her beneficiaries without tax consequence. In most estate freezes…

The collection of preparation tasks that serve to manage an individual's asset base in the event of their incapacitation or death, including the bequest…

A tax levied on an heir's inherited portion of an estate if the value of the estate exceeds an exclusion limit set by law. The estate tax is mostly imposed…

A loan that does not require the principal amount to be paid off within a specified period of time. Evergreen loans are usually in the form of a short-term…

A banking term used to describe a check that cannot be processed. Reasons may include the fact that a stop payment order has been made, the customer's…

An individual appointed to administrate the estate of a deceased person. The executor's main duty is to carry out the instructions and wishes of the deceased…

Certain types or amounts of income not subject to federal income tax. Examples of exempt income include municipal bond income, which may also be exempt…

A clause most often at the opening of a will that declares that the document is a will and effectively lays out to the readers a few basic premises upon…

An IRA that allows a second generation beneficiary to continue to distribute the assets over the life expectancy used by the first generation beneficiary…

A U.S. resolution passed in 2003 that is aimed at enhancing protection measures for identity theft by creating standards for the handling of credit card…

A type of partnership designed to centralize family business or investment accounts. FLPs pool together a family's assets into one single family-owned…

Family offices are private wealth management advisory firms that serve ultra-high net worth investors. Family offices are different from traditional wealth…

A government-sponsored enterprise (GSE) that was created in 1938 to expand the flow of mortgage money by creating a secondary mortgage market. Fannie…

An investment advisor that manages over $25 million in assets for other investors. These investors must meet regulations of individual states and file…

A tax levied by the United States Internal Revenue Service (IRS) on the annual earnings of individuals, corporations, trusts and other legal entities…

The set minimum amount of income that a family needs for food, clothing, transportation, shelter and other necessities. In the United States, this level…

Income tax groupings specified by the Internal Revenue Service (IRS) that determine at what rate an individual, trust, or corporation's annual income…

A social safety net that provides temporary financial assistance to workers who have lost their jobs through no fault of their own. Each state has its…

An investment account in which the advisor's compensation is based on a set percentage of the client's assets instead of on commissions. Contrast this…

A mortgage issued by federally qualified lenders and insured by the Federal Housing Administration (FHA). FHA loans are designed for low to moderate income…

A credit-scoring model introduced in 2009 by the FICO company to provide a more accurate picture of a potential borrower's ability to repay a loan. In…

A type of credit score that makes up a substantial portion of the credit report that lenders use to assess an applicant's credit risk and whether to extend…

1. A person legally appointed and authorized to hold assets in trust for another person. The fiduciary manages the assets for the benefit of the other…

A type of risk that accounts for the possibility of a trustee/agent who is not optimally performing in the beneficiary's best interests. This does not…

A category that defines the type of tax return form an individual will use. Filing status is closely tied to marital status. The five filing statuses…

A fee charged for the use of credit or the extension of existing credit. May be a flat fee or a percentage of borrowings, with percentage-based finance…

An asset that derives value because of a contractual claim. Stocks, bonds, bank deposits, and the like are all examples of financial assets. Unlike land…

A United States Federal law enacted in 1978 pertaining to depository financial institutions. The act made 5 major changes to these institutions. The act…

The possession of knowledge and understanding of financial matters. Financial literacy is mainly used in connection with personal finance matters. Financial…

The process by which a firm constructs a financial representation of some, or all, aspects of the firm or given security. The model is usually characterized…

A comprehensive evaluation of an investor's current and future financial state by using currently known variables to predict future cash flows, asset…

A qualified investment professional who helps individuals and corporations meet their long-term financial objectives by analyzing the client's status…