Reference

An insurance company created and owned by a parent company or group to provide coverage specifically for its owners' risks.

Certificate of Deposit is a type of savings account where you agree to leave your money untouched for a set period, like one year, in exchange for a higher interest rate than a standard savings account.

A strategy of buying multiple certificates of deposit with different maturity dates to maintain liquidity and capture varying interest rates.

The personal identification section of a credit report that contains identifying information such as name, current and previous addresses, and social security number.

An equity whose price is significantly affected by changes in the overall economy and follows the stages of the business cycle.

A unique nine-digit identification sequence for businesses, issued by Dun & Bradstreet to track business credit history.

A severe and prolonged downturn in economic activity. It is characterized by extreme unemployment, low production, and a significant reduction in trade and capital movements.

The process of allocating capital in a way that reduces the exposure to any one particular asset or risk.

An Employer Identification Number is a unique nine-digit number assigned by the government to businesses, acting like a Social Security number for a company. You need it to open a business bank account, hire employees, or file your business taxes.

Funds set aside specifically for urgent, unplanned expenses to avoid going into debt.

A loan or lease specifically designed to help business owners purchase expensive machinery, vehicles, or technology. The equipment itself typically acts as collateral for the debt, which can result in lower interest rates.

FICA stands for Federal Insurance Contributions Act, which is the tax taken out of your paycheck to fund Social Security and Medicare. Think of it as a mandatory community pot that everyone contributes to so that seniors and the disabled have a guaranteed safety net for income and healthcare.

A United States federal payroll tax that is used to fund Social Security and Medicare programs.

A situation where the price of a security opens significantly higher or lower than the previous day's close with no trading in between.

A type of savings account that typically pays a significantly higher interest rate than a standard savings account.

Cash or assets that can be quickly and easily converted into cash without a significant loss in value.

A broad measure of the money supply that includes M1 plus 'near money' such as savings deposits, money market funds, and certificates of deposit. It is a key indicator of potential future inflation.

A loan specifically used to purchase real estate, where the property itself serves as collateral for the debt.

A classification of housing where multiple separate housing units for residential inhabitants are contained within one building.

Net Investment Income Tax: This is an extra tax that high-earning individuals pay on income they generate from investments, such as dividends, rental income, or selling stocks for a profit. It is essentially an additional surcharge on top of regular taxes specifically for people with significant investment earnings.

A policy that covers all causes of loss except for those specifically excluded in the policy language.

A Personal Identification Number is a secret numeric code used to verify your identity. It acts like a digital key that proves you are authorized to use your bank account at an ATM or make a purchase.

A fee some lenders charge if you pay off your loan significantly earlier than the agreed-upon schedule.

An informal evaluation by a lender to estimate how much money a person might be able to borrow based on self-reported data.

A significant decline in economic activity spread across the economy, lasting more than a few months. It is traditionally defined as two consecutive quarters of negative GDP growth.

A foreign currency held in significant quantities by central banks as part of their official foreign exchange reserves.

Property used specifically for living in, such as single-family houses, condos, and townhomes.

A long-term, fixed-rate financing program specifically designed for purchasing major fixed assets such as real estate or machinery.

Sequence of Returns Risk — The danger that poor investment performance during the early years of retirement will significantly deplete a portfolio's longevity.

A federal program that provides monthly income to individuals who are unable to work due to a significant medical impairment that is expected to last at least one year or result in death.

A 401(k) plan designed specifically for business owners who have no employees other than their spouse.

Social Security Disability Insurance is a federal program that pays monthly benefits to people who have worked long enough to earn coverage but are now unable to work due to a significant, long-term medical condition.

The Thrift Savings Plan is a retirement savings and investment plan designed specifically for federal employees and members of the military, similar to a 401(k) plan in the private sector.

Risk that is unique to a specific company or industry and can be reduced through diversification.

The percentage of your total available credit that you are currently using, which significantly impacts your credit score.