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205 Cards in this Set

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  • Back
What five metrics determine your FICO score?
1. record of paying bills on time over time
2. total balance on your credit cards and other loans compared to your total credit limit (debt to credit ratio)
3. length of credit history
4. new accounts and recent applications for credit
5. mix of credit cards and loans
How early should you make your credit card payments?
online: 2 days before due date
mail: 5 days before due date
What three things should you do if your credit card is stolen?
1. contact the credit card issuer or bank immediately
2. close the account immediately
3. ask for a new card on a new account
What should you do if your identity is stolen?
1. Immediately put a fraud alert on your account by contacting the three major credit bureaus
2. Close your accounts
3. Contact your creditors
4. File a police report and keep the number on file
5. Keep a detailed record of who you contact and when
When you make an extra payment or overpayment on a loan, should you apply it first to the principal or the interest?
principal
What is the short sale of a house?
When the value of a house declines below the amount of the loan. So even if the house is sold, proceeds wouldn't be enough to repay the loans
Are there a lot of fees regarding prepaid cards? Regulations?
Many fees. Few regulations. (Fees: for inactivity, loading money, checking balance, using ATM, using a check to close account, maintenance fee if dont pay min).
What is the rule of 72?
calculation used to determine how long it would take for a sum to double at a certain interest rate, or at what rate it would take the sum to double over a certain time.

Divide 72 by interest rate = # of years
Divide 72 by number of years = interest rate
What is a wash sale and what are the tax implications?
A wash sale is when someone sells a security at a loss, then purchases it again within 30 days. The loss cannot be declared for tax purposes.
What is the maximum individual income tax rate?
35 percent
What is the difference between a short-term and long-term capital gain?
short-term: owned for 0-12 months (profit added to income and taxed at individual tax rate)
long-term: more than 12 months (max tax of 15%)
What is a variable rate of interest?
An interest rate that moves up and down based upon the changes of a different interest rate which is not controlled by the lender. Commonly used by credit card issuers
What is a "go-to" rate of interest?
The interest rate you are charged on unpaid balances in addition to the variable interest rate to determine the total rate of interest on your account
What is an adjustable rate of interest?
an interest rate (for a loan) that is not fixed, buy may change at various specific times. (most commonly found in adjustable rate mortgages)
What is a defined benefit pension plan?
plan offered by employers in which they promise an employee a specified lifetime monthly benefit upon retirement which usually depends on the employee's age at retirement, salary, and the number of years on the job
What is a DB(k)?
new type of employer-sponsored pension plan (began Jan 1, 2010) that combines a 401(k) type savings plan with a defined benefit pension plan that pays a guaranteed lifetime monthly benefit upon retirement
What is compounding?
interest on interest
What is a sole proprietorship?
one person owning a business
What is a partnership?
a business owned by 2 or more entities
What is a corporation?
the structure of most large businesses
What is an IPO?
initial public offering. the first time a corporation sells stock to the public.
What is the difference between a qualified and non-qualified dividend, and how are they taxed differently?
qualified: stock held for more than 61 days, taxed at max of 15%
non-qualified: stock held for fewer than 61 days, taxed as ordinary income
Who is responsible for managing an IRA account?
YOU
Who manages mutual funds?
professionals
Who manages exchange traded funds?
they're "not actively managed"
Who manages a real estate investment trust?
they can be publicly or privately held
What is the difference between open-ended mutual funds and closed-ended mutual funds?
open-ended: pooled investment fund open to anyone who pays the minimum initial purchase. all based on Net Asset Value (NAV)
closed-ended: pooled investment that raises money by issuing and selling a set number of shares and then no more. all about the marketplace
What is the current estimated cost of health insurance for a family of four?
"over $13,000"
You should only invest money in stocks if what's true about that money?
you won't need it for 5 years
Should you ever borrow money to invest in stocks?
never
When investing in stocks, you should focus on future growth in three things. What are they?
1. earnings
2. revenue
3. dividends
You should have no more than ____ percent of your investment in any one stock or industry.
20 percent
What are the min/max number of stocks or funds you should be invested in?
5/10
You should invest no more than _____ of your investment funds in speculation.
5 percent
What rate of return should you aim for?
8-12% or out-perform the S&P500
What's one rule of thumb for when to sell a stock?
when the reason you bought it no longer exists
True or false?: You should buy more shares at lower prices than higher prices?
true
What is dollar cost averaging?
investing a set amount of money in the shares of a business on a regular time schedule regardless of the price of the shares at the time
How much time should you spend reviewing the market/economy per stock you own?
1 hour per week
"Buy and hold" no longer works. What works?
"buy and homework"
You should control risk by re-balancing your portfolio every...
...1 year
The most money in stocks is made by doing what?
identifying trends. look forward 6-18 months
What is the trend regarding national economies?
emerging economies are growing faster than developing economies
What is the trend regarding inflation and interest rates?
they're going to rise soon
What is the trend regarding cheap oil?
the world is running out of it
What is the trend regarding raw materials?
they are in more remote and hard-to-reach areas
What is the trend regarding incomes?
more people have higher incomes
What is the trend regarding life expectancy?
people are living longer
What is the trend regarding birth rates?
they're declining
What is the trend regarding environmental needs?
they're intensifying
What requirement of the Health Care Reform Act kicks in on Jan 1, 2014?
all american citizens and legal aliens must purchase health insurance or be fined by the federal government for not doing so
What is a lifetime limit?
a limit to how much a health insurance plan will pay you over your lifetime
Can an insurance company cancel your insurance if you get sick under the health insurance reform act?
no
What is the price/earnings ratio? What is it also known as?
market price of a share (P) / earnings per share (EPS). also known as the "multiple"
What is an exchange traded fund (ETF)? Give an example.
a fund that tracks an index, but trades like a stock (ex. S&P500)
What is a sector fund?
a fund that's like an ETF, but tracks stocks in a specific industry or other category (energy, water, China, etc)
What is a money market fund?
a mutual fund that invests in very short-term corporate, government or municipal debt which will mature and come due for full payment within 60 days on average. it passes the interest it receives on to its shareholders
What is a key feature of a money market fund?
it's value stays at $1 per unit. it is the interest rate that changes almost on a daily basis
Are money market funds highly liquid?
yes, and very safe. there is no term or maturity date, so you can buy or sell at any time without penalty
Do corporations pay taxes on interest?
no
Do corporations pay taxes on income that becomes dividends?
yes
What makes a contract legal?
consideration
What is the difference between a bilateral and unilateral contract (according to Selinger)?
bilateral - between 2 or more parties
unilateral - put signs up
What's the difference between pay-as-you-go and endowment funds? Which is social security?
Pay-as-you-go means it dispenses as it collects. Endowment means there's a big pool of money being dispersed. Social security is pay-as-you-go.
What are the three types of investors? What do they each seek?
growth: seeks strong companies with growing sales and earnings
value: seeks stocks that have stumbled and have bargain prices
dividend: seeks stocks that pay above-average dividends
What should you do if you're renting an apartment with a roommate?
everyone should sign the lease and understand financial obligations, decide how to pay utilities, purchase cleaning materials, food, and rules on guests/smoking/etc
How does tax work for ordinary IRAs vs. roth IRAs?
ordinary IRAs are taxed going out (not in), roth IRAs are taxed going in (not out)
Is your money taxable while it is in an IRA?
nope
How much money can you put in an IRA or spousal account?
up to $5,000 (plus $1000 if you're older than 50)
What are the terms of a spousal account?
if your spouse does not have a job, you can contribute up to $5,000 of your income to a spousal IRA for him/her. you can deduct the contribution.
What are the restrictions in terms of income on contributions to a roth IRA?
your right to contribute is phased out as your AGI rises between $107,000 and $122,000 on a single return, or between $169,000 and $179,000 on a joint return
What kind of things can you invest in if you have an IRA account?
"you can invest in most kinds of assets depending upon your tolerance for risk"
What is the maximum contribution to a 401(k)?
$17,000 ($22,500 for those over 50) as long as it does not exceed 25% of your combined wages and your employer's contribution
What is the max contribution to a roth 401(k)?
"whatever you're allowed to put into a traditional 401(k) account, you're allowed to put some or all of it into a Roth 401(k) instead."
How much can an employer put into a roth 401(k)?
nothing
What were 401(k) plans intended to do?
replace defined benefit plans (like IRAs)
What kind of retirement plan is for sole proprietors?
solo 401(k) plan
What does a solo 401(k) plan allow you to do?
save both as an employer and as an employee up to 25% or $49,000 whichever is less
What type of IRA is for self-employed individuals or small business owners with only a few employees?
SEP IRA
How much can business owners contribute to a SEP IRA?
up to 25% of income or $49,000, whichever is less
If you choose to contribute to a SEP IRA, what must you do?
you must contribute to your own and that of every one of your eligible employees
How is abortion insurance addressed in the Health Care Reform Act? (3 things)
1. there is no requirement for abortion coverage
2. if there is abortion coverage, it'd have to be paid separately out of one's own pocket
3. there are exceptions for rape, incest, and danger to the mother
What is "vesting"?
the retention or holdback by your employer of all or parts of the employer's contribution to your account if you quit or are fired (for 401k plans)
What are the three types of vesting?
1. 100% vesting - you own all contributions, always
2. cliff vesting - you don't own it all until you've worked for the employer for a certain period of time (no longer than 3 years)
3. graded vesting - you get a percentage of the employer's match each year. usually 1/3 of the employer's contribution per year for 3 years
Does a traditional 401(k) and roth 401(k) function like a traditional IRA and roth IRA in terms of taxes?
yeah
What is a market order to buy/sell?
an order to purchase/sell a certain number of stocks at the ask/bid price
What is a limit order to buy/sell?
an order to buy/sell a certain number of stocks that limits the price at which that can happen
What is a bid?
the highest price a buyer is willing to pay at that very moment in time
What is an ask/offer?
the lowest price at which a seller is willing to sell at that very moment in time
What kind of bonds are tax-free from federal and state taxes?
municipal bonds
What's the relationship between bond prices and interest rates?
inverse
How does the government encourage home ownership?
tax incentives
To what extent can homeowners tax deduct mortgage interest (not principal)?
up to interest on a $1 million loan amount
What else can homeowners tax deduct for home ownership?
"points"
What are points?
charges levied by the lender that are paid at closing and represent prepaid interest. each point equals 1% of the loan amount and will lower the interest rate by about .25%, thus lowering the monthly payment
What tax exemptions are there when you sell a house if there's a gain?
you can exempt up to $250,000 of profit ($500,000 if married) from any tax gain if its their primary residence (lived in the house any two of prior five years).
What tax exemptions are there when you sell a house if there's a loss?
you can use the loss as a tax deduction
What is the alternative minimum tax?
a tax designed to tax high income people who are paying little or no income tax by taking advantage of loopholes. it ignores certain tax deductions allowed in the regular tax code and applies special tax rates
How is Part A medicare financed?
a 2.9% payroll tax on all earned income paid by all workers with no salary cap. 1.45% is paid by the employer, 1.45% by the employee.
How is Part B medicare financed?
monthly premiums (from $96 to $354 per month based on your prior year's AGI). it's optional. benefits are the same regardless of what you pay.
Are tax benefits the same for apartments and condominiums?
yes (i think)
When you make capital improvements (like adding a room) to your primary residence, does that increase or decrease your cost basis?
increase (it lowers your potential taxable profits)
When you go to sell a house, do you want your cost basis to be as high or as low as possible?
high (cost basis = original cost + permanent improvements + cost of getting it ready for sale + other stuff)
What is title insurance?
guarantees clear ownership of a property to buyers and lenders
In terms of houses, what is equity?
the difference between how much the property is worth in the marketplace and what you owe on the mortgage (the value of what you own of the property assuming all debts against the property were paid)
If you pay a high down payment, will you pay higher or lower interest over the life of the loan?
lower
If you buy a house that is in foreclosure, fix it, then sell it 6 months later, is that a long-term or short-term gain?
short-term
Is insurance/maintenance on a house tax deductible?
no
What is an appraisal?
The process of valuing a house
When a house is foreclosed on and there’s a first and second mortgage, how do they divide the proceeds among the first and second mortgage holders?
the first mortgage has to be entirely paid off before the second one (so the second is riskier)
What is private mortgage insurance (PMI)?
insurance that a lender may charge if the down payment for a home is less than 20%. it's currently 1.6% of the principal per year
What is a fixed rate mortgage, variable rate mortgage and adjustable rate mortgage?
fixed - the monthly payment stays the same for the life of the loan
variable - a loan for which the rate may vary
adjustable rate mortgage - the interest rate may change over time based on a specified index or formula
What is the benchmark mortgage?
30-year fixed rate mortgage with 20% down
In real estate, who usually pays the sales commission? How are these commissions determined?
the sales commission is paid by the seller. the commission has historically been 6% of the sales price, but it is common today to negotiate it lower, especially on expensive homes. the buyer's agent splits the commission with the seller's agent
In buying a house, what is the most important factor to consider?
location
If house is in good condition and the real estate broker says so, do you need an inspection?
yes, always
If you have an adjustable rate mortgage and interest rates rise, what happens to your monthly payment?
it goes up
What's the important thing to remember about titling a property?
have your name on the title
What options exist for titling a house if you're married/in a relationship? (three)
Joint Ownership with Rights of Survival - if one does, other inherits
Tenants in Common - each of you owns half of the house
Non-marital agreement - agreement if not married
When buying a car, who does the salesperson at the dealership represent?
the dealership
What are the best days to buy/lease a car?
Last two days of the month, between Christmas and New Year’s Day (or last year’s model sitting on the lot after the new models have just come out)
What’s the difference between the invoice price and the MSRP (when buying a car)?
invoice price is the price the dealer paid for the car, typically MSRP less 2-3% profit margin the dealer will make after selling to a buyer
What is a trade-in (when it comes to cars) and how should you do it?
A trade-in is when you trade in your car for another. If you think you can make more by selling it, ask the dealership to credit you for the trade in but give you 30 days to either give them the car or a check with the equivalent amount
What is Carfax?
a service that keeps track of whether your car has been reported stolen, declared salvage, etc by the VIN (vehicle identification number)
What is capitalized cost (when leasing a car)?
The total amount that the lease will offer in terms of financing the car—lower the cost, lower the monthly payments. Negotiable.
What is residual value (when leasing a car)?
The predetermined value and purchase price of the car at the end of the lease—as important as the capitalized cost of the vehicle. Non-negotiable, and set by the lessor.
When investing in residential or commercial property, does depreciation increase or decrease your cost basis?
decrease
What is depreciation?
A gradual loss of value in business process as it wears out. Is tax deductible.
What makes up a lease payment for a car lease (what are the ingredients)?
monthly lease payments are based on the difference between the capitalized cost and the residual value
What is the difference between residential, commercial and industrial real estate?
residential - apartments, houses, condos, flats, duplexes, lofts
commercial/industrial - Requires much more capital upfront. Includes office properties, warehouses, the like
What is the difference between an active and passive real estate investor? What are the tax implications?
Active - you’re actively involved in development, management etc on a full-time or nearly full-time basis. Profits from fixing and flipping houses within one year of purchase are taxed as ordinary income.
Passive - You do not materially participate in the business, but are more like a silent partner. Losses from such investments can be used only to offset certain income from similarly passive investments.
If you buy a house that is in foreclosure, fix it, then sell 6 months later, is that a short-term capital gain or long-term?
short-term
In housing, are points good for short-term or long-term?
long-term (they lower your monthly payment)
What do you need to make sure of when planning for retirement when it comes to mortgages?
make sure your mortgage can be paid off entirely by retirement
What is escrow?
a neutral 3rd party which holds the documentation and money involved in the transaction of a house until it is completed, and then distributes the funds and executives the instructions
Can a landlord discriminate when it comes to residents?
no discrimination, except in taking a subletter for a private residence
How much homeowners insurance should you get?
always insure for at least 80% of the value of the home
What are the withdrawal requirements for a traditional IRA? (What happens at 59.5 70.5?)
after age 59.5: can take out money, taxed
after 70.5: must begin yearly withdrawals using required minimum distribution schedule (designed to get all your money out by death)
What are the withdrawal requirements for a roth IRA?
after 59.5 (if account open for at least 5 years): take out all you want, tax-free (taxed before 59.5)
after 70.5: no requirements (however, there are requirements for beneficiaries after death)
Are IRA accounts protected from bankruptcy?
yes
Who is the beneficiary of your 401(k) if you die?
your spouse, automatically, unless they waive
What is the difference when it comes to the employer contribution to a roth 401(k) vs. a traditional 401(k)?
no difference, except that the matching contribution of the employer must go to the traditional account
What parties are involved in a traditional 401(k)? Roth 401(k)?
traditional - you, government
roth - you, government, employer
Do you "make your profit" on a house when you buy or sell a property?
when you buy (pay close attention to the purchase price. don't overpay)
How can companies that operate as real estate investment trusts avoid tax on corporate income?
by paying out at least 90% of their income in the form of dividends (the dividends are taxed as ordinary income to the recipient)
Are student loans erased by bankruptcy?
no
What is a "stipulated maximum" when it comes to health care?
the max you pay in any one year, no matter how high the bills run or for how long ("stop-loss protection")
What three important provisions of the health care reform act went into effect in 2010?
1. insurers may no longer deny coverage to children due to pre-existing conditions
2. insurers may not restrict coverage to a lifetime limit
3. insurers may not cancel a policy because an insured person gets sick
What two important provisions of the health care reform act went into effect in 2011?
1. parents can keep children up to age 26 covered on their policy
2. insurance plans for individuals and small groups must spend 80% of premium dollars on medical services claims (85% for large groups)
What important provision of the health care reform act goes into effect in 2013?
the floor on itemized deductions for medical expenses is increased to 10% from 7.5%, thus lowering the total value of the deduction to taxpayers (inc. rev to fed gov)(so in order to get a tax deduction on the expense, it must be more than 10% of your income)
What two important provisions of the health care reform act go into effect in 2014?
1. mandate for all US citizens and legal residents to buy health care or be fined
2. if someone loses their job and their employer-based insurance, they cannot be denied medical insurance coverage or charged higher rates due to pre-existing conditions
Does disability insurance cover you if you're not employed?
nope
What's "super critical" when searching for the best terms of coverage and cost for disability insurance?
the definition of "disability"
What are the three most common ways of defining "disability"?
1. inability to do your job or a similar job (most liberal definition)
2. inability to do any job for which you may be qualified (may be adequate)
3. permanent or total disability to do any job (very restrictive)
What's really important when running a business?
having someone who is looking over the horizon at what's coming and planning for the future, looking for trends, fashions, obsolescence, financing
What are four things to remember when starting a business?
1. have at least 1 year cash to cover business/personal needs
2. clean up credit report
3. don't put your home up as collateral for a loan
4. take a class in accounting
What does a 1031 exchange do?
A 1031 exchange allows you to trade a property for another of equal or greater value, deferring taxes on capital gains. It is a way to defer taxes and reinvest the tax savings in the hope of greater profit. This assumes more risk. You must assume at least as much debt.
Is it a good idea to have one agent represent both the buyer and seller in the sale of a house in order to save costs?
no
With rental property, do capital expenditures increase or decrease the cost basis?
increase
What is a W4 form?
Form that lets employer know how much to deduct or withhold for personal income taxes and payroll taxes
What are REITs (real estate investment trusts), how are they taxed? Are their dividends qualified or nonqualified?
REITs are pools of money similar to mutual funds which invest in real estate rather than stocks or bonds. Tend to pay 4-8% in unqualified dividends. REITs themselves pay no tax on corporate income if they pay out at least 90% of their income in the form of a dividend.
Are you allowed to own real estate investment trust shares in an IRA or roth IRA account?
Yes. In fact, it is best for you to keep REIT in retirement accounts.
What is a co-payment?
when you go to doctor or fill prescription, you pay a little yourself.
What is a deductible?
the amount you have to pay before insurance kicks in
What is co-insurance?
Like a co-payment, except it's a percentage of the cost of the care, not a dollar amount (20-25%). The higher the co-payment or co-insurance, usually the lower the deductible
What is COBRA?
COBRA is a government act that allows you to continue in a company’s group health care plan for up to 18 months after you leave the company if you pay the individual rate. It is much more expensive to you and may double cost of health insurance because you cover the employee and the employer contribution. Only about 10% of terminated employees take it.
What is an HMO?
A healthcare plan in which members pay a flat monthly fee for coverage with little or no deductible or co-payment. One example is Kaiser. You pay a monthly fee whether or not you need healthcare, and you will be responsible for all or at least a large part of the bill if you go to a provider outside the plan.
What is a PPO?
Preferred Provider Organization: Lets you choose from a group of providers who have contracts with your insurance company to provide services at a large discount to the posted rate.
What is an HSA?
(Health Savings Account) Tax sheltered accounts for medical bills, essentially making some medical bills tax deductible. They are used in conjunction with a high deductible health insurance plan. Can be through employer or individually.
What is an FSA?
(Flexible Spending Account) Employer only sponsored plan. Money deducted from paycheck on a pretax basis to pay for out of pocket health care expenses. Use it or lose it
What are the advantages are of having an HSA or an FSA?
Both are plans that let you set aside pre-tax dollars to pay out of pocket medical expenses tax free, essentially making some medical expenses tax deductible
What does a standard homeowners insurance policy cover and not cover?
Protects against disasters, covering damage to your property and your liability or legal responsibility for any injuries or property damage you or members of your family cause to other people. Doesn’t cover dirt, gross negligence or poor maintenance.
How do you determine how much home owners insurance you should buy on a house (structure itself)?
Multiply square footage of house by approximate cost per square foot to build a new house in your area.
What are the two types of life insurance?
term insurance and whole life insurance
What do the two types of life insurance provide and how are they different?
Term life pays out in the event of you dying—it’s pure death insurance
Whole life insurance pays out if you die, but also includes a savings component called the “cash value” which is invested by the insurer and builds up cash tax free. This can be borrowed against and is returned to you if you cancel the policy.
If you buy life insurance when you're young, will the premium or cost be higher because you'll live longer?
Premiums increase with age?
What is disability insurance? When does it pay benefits?
Disability insurance pays an insured person an income when that person is unable to work because of an accident or illness. It does not cover you if you are not employed. But the definition of “disability” is not standardized and can vary by policy.
What is workmen's compensation and who pays for it?
Worker’s comp is insurance paid entirely by the employer that provides coverage if an employee’s injury or illness is job-related
What is CASDI and who pays for it?
California State Disability Insurance.
You do! It comes out of your paycheck at 1.1% of payroll. Pays up to 52 weeks with 7 day waiting period. Benefits are based on quarterly wages
When talking about a business, how do we define equity?
equity can best be described as ownership or stake in the business
What are the names of the three major credit reporting agencies?
Equifax, Experian, Transunion
What is the default rate of interest on a credit card?
The default rate of interest is the rate of interest you get charged once you are delinquent on your payments. It is often as high as 28-35%
What does it take to be eligible for medicare?
Medicare is available to most people at age 65, or after 2 years on disability
What does it take to be eligible for social security?
Minimum age 66, you must have contributed to the system for a minimum number quarters (not specified), and you must have earned a minimum amount of income over those quarters. You must be a citizen. There is no means test.
Why do people refinance their home loans?
Refinance just means to get a new loan. Reasons include to obtain a lower interest rate and/or a lower monthy payment, to consolidate first and second mortgage, and to borrow money against increased equity
What were the major causes of the subprime mortgage crisis?
Causes of the crisis include incentives to get as many borrowers as possible, regardless of ability to pay. Additionally, mortgages were packed together to minimize risks, and risks were transferred like hot potato, decreasing accountability
What credit score defines a subprime mortgage?
Scores of 600 or less generally qualify someone for a subprime mortgage.
What is negative amortization (home loans)?
When you have low teaser rates, but the discrepancy between the teaser rate and the market rate is added to your principal, so you can pay on time but your loan can still be going up. This is called negative amortization
Can owners of real estate property deduct their principal and interest rate payments on a mortgage?
Interest is deductible, Principal is not deductible
When owning investment real estate, does depreciation increase or decrease profits?
Decreases profit
When it comes to credit card and debit cards, what are over the limit fees?
Debit overdraft charges can occur only if authorized by consumers
Credit companies may charge overdraft fees
What are the key components of the credit card act?
1. If you are 60 days late, you can be charged the interest default rate (28 to 35%). If you make payments on time, original rate must be restored
2. Interest rate increases can only be applied to new charges for an account in good standing
3. Over-limit fees may not be charged unless the cardholder agrees to allow them.
4. Unused credit hold may not create an over-limit charge unless the hold is executed
5. Statements must show how many months it will take to pay off your balance if only the minimum payment is made. Plus it must show the total you will pay in principal and interest over that time
6. No cap on interest rates on outstanding balances
What do you need to do if you switch checking accounts?
Open new account, transfer all billings to that new account
Who owns credit unions?
members
What fees come with prepaid cards?
More than half of prepaid cards come with activation fees of up to $40
Some have inactivity fees, loading fees, balance checking fees, ATM fees, fee for using a check to close an account, minimum loading fees.
What is an above average dividend?
A dividend rate that is greater than interest rate on 10 year Treasury Bond
Are bonds good investments during an inflationary period?
no
What is the difference between Part A and Part B medicare?
Part A: hospital, skilled nursing, home-healthcare, hospice, blood transfusions, etc.
Part B: Means-tested, covers doctor, outpatient medical services, lab work, outpatient hospital work. Part B is optional and means-tested
What is a current yield?
Interest rate based on the purchase price paid for the bond which may be higher or lower than the face value.
What is a home equity line of credit?
Home equity loans are borrowing against the market value of your house. They provide a revolving line of credit to re-borrow funds up to a maximum amount. Unlike credit cards, they are secured lines of credit. They must be paid back to lender upon default or sale of property.
What is a notary public?
Person licensed by the state to witness signatures and verify their authenticity
For student loan payments, what happens if you’re late? Do they get reported to credit bureaus?
After 60 days, reported to credit bureaus
What is a K1?
partnership income tax form
What is a W2?
earned income tax form
What is a W4?
Form that lets employer know how much to deduct or withhold for personal income taxes and payroll taxes