Tag: savings

Section 1041 definition explanation

What is Section 1041?
A section of the Internal Revenue Code that mandates that any transfer of property from one spouse to another is income tax-free. No deductible loss or taxable gain can be declared. This section applies to transfers during marriage as well as in the divorce process. Section 1041 was enacted in order to simplify the consolidation of marital assets. Read more for examples and further explanation including related video clips and also comments
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Retirement Planner definition explanation

What is Retirement Planner?
A practicing professional who helps individuals prepare a retirement plan. A retirement planner identifies sources of income, estimates expenses, implements a savings program and helps manage assets. Estimating future cash flows and assets is also a central part of a retirement planner’s work. He or she may use a web-based calculator or software program that will predict future cash flows and assets based on the data entered. Read more for examples and further explanation including related video clips and also comments
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Ginnie Mae – Government National Mortgage Association – GNMA definition explanation

What is Ginnie Mae – Government National Mortgage Association – GNMA?
A U.S. government corporation within the U.S. Department of Housing and Urban Development (HUD). Ginnie May aims to:

1. Ensure liquidity for government-insured mortgages, including those insured by the Federal Housing Administration (FHA), the Veterans Administration (VA) and the Rural Housing Administration (RHA).
2. Bring investors’ capital into the market for these types of loans, so that the issuers have the means to issue more.

Most of the mortgages securitized as Ginnie Mae mortgage-backed securities (MBSs) are those guaranteed by FHA, which are typically mortgages for first-time home buyers and low-income borrowers. Read more for examples and further explanation including related video clips and also comments
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Accumulation Phase definition explanation

What is Accumulation Phase?
1. A period of time when an annuity investor is in the early stages of building up the cash value of the annuity. This is followed by the annuitization phase where payments are paid out to the annuitant.

2. The period of time when an investor builds up the value of their investment through savings. Read more for examples and further explanation including related video clips and also comments
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Term Life Insurance definition explanation

What is Term Life Insurance?
A policy with a set duration limit on the coverage period. Once the policy is expired, it is up to the policy owner to decide whether to renew the term life insurance policy or to let the coverage end. This type of insurance policy contrasts with permanent life insurance, in which duration extends until the policy owner reaches 100 years of age (i.e. death). Read more for examples and further explanation including related video clips and also comments
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South Sea Bubble definition explanation

What is South Sea Bubble?
One of the largest stock scams of all time. The U.K.-based South Sea Company’s shares saw a huge appreciation based on rumor, speculation and false claims before plummeting and eventually becoming worthless. Thousands of people lost their life savings. Read more for examples and further explanation including related video clips and also comments
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Time Value of Money (TVM) definition explanation

What is Time Value of Money (TVM)?
The idea that money available at the present time is worth more than the same amount in the future, due to its potential earning capacity. This core principle of finance holds that, provided money can earn interest, any amount of money is worth more the sooner it is received. Also referred to as “”present discounted value””. Read more for examples and further explanation including related video clips and also comments
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Broad Liquidity definition explanation

What is Broad Liquidity?
A category of the money supply which includes: all funds in M3, individual holdings in accounts, savings bonds, T-bills with maturity of less than one year, commercial papers, and banker’s acceptances. Read more for examples and further explanation including related video clips and also comments
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Boomerang definition explanation

What is Boomerang?
An American slang term that refers to an adult who has moved back in with his or her parents (who are part of the baby boomer generation) instead of living independently. The phrase, when applied to an individual, makes reference to the fact that the person lived independently for a period, but subsequently returned home due to the financial costs associated with maintaining a separate household. Read more for examples and further explanation including related video clips and also comments
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