Glossary
Fixed Annuity
A contract with an insurance company that guarantees investment growth at a fixed interest rate as well as current or future payments in exchange for a premium or series of premiums. The interest earned on an annuity contract is not taxable until the funds are paid out or withdrawn. The guarantees of an annuity contract depend on the issuing company’s claims-paying ability. Annuities have fees and charges associated with the contract, and a surrender charge also may apply if the contract owner elects to give up the annuity before certain time-period conditions are satisfied.
Fixed-Rate Mortgage
A mortgage with a set interest rate that will not change over the life of the loan.
Foreclosure
The legal process under which a creditor seizes the property of a borrower who has not made timely payments on his or her debt.
Front-End Load
A sales fee paid at the time an investment is purchased. This fee is deducted from the investment—thus lowering the size of the investment.
Fundamental Analysis
A method of evaluating securities that examines financial and economic factors—such as the current finances of a company and the prevailing economic environment—to determine whether the company’s future value is accurately reflected in its current stock price.
Gift
The voluntary transfer of assets under which the giver receives no compensation and retains no interest in his or her gift.
Gift Tax
A tax the federal government and some states levy on the transfer of property as a gift. Generally gift taxes increase with the amount of the gift and are paid by the donor.
Gross Monthly Income
Total monthly income generated from all sources before taxes and other expenses are considered.
Group Life Insurance
Life insurance that insures all the members of a specific group, most often the employees of a specific company or the members of a professional association.
Health Savings Account (HSA)
An account that offers individuals covered by high-deductible health plans a tax-advantaged means to save for medical expenses. Within certain limits, funds contributed to the account are not subject to federal income taxes. Unlike Flexible Spending Accounts (FSAs), funds can be rolled over from year to year if not spent.
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