Essential Definitions for a Confident Financial Future

A strategy that involves selling an underperforming investment to offset capital gains and reduce taxes.

A forward-looking strategy that aligns investment and financial decisions with current tax laws to improve after-tax outcomes.

The process of gathering and filing financial information to comply with tax laws.

A field focused on tax compliance, planning, and preparation for individuals or entities.

The annual period when individuals and entities prepare and file tax returns.

A retirement savings account allowing pre-tax contributions. Withdrawals are taxed as ordinary income.

The process of passing financial assets from one generation to the next, often involving estate and tax strategies.

A designation allowing assets to pass directly to a beneficiary without probate after the owner’s death.

A temporary increase in prices often caused by short-term supply chain disruptions or demand shifts, not expected to persist.

Long-term debt securities issued by the U.S. Department of the Treasury.

The process of determining the current worth of an asset or company.

AKA an adjustable interest rate, is an interest rate or loan that fluctuates over time. The rate can vary either over a short period (monthly) or over a longer period of time (every few years).

Venture Capital is financing provided by investors to startups and small businesses with high growth potential in exchange for equity or ownership stakes.

The measure of how much an investment's price fluctuates over time.

The Wash Sale Rule prohibits investors from claiming a tax deduction for a security sold at a loss if a substantially identical security is purchased within 30 days before or after the sale.

A coordinated approach to managing investments, taxes, estate plans, and more to support long-term financial goals.

A plan for drawing down investment assets in retirement while managing risk and tax impact.

Yield is the annual income you earn from an investment, expressed as a percentage of the investment's original cost.