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Glossary

What is Impact Investing?

Impact investing is also known as "Socially Responsible Investing" or "SRI." Impact investing usually involves avoiding investing in companies who are believed to negatively impact people and/or the environment and seeking out companies to invest...

What is Income Tax?

Income tax is the annual tax levied by government on an individual's or corporation's eligible earnings.    See Also: Ways to Reduce Taxes on Income Investments How to Efficiently Turn Savings into Income Tax Time Treasure Hunt IRA vs. 401(k) -...

What is an Index?

An index is a statistical representation of the value of securities with certain charactertistics that make it up. An index often serves as a barometer for a given market or industry and benchmark against which financial or economic performance is...

What is an Index Fund?

An index fund is a passively-managed mutual fund that tries to mirror the performance of a specific index, such as the S&P 500. Since investment trades within an index fund's portfolio are automatic and infrequent, expenses tend to be lower than...

What is Inflation?

The opposite of deflation, inflation is the increasing price of goods and services in an economy that is often caused by a increase in the money supply. Inflation is generally measured by the Consumer Price Index and the Producer Price Index....

What is an Individual Retirement Account (IRA)?

An Individual Retirement Account (IRA) is an account designed for retirement savings that allows you to set aside money and grow it on a tax-deferred basis until withdrawals begin at age 59 1/2 or later (or earlier, with a 10% penalty). Savings in...

What is an Itemized Deduction?

An itemized deduction is an incurred expense which reduces an individual's taxable income, in accordance with IRS regulations. Itemized deductions are usually limited to 2% of adjusted gross income. Examples include mortgage interest, state and...

What is a Joint Account?

A joint account is any account owned by two or more people.   See Also: Your DIY Financial Planning Guide 10 Questions to Ask a Financial Advisor Ask An Advisor: How to Recover Financially From a Divorce Open a Joint 'Romance' Account The Top 3...

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