A 401(k) is a retirement plan that was established by the federal government in 1981 to encourage saving for retirement. It is usually offered as part of an employee's benefit package. The plan is funded by employee contributions and matching...
Mortgage bonds are bonds sold by a mortgage lender in exchange for cash used to dispense the loan. These bonds are then held by the investor, and as the home buyer makes payments on her mortgage, the bond is repaid with interest. However, this...
Life insurance is a contract between an insurer and a policyholder in which the insurer agrees to pay out a specific sum of money to a named beneficiary upon the policyholder's death. In return for this death benefit, the policyholder makes a...
The stock market is an open market where public investors buy and sell shares of publicly traded companies. Stockholders might share a part of the profit when the company is profitable. By the same token, stockholders share the loss when the...
An Individual Retirement Account is a tax-advantaged savings account that is typically used for long-term retirement savings. Except for the tax benefits, an IRA is very much like a regular taxable investment account, although there are some...
An Individual Retirement Account (IRA) is a long-term savings and investment account that provides various tax advantages. Almost any type of investment is permitted in an IRA, including certificates of deposit. A certificate of deposit is a...
With relaxed conversion regulations in 2010, more taxpayers are considering the advantages of Roth Individual Retirement Accounts (IRAs) over traditional IRAs. Thanks to changes in tax laws, investors can now convert traditional retirement...
A variable life insurance policy uses a portion of the premiums paid on the account as investments. The policy carries a predetermined death benefit like other life insurance policies, but carries risk as to the cash value of the policy based on...
Like whole life insurance, universal life insurance policies allow account holders to build cash value in their insurance policies that can be used at retirement. Universal life insurance, also referred to as flexible premium adjustable insurance,...
Variable life insurance is one of the permanent types of life insurance. Like other permanent life insurance plans, variable life insurance contains an investment aspect, along with the benefits of a life insurance policy. Supplemental life...
Regulated by the FDA as a food additive, sugar substitutes---also known as artificial sweeteners---provide many times the sweetness of table sugar. Because they are so intensely sweet, sugar substitutes enhance the sweetness of foods and beverages...
Whole life insurance and term life insurance do have one major similarity--both pay a benefit in the event of the policyholder's death. The costs and other features associated with these types of policies differ, however. A person who is shopping...
Life insurance originated as a method to provide a safety net for people who depend on the policy holder for financial support. Life insurance offerings include financial products such as annuities that provide benefits in retirement as well as...
There are two basic types of life insurance policies: whole life insurance and term insurance. Whole life is a mixture of protection and investment, and term coverage is strictly protection. The whole life policies invest a part of the premiums...
When looking for a life insurance policy, there are a few different options available. Choosing the right policy depends on a variety of factors including age, health and how much money you have to put toward a policy. Having a basic understanding...
In the United States, the Federal Reserve sets certain interest rates, which in turn affect the interest rates that banks charge consumers. When these interest rates are set at low levels, it can have a widespread impact on the general economy,...
The Federal Reserve Bank, which maintains the stability of that national financial system, increases or decreases short-term interest rates as a way to sustain that stability. The Federal Reserve Bank usually raises interest rates to discourage...
In terms of the securities markets, debt is an instrument such as a bond that represents a loan investors have made to a company or government. In exchange for the money, the issuer of the debt promises to repay investors with interest. In order...
The best type of IRA investment will depend in large part on how many years remain until you retire. As a general rule, it can make good financial sense for longer-term investors to take greater risks since there is more time to recover from...
Consumers have typically sought to invest in areas that provide investment returns; some relatively safe and others quite risky. These days, consumers looking for alternative methods of investment rely on both popular forms as well as lesser-known...
Manufacturers of ozone-producing machines marketed as air purifiers contend that the ozone bonds with organic molecules thus reducing harmful chemical pollutants such as carbon monoxide. Ozone's chemical composition is simple. The oxygen we breath...
