1031 Exchange

Financial Planning Areas: Tax Planning, Real Estate Planning, Capital Gains, Wealth Management.

Definition: A transaction that may allow eligible real property held for investment or business use to be exchanged for qualifying like-kind real property while deferring recognition of gain, subject to strict tax requirements and deadlines.

401(k)

Financial Planning Areas: Defined Contribution, Retirement Accounts, Business Retirement Planning, Employee Benefits, Tax Planning.

Definition: An employer-sponsored defined-contribution retirement account that allows eligible employees to save and invest part of their paycheck on a pretax or Roth basis, often with an employer matching contribution.

401(k) Rollover

Financial Planning Areas: Retirement Accounts, Personal Retirement, Individualized Retirement Plans, Tax Planning, Wealth Management.

Definition: The movement of eligible retirement assets from a former employer’s 401(k) to an IRA or another eligible employer plan. A properly completed direct rollover generally avoids current taxation, while an indirect rollover has additional withholding and timing requirements.

403(b) Plan

Financial Planning Areas: Retirement Accounts, Defined Contribution, Employee Benefits, Retirement Planning.

Definition: A tax-advantaged employer retirement plan generally available to eligible employees of public schools and certain tax-exempt organizations.

457(b) Plan

Financial Planning Areas: Retirement Accounts, Defined Contribution, Employee Benefits, Retirement Planning.

Definition: A tax-advantaged deferred-compensation plan generally offered by state and local governments and certain tax-exempt employers.

529 Plan

Financial Planning Areas: Investment Planning, College Planning, Personal Financial Strategy, Tax Planning.

Definition: A tax-advantaged savings plan sponsored by a state, state agency, or educational institution to encourage saving for qualified education expenses.

Account Location

Financial Planning Areas: Tax Planning, Tax-Aware Investing, Investment Planning, Portfolio Management.

Definition: The strategy of deciding which investments should be held in taxable, tax-deferred, or tax-free accounts based on their tax characteristics and the investor’s overall plan.

Accredited Investor

Financial Planning Areas: Alternative Investments, Investment Planning, Risk Assessment, Wealth Management.

Definition: A person or entity meeting applicable financial or professional criteria that may participate in certain unregistered securities offerings.

Active Management

Financial Planning Areas: Investment Advisory Services, Investment Planning, Portfolio Management, Wealth Management.

Definition: An investment approach in which a manager makes buy, sell, and hold decisions with the goal of achieving a stated objective or outperforming a benchmark.

Adjusted Gross Income (AGI)

Financial Planning Areas: Tax Planning, Income Tax Planning, Medicare Planning, Retirement Planning.

Definition: Gross income reduced by specified adjustments and used as a starting point for calculating taxable income and determining eligibility for various tax provisions.

After-Tax Contribution

Financial Planning Areas: Retirement Accounts, 401(k), Tax Planning, Retirement Savings.

Definition: Money contributed after income taxes have been paid, potentially allowing the contribution amount to be withdrawn without being taxed again.

Alpha

Financial Planning Areas: Investment Planning, Portfolio Management, Investment Advisory Services, Performance Measurement.

Definition: A measure commonly used to describe an investment’s performance relative to the return expected for its market risk or benchmark.

Alternative Investments

Financial Planning Areas: Investment Advisory Services, Asset Allocation, Portfolio Management, Wealth Management.

Definition: Financial assets outside traditional stocks, bonds, and cash, such as private equity, hedge funds, real estate, or commodities.

Alternative Minimum Tax (AMT)

Financial Planning Areas: Tax Planning, Income Tax Planning, Investment Planning, Business Owner Financial Planning.

Definition: A parallel federal income-tax calculation intended to limit certain exclusions, deductions, and preferences for taxpayers whose tentative minimum tax exceeds regular tax.

Annual Enrollment Period (Medicare)

Financial Planning Areas: Medicare, Healthcare Planning, Prescription Drug Coverage, Retirement Planning.

Definition: The yearly period during which eligible Medicare beneficiaries may make specified changes to Medicare Advantage and Part D coverage for the following plan year.

Annual Exclusion Gift

Financial Planning Areas: Estate & Legacy Planning, Gift Tax, Tax Planning, Multigenerational Wealth Planning.

Definition: A gift that may be excluded from federal taxable gifts up to the applicable annual amount per recipient when legal requirements are satisfied.

Annual Percentage Rate (APR)

Financial Planning Areas: Debt Management, Personal Finance, Cash Flow Management, Financial Planning.

Definition: A standardized annual measure of borrowing cost that includes interest and certain fees, allowing comparison among credit offers.

Annual Percentage Yield (APY)

Financial Planning Areas: Cash Management, Personal Finance, Investment Planning, Financial Planning.

Definition: A standardized annual measure of interest earned that reflects compounding over the stated period.

Annuity

Financial Planning Areas: Retirement Income Planning, Income Strategies, Insurance Planning, Longevity Risk.

Definition: An insurance contract that may provide tax-deferred accumulation, guaranteed income, death benefits, or other features depending on its terms.

Asset Allocation

Financial Planning Areas: Investment Advisory Services, Investment Planning, Portfolio Management, Wealth Management.

Definition: Dividing a portfolio among asset categories based on goals, risk tolerance, liquidity needs, and time horizon.

Asset Class

Financial Planning Areas: Asset Allocation, Investment Planning, Portfolio Management, Wealth Management.

Definition: A category of investments with broadly similar characteristics, market behavior, and risk-return drivers, such as equities, fixed income, cash, or real estate.

Asset Protection

Financial Planning Areas: Personal Financial Strategy, Estate & Legacy Planning, Business Financial Planning, Risk Assessment.

Definition: Legal and financial planning intended to protect assets from identified liabilities, creditors, and claims, subject to applicable law.

Asset Titling

Financial Planning Areas: Estate Planning, Asset Protection, Beneficiary Coordination, Wealth Coordination.

Definition: The legal form in which property is owned, which can affect control, liability, taxation, incapacity planning, and transfer at death.

Assets Under Management (AUM)

Financial Planning Areas: Investment Advisory Services, Portfolio Management, Wealth Management, Advisory Fees.

Definition: The total market value of investments that an advisor or firm manages for clients.

Backdoor Roth IRA

Financial Planning Areas: Tax Planning, Roth IRA, Retirement Accounts, High-Net-Worth Financial Planning.

Definition: A strategy involving a nondeductible traditional IRA contribution followed by a Roth conversion, with tax results affected by aggregation and pro-rata rules.

Benchmark

Financial Planning Areas: Investment Planning, Portfolio Management, Performance Measurement, Investment Advisory Services.

Definition: A defined index or standard used to evaluate an investment portfolio’s performance, risk, or allocation.

Beneficiary

Financial Planning Areas: Estate & Legacy Planning, Life Insurance Planning, Retirement Accounts, Personal Planning.

Definition: A person or entity designated to receive assets, benefits, or distributions following a specified event, commonly the owner’s death.

Beneficiary Coordination

Financial Planning Areas: Estate & Legacy Planning, Retirement Accounts, Life Insurance Planning, Wealth Coordination.

Definition: Reviewing and aligning beneficiary designations across accounts, policies, trusts, and other assets so transfers reflect the owner’s intentions.

Beneficiary IRA

Financial Planning Areas: Retirement Accounts, Estate & Legacy Planning, Beneficiary Coordination, Tax Planning.

Definition: An IRA established to receive inherited retirement assets and governed by distribution rules based on the original owner, beneficiary type, and date of death.

Beta

Financial Planning Areas: Investment Planning, Portfolio Management, Risk Assessment, Performance Measurement.

Definition: A measure of how sensitively an investment’s returns have moved relative to a specified market benchmark.

Bond

Financial Planning Areas: Fixed Income, Investment Planning, Portfolio Management, Income Strategies.

Definition: A debt security through which an investor lends money to an issuer in exchange for promised interest and repayment terms, subject to credit and market risk.

Bond Ladder

Financial Planning Areas: Investment Advisory Services, Fixed Income, Income Strategies, Retirement Income Planning.

Definition: A portfolio of fixed-income securities with staggered maturity dates designed to manage interest-rate risk and support recurring liquidity.

Broker-Dealer

Financial Planning Areas: Professional Specialties, Investment Advisory Services, Securities, Financial Advice.

Definition: A regulated firm that buys and sells securities for customers, for its own account, or both.

Budgeting

Financial Planning Areas: Cash Flow Management, Personal Finance, Money Management, Financial Organization.

Definition: Creating a structured plan for income, spending, saving, debt repayment, and other financial priorities.

Business Continuity Planning

Financial Planning Areas: Business Financial Planning, Business Succession, Risk Assessment, Key Person Insurance.

Definition: Preparing systems, leadership, funding, communications, and recovery procedures so a business can continue after disruption or loss of a key person.

Business Financial Planning

Financial Planning Areas: Professional Specialties, Financial Strategy, Business Succession, Money Management.

Definition: Evaluating a company’s financial position and coordinating strategies for growth, risk, benefits, capital, taxes, and succession.

Business Owner Financial Planning

Financial Planning Areas: Business Financial Planning, Personal Financial Strategy, Business Succession, Wealth Coordination.

Definition: Coordinated planning that connects a business owner’s company finances with personal wealth, retirement, taxes, insurance, succession, and estate goals.

Business Retirement Planning

Financial Planning Areas: Business Financial Planning, Employee Benefits, Retirement Planning, Tax Planning.

Definition: Developing and administering workplace retirement solutions for business owners and employees, such as 401(k)s, SEP IRAs, SIMPLE IRAs, and pension plans.

Business Succession

Financial Planning Areas: Business Financial Planning, Estate & Legacy Planning, Legacy Planning, Executive Benefits.

Definition: A strategy for transferring business ownership and leadership while addressing continuity, taxes, valuation, employees, and family goals.

Business Valuation

Financial Planning Areas: Business Financial Planning, Business Succession, Buy-Sell Agreements, Estate & Legacy Planning.

Definition: The process of estimating a business’s economic value using earnings, assets, liabilities, market position, ownership structure, and other factors.

Buy-Sell Agreement

Financial Planning Areas: Business Succession, Business Financial Planning, Estate & Legacy Planning, Key Person Insurance.

Definition: A binding agreement establishing how and when an ownership interest may be transferred after events such as death, disability, retirement, or departure.

Capital Gains

Financial Planning Areas: Tax Planning, Investment Advisory Services, Portfolio Management, Money Management.

Definition: Profit realized when an asset is sold for more than its adjusted cost basis.

Capital Gains Tax

Financial Planning Areas: Tax Planning, Income Tax Planning, Investment Planning, Wealth Management.

Definition: Tax that may apply to realized gains from the sale of a capital asset.

Capital Loss

Financial Planning Areas: Tax Planning, Investment Planning, Portfolio Management, Tax-Loss Harvesting.

Definition: A loss realized when a capital asset is sold for less than its adjusted cost basis, subject to applicable netting and deduction rules.

Cash Balance Plan

Financial Planning Areas: Business Retirement Planning, Defined Benefit Plan, Employee Benefits, Tax Planning.

Definition: A defined-benefit retirement plan that expresses a participant’s promised benefit as a hypothetical account balance based on plan credits.

Cash Flow Management

Financial Planning Areas: Personal Financial Strategy, Business Financial Planning, Money Management, Financial Organization.

Definition: Tracking and coordinating cash inflows and outflows to support liquidity, obligations, savings, and long-term stability.

Cash Reserve

Financial Planning Areas: Cash Flow Management, Business Financial Planning, Emergency Fund, Risk Assessment.

Definition: Liquid funds intentionally set aside to meet near-term obligations, emergencies, opportunities, or periods of reduced income.

Cash Value Insurance

Financial Planning Areas: Life Insurance Planning, Permanent Insurance, Asset Protection, Estate & Legacy Planning.

Definition: Permanent life insurance that includes a cash-value component that may accumulate on a tax-deferred basis under current law.

Catch-up Contributions

Financial Planning Areas: Retirement Accounts, Retirement Planning, Personal Planning, Tax Planning.

Definition: Additional contributions permitted for certain eligible individuals, commonly beginning at age 50, beyond standard annual retirement-account limits, subject to current law and plan provisions.

CFP® Professional

Financial Planning Areas: Professional Specialties, Financial Planning, Fiduciary, Investment Advisory Services.

Definition: A professional authorized to use the CFP® certification marks after meeting education, examination, experience, and ethics requirements established by CFP Board.

Charitable Giving

Financial Planning Areas: Estate & Legacy Planning, Tax Planning, Charitable Tax Deductions, Private Family Foundations.

Definition: Transferring cash, investments, or property to qualified charitable organizations to advance philanthropic goals, potentially with tax consequences.

Charitable Lead Trust (CLT)

Financial Planning Areas: Charitable Giving, Estate & Legacy Planning, Tax Planning, Trust.

Definition: An irrevocable trust that provides payments to one or more charities for a stated period before remaining assets pass to noncharitable beneficiaries.

Charitable Remainder Trust (CRT)

Financial Planning Areas: Charitable Giving, Estate & Legacy Planning, Tax Planning, Income Planning.

Definition: An irrevocable split-interest trust that generally provides payments to noncharitable beneficiaries for a term and transfers the remainder to charity.

Charitable Tax Deductions

Financial Planning Areas: Tax Planning, Charitable Giving, Estate & Legacy Planning, Income Tax Planning.

Definition: Deductions that may be available for eligible contributions to qualified charitable organizations, subject to tax law and documentation requirements.

Chartered Financial Consultant (ChFC)

Financial Planning Areas: Professional Specialties, Financial Planning, Wealth Management, Financial Advice.

Definition: A professional designation involving advanced education in comprehensive financial planning.

Chartered Life Underwriter (CLU)

Financial Planning Areas: Professional Specialties, Life Insurance Planning, Estate & Legacy Planning, Business Financial Planning.

Definition: A professional designation focused on life insurance, risk management, estate planning, and business continuation.

Closely Held Business

Financial Planning Areas: Business Financial Planning, Business Succession, Business Valuation, Estate & Legacy Planning.

Definition: A business owned by a relatively small number of people whose interests are not generally traded publicly.

COBRA

Financial Planning Areas: Healthcare Benefits, Group Health Insurance, Life Transition Planning, Employee Benefits.

Definition: A federal law that may let eligible employees and family members temporarily continue employer health coverage after certain qualifying events, generally at their own cost.

Coinsurance

Financial Planning Areas: Healthcare Benefits Coverage, Medicare, Insurance Planning, Personal Finance.

Definition: The percentage of an eligible covered expense the insured is responsible for paying after applicable deductibles are satisfied.

College Planning

Financial Planning Areas: Family Financial Planning, Personal Financial Strategy, Investment Planning, Wealth Management.

Definition: Coordinating resources and savings vehicles to prepare for education expenses for children, grandchildren, or other students.

Comprehensive Retirement Plan

Financial Planning Areas: Retirement Planning, Financial Strategy, Income Strategies, Holistic Financial Planning.

Definition: A coordinated roadmap addressing income, investments, taxes, healthcare, risk, and estate or legacy considerations throughout retirement.

Contribution Limit

Financial Planning Areas: Retirement Accounts, 401(k), IRA, Tax Planning.

Definition: The maximum amount that may be contributed to an account during a specified year under applicable law and plan rules.

Conversion Privilege

Financial Planning Areas: Life Insurance Planning, Term Insurance, Permanent Insurance, Insurance Planning.

Definition: A policy provision allowing eligible term life coverage to be converted to permanent insurance within stated limits, often without new medical underwriting.

Copayment

Financial Planning Areas: Healthcare Benefits Coverage, Medicare, Insurance Planning, Personal Finance.

Definition: A fixed dollar amount an insured person pays for a specified covered healthcare service or prescription.

Correlation

Financial Planning Areas: Asset Allocation, Diversification, Portfolio Management, Risk Assessment.

Definition: A statistical measure of the degree to which two investments have historically moved in relation to one another.

Cost Basis

Financial Planning Areas: Tax Planning, Income Tax Planning, Investment Advisory Services, Portfolio Management.

Definition: An asset’s value for tax purposes, generally its purchase price adjusted for specified events, expenses, or improvements.

Cost-of-Living Adjustment (COLA)

Financial Planning Areas: Social Security, Retirement Income Planning, Pension Planning, Inflation Risk.

Definition: An increase intended to help a payment or benefit keep pace with changes in the cost of living, according to the governing formula.

Coverage Plans

Financial Planning Areas: Risk Assessment, Healthcare Benefits Coverage, Group Health Insurance, Disability Insurance.

Definition: Insurance or benefit arrangements intended to protect individuals or groups from specified financial risks.

Credit Risk

Financial Planning Areas: Fixed Income, Risk Assessment, Bond, Portfolio Management.

Definition: The risk that a borrower or bond issuer will fail to make required interest or principal payments.

Creditable Coverage

Financial Planning Areas:Healthcare Benefits Coverage, Medicare, Healthcare Planning, Risk Assessment.

Definition: Prescription drug coverage (such as through a current or former employer, union, or VA) that is expected to pay, on average, at least as much as standard Medicare Part D coverage; maintaining creditable coverage helps avoid late-enrollment penalties if enrolling in Part D later.

Custodian

Financial Planning Areas: Investment Advisory Services, Retirement Accounts, Portfolio Management, Wealth Management.

Definition: A qualified institution that holds and safeguards client assets, maintains records, and processes transactions.

Customized Financial Plan

Financial Planning Areas: Personal Financial Strategy, Holistic Financial Planning, Wealth Management, Financial Clarity.

Definition: A financial strategy tailored to a household’s or business’s goals, timeline, resources, tax situation, and risks.

Death Benefit

Financial Planning Areas: Life Insurance Planning, Estate & Legacy Planning, Beneficiary Coordination, Insurance Planning.

Definition: The amount payable under a life insurance policy or contract when a covered death occurs and policy conditions are met.

Debt Management

Financial Planning Areas: Personal Finance, Cash Flow Management, Financial Planning, Retirement Readiness.

Definition: The process of organizing liabilities and coordinating payments, interest costs, refinancing choices, and payoff priorities with other financial goals.

Deductible

Financial Planning Areas: Healthcare Benefits Coverage, Property Insurance, Insurance Planning, Personal Finance.

Definition: The amount an insured person generally must pay for covered expenses before specified insurance benefits begin.

Deferred Compensation

Financial Planning Areas: Business Financial Planning, Executive Benefits, Tax Planning, Retirement Planning.

Definition: An arrangement in which compensation is earned in one period and paid in a later period under applicable plan and tax rules.

Deferred Income Annuity (DIA)

Financial Planning Areas: Retirement Income Planning, Annuity, Longevity Risk, Income Strategies.

Definition: An annuity designed to begin guaranteed income payments at a future date in exchange for one or more earlier premium payments.

Defined Benefit Plan

Financial Planning Areas: Business Retirement Planning, Retirement Accounts, Pension, Employee Benefits.

Definition: An employer-sponsored retirement plan promising eligible participants a benefit generally determined by a formula based on compensation and service.

Disability Insurance

Financial Planning Areas: Risk Assessment, Employee Benefits, Coverage Plans, Personal Financial Strategy.

Definition: Insurance designed to replace part of earned income when a covered illness or injury prevents the insured from working.

Discovery Call

Financial Planning Areas: Financial Planning Consultation, Financial Advice, Second Opinion Planning, Personal Planning.

Definition: An introductory conversation used to understand goals, concerns, and current circumstances before determining appropriate next steps.

Diversification

Financial Planning Areas: Investment Advisory Services, Portfolio Management, Investment Planning, Risk Assessment.

Definition: Spreading investments among different holdings or asset classes to reduce dependence on any single investment; it does not guarantee against loss.

Dividend

Financial Planning Areas: Investment Planning, Income Strategies, Portfolio Management, Tax Planning.

Definition: A distribution of corporate earnings or fund income to shareholders, which may be paid in cash, additional shares, or another form.

Dividend Yield

Financial Planning Areas: Investment Planning, Income Strategies, Portfolio Management, Performance Measurement.

Definition: Annual dividends per share expressed as a percentage of the investment’s current market price.

Dollar-Cost Averaging

Financial Planning Areas: Investment Planning, Portfolio Management, Retirement Savings, Risk Assessment.

Definition: Investing a consistent dollar amount at regular intervals regardless of short-term market movements.

Donor-Advised Fund (DAF)

Financial Planning Areas: Charitable Giving, Tax Planning, Private Family Foundations, Estate & Legacy Planning.

Definition: A charitable account that allows a donor to make an irrevocable contribution, potentially claim a current deduction, and recommend grants over time.

Durable Power of Attorney

Financial Planning Areas: Estate & Legacy Planning, Legal Planning, Elder Care, Personal Planning.

Definition: A legal document authorizing an agent to manage specified affairs, with authority that generally continues during the principal’s incapacity.

Duration

Financial Planning Areas: Fixed Income, Interest Rate Risk, Bond Ladder, Portfolio Management.

Definition: A measure used to estimate a bond’s or fixed-income portfolio’s sensitivity to changes in interest rates.

Effective Tax Rate

Financial Planning Areas: Tax Planning, Income Tax Planning, Financial Strategy, Personal Finance.

Definition: A measure of taxes paid as a percentage of an applicable income amount; the calculation varies depending on the tax and income definition used.

Elder Care

Financial Planning Areas: Geriatric Care, Medicaid Planning, Long-Term Care Planning, Healthcare Planning.

Definition: Financial, healthcare, housing, and administrative planning addressing the changing needs of an aging person.

Elimination Period

Financial Planning Areas: Disability Insurance, Long-Term Care Insurance, Insurance Planning, Risk Assessment.

Definition: The waiting period after a qualifying event begins before eligible insurance benefits become payable.

Emergency Fund

Financial Planning Areas: Cash Flow Management, Personal Finance, Risk Assessment, Financial Organization.

Definition: Readily accessible money reserved for unexpected expenses or income disruption.

Employee Benefits

Financial Planning Areas: Business Financial Planning, Group Healthcare Benefits, Business Retirement Planning, Employee Retention.

Definition: Employer-provided compensation and protection programs beyond wages, potentially including health, retirement, disability, life insurance, and paid leave.

Employee Stock Ownership Plan (ESOP)

Financial Planning Areas: Business Retirement Planning, Business Succession, Employee Benefits, Business Valuation.

Definition: A qualified retirement plan designed to invest primarily in employer stock and potentially provide a market for business-owner shares.

Employer Matching Contribution

Financial Planning Areas: 401(k), Defined Contribution, Business Retirement Planning, Employee Benefits.

Definition: An employer retirement-plan contribution based on an employee’s contributions and the plan’s matching formula.

Equity

Financial Planning Areas: Investment Planning, Asset Allocation, Business Valuation, Personal Finance.

Definition: An ownership interest in an asset or business; for a household, equity commonly means asset value minus related debt.

ERISA

Financial Planning Areas: Business Retirement Planning, Employee Benefits, 401(k), Defined Contribution.

Definition: The Employee Retirement Income Security Act, a federal law establishing standards and protections for many private-sector benefit plans.

Estate & Legacy Planning

Financial Planning Areas: Legacy Planning, Wealth Management, Tax Planning, Personal Planning.

Definition: Coordinating the management and transfer of assets, responsibilities, intentions, and values during life, incapacity, and after death.

Estate Liquidity

Financial Planning Areas: Estate & Legacy Planning, Life Insurance Planning, Business Succession, Tax Planning.

Definition: Cash or readily marketable assets available to pay estate expenses, debts, taxes, equalization needs, and other obligations without forcing asset sales.

Estate Planning

Financial Planning Areas: Estate & Legacy Planning, Beneficiary Coordination, Legal Planning, Wealth Coordination.

Definition: Coordinating legal documents, ownership, beneficiary designations, tax considerations, and transfer instructions for incapacity and death.

Estate Tax

Financial Planning Areas: Estate Planning, Tax Planning, Wealth Management, Legacy Planning.

Definition: A tax that may be imposed on the value of a decedent’s taxable estate before or as assets transfer.

Estate Tax Exemption

Financial Planning Areas: Estate Planning, Estate Tax, Tax Planning, Legacy Planning.

Definition: The amount of an otherwise taxable estate that may be sheltered from federal estate tax under applicable law, reduced by certain lifetime taxable gifts.

ETF (Exchange-Traded Fund)

Financial Planning Areas: Investment Advisory Services, Investment Planning, Portfolio Management, Passive Investing.

Definition: A pooled investment security that trades on an exchange and may track an index, sector, commodity, strategy, or other asset group.

Executive Bonus Plan

Financial Planning Areas: Business Financial Planning, Executive Benefits, Business Succession, Employee Benefits.

Definition: An arrangement in which a business pays a bonus that an executive may use to fund personally owned insurance or another selected benefit.

Executor

Financial Planning Areas: Estate Planning, Will, Probate, Legacy Planning.

Definition: The person or institution appointed under a will and authorized by a court to administer the probate estate.

Expense Ratio

Financial Planning Areas: Investment Planning, Mutual Fund, ETF, Portfolio Management.

Definition: The annual operating expenses of a fund expressed as a percentage of its average net assets.

Family CFO

Financial Planning Areas: Holistic Financial Planning, Family Financial Planning, Wealth Coordination, Money Management.

Definition: An advisory approach in which one coordinating professional or team helps organize the major financial decisions of a family.

Family Financial Planning

Financial Planning Areas: Holistic Financial Planning, Personal Financial Strategy, Life Transition Planning, Money Management.

Definition: Developing coordinated strategies for a family’s cash flow, education, retirement, protection, taxes, and legacy goals.

Family Foundation

Financial Planning Areas: Estate & Legacy Planning, Charitable Giving, Tax Planning, Wealth Management.

Definition: A private charitable entity established and funded by a family to pursue philanthropic objectives across time.

FDIC Insurance

Financial Planning Areas: Cash Management, Financial Organization, Risk Assessment, Personal Finance.

Definition: Deposit insurance provided by the Federal Deposit Insurance Corporation for eligible deposit accounts at member banks, subject to ownership categories and coverage limits.

Fee-Based Advisor

Financial Planning Areas: Financial Advice, Investment Advisory Services, Professional Specialties, Personal Planning.

Definition: A professional whose compensation may include advisory fees, planning fees, commissions, or a combination; disclosures should be reviewed to understand costs and conflicts.

Feliciano Financial Blueprint™

Financial Planning Areas: Comprehensive Retirement Plan, Holistic Financial Planning, Financial Strategy, Customized Financial Plan.

Definition: The proprietary coordination process used by Feliciano Financial to integrate retirement, income, investments, taxes, healthcare, insurance, and estate and legacy considerations into one synchronized blueprint.

Fiduciary

Financial Planning Areas: Professional Specialties, Investment Advisory Services, Financial Advice, Wealth Management.

Definition: A person or organization required to act in a client’s best interest within the scope of an applicable fiduciary relationship, including duties of care and loyalty.

Financial Advice

Financial Planning Areas: Financial Strategy, Investment Advisory Services, Personal Planning, Holistic Financial Planning.

Definition: Professional guidance intended to help a client make informed financial decisions, subject to the provider’s scope, licenses, and applicable standard of conduct.

Financial Advisor

Financial Planning Areas: Financial Advice, Investment Advisory Services, Retirement Planning, Wealth Management.

Definition: A broad term for a professional who may provide planning, investment, insurance, retirement, or related guidance depending on credentials, licenses, and services.

Financial Blind Spots

Financial Planning Areas: Risk Assessment, Second Opinion Planning, Financial Clarity, Comprehensive Retirement Plan.

Definition: Overlooked risks, exposures, conflicts, or planning gaps that could impair financial objectives if unaddressed.

Financial Clarity

Financial Planning Areas: Financial Organization, Holistic Financial Planning, Personal Financial Strategy, Money Management.

Definition: A clear understanding of financial resources, obligations, risks, choices, and priorities.

Financial Confidence

Financial Planning Areas: Personal Planning, Financial Peace of Mind, Financial Clarity, Comprehensive Retirement Plan.

Definition: The informed sense of control that can result from understanding and implementing a coordinated, adaptable financial plan.

Financial Organization

Financial Planning Areas: Money Management, Personal Finance, Family CFO, Wealth Coordination.

Definition: Centralizing and maintaining financial documents, account information, ownership records, cash flows, and instructions.

Financial Peace of Mind

Financial Planning Areas: Holistic Financial Planning, Personal Financial Strategy, Asset Protection, Retirement Readiness.

Definition: Reduced financial stress that may result from organized resources, risk preparation, and an actionable long-term plan.

Financial Plan

Financial Planning Areas: Holistic Financial Planning, Customized Financial Plan, Financial Strategy, Personal Financial Strategy.

Definition: An organized framework connecting goals, cash flow, investments, retirement, taxes, insurance, healthcare, and estate considerations into coordinated decisions.

Financial Planner

Financial Planning Areas: Holistic Financial Planning, Personal Financial Strategy, Retirement Planning, Professional Specialties.

Definition: A professional who evaluates a client’s broader financial situation and develops coordinated strategies for financial and life goals.

Financial Planning

Financial Planning Areas: Holistic Financial Planning, Personal Financial Strategy, Retirement Planning, Wealth Coordination.

Definition: An ongoing process of clarifying goals, evaluating resources and risks, developing and implementing strategies, and monitoring progress.

Financial Planning Consultation

Financial Planning Areas: Financial Advice, Discovery Call, Second Opinion Planning, Customized Financial Plan.

Definition: A conversation to clarify goals, review existing arrangements, identify potential gaps, and understand possible next steps.

Financial Strategy

Financial Planning Areas: Personal Financial Strategy, Business Financial Planning, Wealth Management, Income Strategies.

Definition: A coordinated roadmap for using income, assets, tax planning, and risk protection to pursue defined goals.

FINRA

Financial Planning Areas: Professional Specialties, Broker-Dealer, Securities, Investor Protection.

Definition: The Financial Industry Regulatory Authority, a self-regulatory organization overseeing registered broker-dealers and securities representatives in the United States.

Fixed Annuity

Financial Planning Areas: Annuity, Retirement Income Planning, Insurance Planning, Income Strategies.

Definition: An insurance contract that credits interest or provides payments under guarantees stated by the insurer, subject to contract terms and claims-paying ability.

Fixed Income

Financial Planning Areas: Investment Advisory Services, Asset Allocation, Income Strategies, Bond Ladder.

Definition: Investments such as bonds that generally promise stated interest payments and return of principal subject to issuer, market, and other risks.

Flexible Spending Account (FSA)

Financial Planning Areas: Healthcare Benefits, Employee Benefits, Tax Planning, Personal Finance.

Definition: An employer-sponsored account that allows eligible medical or dependent-care expenses to be paid with pretax dollars, subject to plan rules.

Form CRS

Financial Planning Areas: Professional Specialties, Investment Advisory Services, Broker-Dealer, Fiduciary.

Definition: A standardized relationship summary describing a financial firm’s services, fees, conflicts, disciplinary history, and standards of conduct.

Formularies

Financial Planning Areas: Medicare Part D, Healthcare Benefits Coverage, Prescription Drug Coverage, Healthcare Planning.

Definition: A health or drug plan’s list of covered prescription medications, commonly organized into cost-sharing tiers and utilization rules.

Free Assessment

Financial Planning Areas: Second Opinion Planning, Financial Advice, Professional Specialties, Personal Planning.

Definition: An initial complimentary evaluation intended to identify major questions, concerns, or planning areas without requiring an ongoing engagement.

Free Consultation

Financial Planning Areas: Professional Specialties, Financial Advice, Discovery Call, Personal Planning.

Definition: A no-cost introductory meeting used to discuss goals, concerns, services, and possible next steps.

General Account

Financial Planning Areas: Annuity, Life Insurance Planning, Fixed Insurance Products, Risk Assessment.

Definition: The insurance company’s investment account that supports guarantees under specified fixed insurance and annuity contracts.

Generation-Skipping Transfer Tax (GSTT)

Financial Planning Areas: Estate & Legacy Planning, Tax Planning, Multigenerational Wealth Planning, Trust.

Definition: A federal transfer tax that may apply to certain gifts or bequests to beneficiaries two or more generations below the transferor or to specified trusts.

Geriatric Care

Financial Planning Areas: Elder Care, Nursing Home Financial Planning, Healthcare Benefits, Long-Term Care Planning.

Definition: Coordinated healthcare and support services addressing the needs of older adults.

Gift Tax

Financial Planning Areas: Tax Planning, Estate & Legacy Planning, Legacy Planning, Wealth Management.

Definition: A federal tax system governing certain transfers made for less than full consideration during life, subject to exclusions, exemptions, and reporting rules.

Goals-Based Planning

Financial Planning Areas: Holistic Financial Planning, Customized Financial Plan, Financial Strategy, Personal Planning.

Definition: A planning approach that begins with the client’s desired outcomes and coordinates financial decisions around the priority, timing, and funding of those goals.

Grantor

Financial Planning Areas: Estate & Legacy Planning, Legal Planning, Trust, Asset Protection.

Definition: A grantor is an individual or entity that transfers property or asset ownership to another person or legal structure, such as a trust or deed.

Grantor Retained Annuity Trust (GRAT)

Financial Planning Areas: Estate & Legacy Planning, Tax Planning, Trust, Multigenerational Wealth Planning.

Definition: An irrevocable trust in which the grantor retains a fixed annuity interest for a term and any remaining value passes to designated beneficiaries.

Group Health Insurance

Financial Planning Areas: Healthcare Benefits Coverage, Group Healthcare Benefits, Business Financial Planning, Employee Benefits.

Definition: Health coverage offered to an eligible group, commonly employees and eligible dependents, under a group contract.

Group Healthcare Benefits

Financial Planning Areas: Group Health Insurance, Business Financial Planning, Employee Benefits, Coverage Plans.

Definition: A package of employer-sponsored medical, dental, vision, wellness, or related health benefits.

Guaranteed Income

Financial Planning Areas: Retirement Income Planning, Pension, Annuity, Social Security.

Definition: Income promised under a contract or government program, subject to its terms, funding source, and the payer’s legal obligations or claims-paying ability.

Guardianship

Financial Planning Areas: Estate Planning, Elder Care, Special Needs Planning, Legal Planning.

Definition: A court-supervised legal relationship authorizing a person to make specified personal decisions for someone found unable to manage them independently.

Health Insurance Marketplace

Financial Planning Areas: Individual Health Insurance, Healthcare Planning, Premium Tax Credit, Life Transition Planning.

Definition: A federal or state platform through which individuals and families may compare and enroll in eligible health plans and determine potential financial assistance.

Health Reimbursement Arrangement (HRA)

Financial Planning Areas: Healthcare Benefits, Group Healthcare Benefits, Employee Benefits, Tax Planning.

Definition: An employer-funded arrangement that reimburses employees for eligible medical expenses and, depending on plan design, certain premiums.

Health Savings Account (HSA)

Financial Planning Areas: Healthcare Benefits Coverage, Tax Planning, Individual Health Insurance, Personal Finance.

Definition: A tax-advantaged account available to eligible individuals covered by a qualifying high-deductible health plan for qualified medical expenses.

Healthcare Benefits

Financial Planning Areas: Group Healthcare Benefits, Individual Health Insurance, Coverage Plans, Healthcare Benefits Coverage.

Definition: Insurance, services, reimbursements, and wellness support provided through individual or employer arrangements.

Healthcare Benefits Coverage

Financial Planning Areas: Healthcare Benefits, Group Health Insurance, Healthcare Insurance, Coverage Plans.

Definition: The medical services, treatments, prescriptions, procedures, limits, and exclusions addressed by a health plan.

Healthcare Insurance

Financial Planning Areas: Individual Health Insurance, Group Health Insurance, Healthcare Benefits Coverage, Risk Assessment.

Definition: Contractual coverage designed to help pay eligible healthcare expenses according to policy terms.

Healthcare Planning

Financial Planning Areas: Retirement Planning, Healthcare Benefits, Long-Term Care Planning, Personal Financial Strategy.

Definition: Coordinating health coverage, Medicare decisions, medical expenses, long-term care risks, and healthcare savings with the overall plan.

High-Deductible Health Plan (HDHP)

Financial Planning Areas: Healthcare Benefits Coverage, Health Savings Account, Individual Health Insurance, Group Health Insurance.

Definition: A health plan meeting applicable deductible and out-of-pocket requirements that may permit an eligible individual to contribute to an HSA.

High-Net-Worth Financial Planning

Financial Planning Areas: Wealth Management, Estate & Legacy Planning, Tax Planning, Individual Wealth Management.

Definition: Comprehensive planning for people with significant assets, multiple accounts, business interests, complex tax issues, or multigenerational goals.

Holding Period

Financial Planning Areas: Investment Planning, Capital Gains Tax, Tax Planning, Portfolio Management.

Definition: The length of time an asset is owned, which can affect risk, strategy, and the tax characterization of gain or loss.

Holistic Financial Planning

Financial Planning Areas: Personal Financial Strategy, Comprehensive Retirement Plan, Wealth Management, Family CFO.

Definition: An advisory approach that considers taxes, investments, retirement, insurance, healthcare, estate matters, cash flow, and life goals together.

In-Service Distribution

Financial Planning Areas: Retirement Accounts, 401(k), Retirement Planning, Rollover Planning.

Definition: A distribution permitted by an employer retirement plan while the participant is still employed, subject to plan terms and tax rules.

Income Planning

Financial Planning Areas: Retirement Income Plan, Income Strategies, Tax Planning, Cash Flow Management.

Definition: Coordinating earnings, Social Security, pensions, investments, retirement accounts, and other resources to meet spending needs.

Income Sequencing

Financial Planning Areas: Retirement Income Planning, Tax Planning, Retirement Accounts, Wealth Management.

Definition: Determining the order and timing in which income sources and account types are used while managing taxes, risk, and sustainability.

Income Strategies

Financial Planning Areas: Retirement Income Plan, Retirement Planning, Money Management, Investment Advisory Services.

Definition: Methods for converting financial resources into sustainable cash flow while coordinating taxes, risk, liquidity, and longevity.

Income Tax Planning

Financial Planning Areas: Tax Planning, Personal Finance, Wealth Management, Money Management.

Definition: Coordinating financial decisions to manage current and future income-tax exposure within applicable law.

Index Fund

Financial Planning Areas: Passive Investing, Investment Advisory Services, Portfolio Management, Asset Allocation.

Definition: A mutual fund or ETF designed to track a specified market index.

Indexed Universal Life Insurance

Financial Planning Areas: Life Insurance Planning, Permanent Insurance, Cash Value Insurance, Insurance Planning.

Definition: Permanent life insurance whose interest-crediting method is linked in part to an external market index, subject to caps, floors, participation rates, charges, and policy terms.

Individual Health Insurance

Financial Planning Areas: Healthcare Insurance, Healthcare Benefits, Personal Planning, Risk Assessment.

Definition: Health coverage purchased outside an employer group plan for an individual or family.

Individual Wealth Management

Financial Planning Areas: Wealth Management, Personal Financial Strategy, Money Management, Portfolio Management.

Definition: Coordinated investment, tax-aware, risk, estate, and financial-planning services tailored to an individual or household.

Individualized Retirement Plan

Financial Planning Areas: Retirement Planning, Comprehensive Retirement Plan, Personal Planning, Personal Retirement.

Definition: A retirement strategy built around a household’s age, resources, timing, taxes, risks, and desired lifestyle.

Inflation Risk

Financial Planning Areas: Risk Assessment, Retirement Income Planning, Money Management, Investment Planning.

Definition: The risk that rising prices will reduce future purchasing power.

Initial Enrollment Period (IEP)

Financial Planning Areas: Medicare, Medicare Enrollment Period, Healthcare Planning, Personal Planning.

Definition: The seven-month window surrounding an individual’s 65th birthday, including the three months before, the month of, and the three months after, during which eligible individuals can first sign up for Medicare Part A and Part B.

Insurable Interest

Financial Planning Areas: Life Insurance Planning, Insurance Planning, Business Financial Planning, Estate Planning.

Definition: A legally recognized financial or relational interest in the continued life, health, or property of the person or asset being insured.

Insurance Planning

Financial Planning Areas: Risk Assessment, Life Insurance Planning, Healthcare Planning, Asset Protection.

Definition: Identifying financial risks, reviewing existing protection, locating gaps or overlaps, and coordinating coverage with the overall plan.

Insurance Premium

Financial Planning Areas: Insurance Planning, Cash Flow Management, Healthcare Benefits, Risk Assessment.

Definition: The amount paid to obtain or maintain insurance coverage under the policy or contract.

Insurance Specialist

Financial Planning Areas: Professional Specialties, Insurance Planning, Healthcare Benefits, Life Insurance Planning.

Definition: A licensed professional who helps evaluate insurance needs, compare coverage, and understand policy costs, benefits, exclusions, and limitations.

Interest Rate Risk

Financial Planning Areas: Risk Assessment, Fixed Income, Bond Ladder, Investment Advisory Services.

Definition: The risk that changing interest rates will affect an investment’s market value, income, or reinvestment opportunities.

Intestacy

Financial Planning Areas: Estate Planning, Probate, Legacy Planning, Legal Planning.

Definition: The condition of dying without a valid will governing probate property, causing state law to determine heirs and distributions.

Investment Adviser

Financial Planning Areas: Investment Advisory Services, Fiduciary, Professional Specialties, Portfolio Management.

Definition: A person or firm in the business of providing investment advice for compensation and subject to applicable registration or exemption requirements.

Investment Advisory Services

Financial Planning Areas: Portfolio Management, Wealth Management, Investment Planning, Professional Specialties.

Definition: Investment guidance and oversight that may include portfolio construction, research, monitoring, rebalancing, and trade execution.

Investment Management

Financial Planning Areas: Investment Advisory Services, Portfolio Management, Asset Allocation, Wealth Management.

Definition: The ongoing selection, monitoring, rebalancing, and oversight of investments according to goals, risk, time horizon, and planning needs.

Investment Planning

Financial Planning Areas: Asset Allocation, Portfolio Management, Wealth Management, Financial Strategy.

Definition: Defining goals and matching them with investments, risk parameters, tax considerations, liquidity needs, and monitoring processes.

Investment Policy Statement

Financial Planning Areas: Investment Planning, Portfolio Management, Risk Assessment, Wealth Management.

Definition: A written statement of investment objectives, risk tolerance, time horizon, liquidity needs, allocation guidelines, and responsibilities.

IRA (Individual Retirement Account)

Financial Planning Areas: Retirement Accounts, Personal Retirement, Individualized Retirement Plans, Tax Planning.

Definition: A tax-advantaged individual retirement account whose contribution and distribution treatment depends on account type and eligibility.

IRMAA

Financial Planning Areas: Medicare, Tax Planning, Retirement Income Planning, Healthcare Planning.

Definition: The Income-Related Monthly Adjustment Amount, an additional Medicare Part B and Part D charge that may apply based on income.

Irrevocable Life Insurance Trust (ILIT)

Financial Planning Areas: Estate & Legacy Planning, Life Insurance Planning, Trust, Tax Planning.

Definition: An irrevocable trust designed to own or receive life insurance and administer policy proceeds under its terms, often for estate-liquidity or legacy objectives.

Irrevocable Trust

Financial Planning Areas: Estate Planning, Asset Protection, Legacy Planning, Trust.

Definition: A trust that generally cannot be freely revoked or amended by the grantor after creation, subject to its terms and applicable law.

Joint Tenancy With Right of Survivorship

Financial Planning Areas: Estate Planning, Asset Titling, Beneficiary Coordination, Probate.

Definition: A form of joint ownership in which a deceased owner’s interest generally passes automatically to the surviving joint owner or owners.

Key Employee Retention

Financial Planning Areas: Business Financial Planning, Employee Benefits, Deferred Compensation, Business Succession.

Definition: Strategies intended to recruit, reward, and retain employees whose skills, relationships, or leadership are important to business continuity and value.

Key Person Insurance

Financial Planning Areas: Business Financial Planning, Business Succession, Risk Assessment, Life Insurance Planning.

Definition: Life or disability insurance owned by a business to help offset the financial consequences of losing a critical owner or employee.

Late Enrollment Penalty (Medicare)

Financial Planning Areas: Medicare, Healthcare Planning, Prescription Drug Coverage, Retirement Planning.

Definition: An additional premium that may apply when an eligible person delays certain Medicare enrollment without qualifying coverage or an available exception.

Legacy Planning

Financial Planning Areas: Estate & Legacy Planning, Wealth Coordination, Personal Planning, Family CFO.

Definition: Preparing for the transfer of financial assets, business interests, values, charitable intentions, information, and responsibilities.

Liability Exposure

Financial Planning Areas: Risk Assessment, Asset Protection, Business Financial Planning, Umbrella Liability.

Definition: The possibility of financial loss from legal responsibility for injury, damage, contracts, business activities, or other claims.

Life Expectancy

Financial Planning Areas: Retirement Planning, Longevity Risk, Social Security, Long-Term Care Planning.

Definition: A statistical estimate of remaining lifetime used as one planning input; individual outcomes may vary significantly.

Life Insurance

Financial Planning Areas: Life Insurance Planning, Term Insurance, Permanent Insurance, Risk Assessment.

Definition: A contract under which an insurer pays a death benefit to designated beneficiaries when policy requirements are satisfied.

Life Insurance Planning

Financial Planning Areas: Risk Assessment, Estate & Legacy Planning, Personal Planning, Insurance Planning.

Definition: Evaluating survivor needs, obligations, legacy goals, policy ownership, beneficiary designations, and available insurance structures.

Life Insurance Rider

Financial Planning Areas: Life Insurance Planning, Insurance Planning, Disability Insurance, Long-Term Care Planning.

Definition: An optional policy provision that adds, modifies, or limits coverage, benefits, or obligations under the base contract.

Life Transition Planning

Financial Planning Areas: Personal Planning, Holistic Financial Planning, Retirement Readiness, Financial Organization.

Definition: Financial coordination around major changes such as retirement, divorce, widowhood, inheritance, career change, or business sale.

Liquidity

Financial Planning Areas: Cash Flow Management, Retirement Income Planning, Investment Planning, Risk Assessment.

Definition: The ability to access cash or convert an asset into cash within an appropriate period without a substantial loss in value.

Living Trust

Financial Planning Areas: Estate & Legacy Planning, Trust, Revocable Trust, Probate.

Definition: A trust created during life to hold and manage assets under its terms; funded assets may avoid probate at death.

Long-Term Capital Gain

Financial Planning Areas: Capital Gains Tax, Tax Planning, Investment Planning, Wealth Management.

Definition: A gain from selling a capital asset held longer than the period required for long-term treatment under current tax law.

Long-Term Care

Financial Planning Areas: Long-Term Care Planning, Elder Care, Nursing Home Financial Planning, Healthcare Benefits Coverage.

Definition: Medical and nonmedical support for people who need ongoing help with activities of daily living or supervision.

Long-Term Care Insurance

Financial Planning Areas: Long-Term Care Planning, Elder Care, Asset Protection, Healthcare Planning.

Definition: Insurance designed to help pay eligible extended-care services at home or in qualified care settings.

Long-Term Care Planning

Financial Planning Areas: Healthcare Planning, Elder Care, Medicaid Planning, Risk Assessment.

Definition: Preparing for potential extended-care needs through insurance, savings, family coordination, legal planning, or other resources.

Longevity Risk

Financial Planning Areas: Retirement Income Planning, Income Strategies, Long-Term Care Planning, Risk Assessment.

Definition: The risk that a person lives longer than anticipated and outlasts available income or resources.

Lump-Sum Distribution

Financial Planning Areas: Retirement Accounts, Pension Planning, Retirement Income Planning, Tax Planning.

Definition: A single distribution of some or all benefits from a retirement plan or pension instead of receiving a series of payments.

Marginal Tax Rate

Financial Planning Areas: Tax Planning, Income Tax Planning, Personal Finance, Money Management.

Definition: The tax rate applicable to the next dollar of taxable income within a progressive tax system.

Market Capitalization

Financial Planning Areas: Investment Planning, Asset Allocation, Portfolio Management, Equity.

Definition: The total market value of a public company’s outstanding shares, calculated by multiplying share price by shares outstanding.

Market Risk

Financial Planning Areas: Risk Assessment, Investment Planning, Portfolio Management, Wealth Management.

Definition: The possibility that investments lose value because of broad market, economic, interest-rate, or sentiment changes.

Market Value

Financial Planning Areas: Investment Planning, Business Valuation, Estate Planning, Financial Organization.

Definition: The price an asset could command in a current market; the precise valuation standard depends on the planning, tax, legal, or accounting purpose.

Medicaid Planning

Financial Planning Areas: Elder Care, Nursing Home Financial Planning, Asset Protection, Long-Term Care Planning.

Definition: Planning intended to address long-term care and Medicaid eligibility while complying with transfer, look-back, income, and asset rules.

Medical Power of Attorney

Financial Planning Areas: Estate Planning, Elder Care, Personal Planning, Healthcare Planning.

Definition: A legal document authorizing a named agent to make healthcare decisions when the principal cannot do so.

Medicare

Financial Planning Areas: Healthcare Benefits, Retirement Planning, Elder Care, Personal Finance.

Definition: The federal health-insurance program primarily serving people age 65 or older and certain younger people with qualifying disabilities or conditions.

Medicare Part C

Financial Planning Areas: Medicare, Healthcare Benefits Coverage, Coverage Plans, Healthcare Insurance.

Definition: The official program designation for Medicare Advantage, allowing private insurance plans approved by Medicare to deliver Part A and Part B benefits, often bundled with Part D prescription coverage and additional routine wellness benefits.

Medicare Advantage

Financial Planning Areas: Healthcare Benefits Coverage, Coverage Plans, Healthcare Insurance, Individual Health Insurance.

Definition: A private-plan alternative to Original Medicare that provides Part A and Part B benefits and may include prescription-drug or supplemental benefits.

Medicare Advantage Open Enrollment Period

Financial Planning Areas: Medicare Advantage, Healthcare Planning, Medicare, Retirement Planning.

Definition: The annual period when a person already enrolled in Medicare Advantage may make specified plan changes or return to Original Medicare.

Medicare Enrollment Period

Financial Planning Areas: Medicare, Healthcare Planning, Retirement Planning, Life Transition Planning.

Definition: A designated period during which an eligible person may enroll in Medicare or change certain coverage, subject to applicable rules.

Medicare Part A

Financial Planning Areas: Medicare, Healthcare Benefits Coverage, Retirement Planning, Elder Care.

Definition: The Medicare component primarily covers eligible inpatient hospitals, skilled nursing facilities, hospice, and certain home-health services.

Medicare Part B

Financial Planning Areas: Medicare, Healthcare Benefits Coverage, Retirement Planning, Elder Care.

Definition: The Medicare component primarily covers eligible physician, outpatient, preventive, and certain medical-equipment services.

Medicare Part C

Financial Planning Areas: Medicare Advantage, Healthcare Benefits Coverage, Healthcare Planning, Retirement Planning.

Definition: Another name for Medicare Advantage, through which approved private plans provide Part A and Part B benefits and often additional coverage.

Medicare Special Enrollment Period

Financial Planning Areas: Medicare, Healthcare Planning, Life Transition Planning, Employee Benefits.

Definition: A period outside standard Medicare enrollment windows when a qualifying event permits enrollment or plan changes.

Medicare Supplement (Medigap)

Financial Planning Areas: Healthcare Insurance, Coverage Plans, Healthcare Benefits Coverage, Individual Health Insurance.

Definition: Private supplemental insurance designed to help pay certain out-of-pocket costs not paid by Original Medicare.

Modified Adjusted Gross Income (MAGI)

Financial Planning Areas: Tax Planning, Medicare Planning, Roth IRA, Healthcare Planning.

Definition: Adjusted gross income modified by adding or excluding specified items for a particular tax, Medicare, or benefit-eligibility calculation.

Modified Endowment Contract (MEC)

Financial Planning Areas: Life Insurance Planning, Cash Value Insurance, Tax Planning, Insurance Planning.

Definition: A life insurance contract that fails the federal premium test for favorable distribution ordering and is subject to different tax rules for loans and withdrawals.

Money Management

Financial Planning Areas: Cash Flow Management, Personal Finance, Financial Organization, Wealth Management.

Definition: The ongoing discipline of managing cash, expenses, reserves, debt, saving, and investing.

Money Market Fund

Financial Planning Areas: Investment Planning, Cash Management, Mutual Fund, Liquidity.

Definition: A mutual fund investing in short-term, high-quality debt instruments; it is an investment security and is not the same as an FDIC-insured bank deposit.

Monte Carlo Analysis

Financial Planning Areas: Retirement Planning, Investment Planning, Risk Assessment, Financial Strategy.

Definition: A modeling technique that evaluates a plan across many possible combinations of returns, inflation, longevity, and other assumptions.

Multigenerational Wealth Planning

Financial Planning Areas: Estate & Legacy Planning, Family Financial Planning, Wealth Coordination, Charitable Giving.

Definition: Coordinating the preservation, stewardship, education, and transfer of assets and values across generations.

Mutual Fund

Financial Planning Areas: Investment Advisory Services, Investment Planning, Portfolio Management, Retirement Accounts.

Definition: A pooled investment vehicle combining money from investors to purchase securities according to stated objectives.

Net Asset Value (NAV)

Financial Planning Areas: Mutual Fund, ETF, Investment Planning, Portfolio Management.

Definition: The per-share value of a fund’s assets minus liabilities, calculated according to the fund’s valuation procedures.

Net Investment Income Tax (NIIT)

Financial Planning Areas: Tax Planning, Investment Planning, High-Net-Worth Financial Planning, Income Tax Planning.

Definition: An additional federal tax that may apply to certain net investment income when a taxpayer’s modified adjusted gross income exceeds applicable thresholds.

Net Worth

Financial Planning Areas: Personal Finance, Financial Organization, Wealth Management, Financial Clarity.

Definition: Total assets minus total liabilities at a specified point in time.

Nondeductible IRA Contribution

Financial Planning Areas: IRA, Retirement Accounts, Tax Planning, Roth Conversion.

Definition: A traditional IRA contribution for which no current income-tax deduction is claimed, requiring accurate basis tracking for future distributions or conversions.

Nonqualified Account

Financial Planning Areas: Investment Planning, Tax Planning, Portfolio Management, Wealth Management.

Definition: An account without the general tax treatment of a qualified retirement plan, usually funded with after-tax money.

Nonqualified Deferred Compensation Plan

Financial Planning Areas: Business Financial Planning, Executive Benefits, Tax Planning, Key Employee Retention.

Definition: An employer arrangement that defers compensation outside a tax-qualified retirement plan and is governed by plan terms and applicable tax rules.

Nonqualified Stock Option

Financial Planning Areas: Executive Benefits, Business Financial Planning, Tax Planning, Equity Compensation.

Definition: An employer-granted right to purchase company stock at a stated price that does not receive incentive-stock-option tax treatment.

Nursing Home Financial Planning

Financial Planning Areas: Elder Care, Long-Term Care Planning, Medicaid Planning, Asset Protection.

Definition: Developing strategies for nursing-facility costs using income, assets, insurance, family support, or public benefits when eligible.

Ordinary Income

Financial Planning Areas: Income Tax Planning, Tax Planning, Retirement Accounts, Personal Finance.

Definition: Income taxed under ordinary income-tax rates rather than preferential capital-gain rates, subject to applicable classifications and rules.

Original Medicare

Financial Planning Areas: Medicare, Healthcare Planning, Medicare Part A, Medicare Part B.

Definition: The federal fee-for-service Medicare program consisting primarily of Part A hospital coverage and Part B medical coverage.

Out-of-Pocket Maximum

Financial Planning Areas: Healthcare Benefits Coverage, Medicare Advantage, Insurance Planning, Personal Finance.

Definition: The maximum amount an insured person must pay for specified covered in-network services during a plan year before the plan pays according to its terms.

Part D (Medicare)

Financial Planning Areas: Healthcare Benefits Coverage, Coverage Plans, Healthcare Insurance, Elder Care.

Definition: The Medicare program component providing prescription-drug coverage through approved private plans.

Part D Late Enrollment Penalty

Financial Planning Areas: Medicare, Part D (Medicare), Healthcare Planning, Risk Assessment.

Definition: An additional fee added to a beneficiary’s monthly Medicare Part D premium if they go 63 or more consecutive days without Medicare drug coverage or other creditable prescription coverage after their Initial Enrollment Period ends.

Passive Income

Financial Planning Areas: Income Planning, Cash Flow Management, Investment Planning, Retirement Planning.

Definition: Income produced by assets, investments, rental property, or business arrangements rather than direct wages, with tax treatment depending on its source.

Passive Investing

Financial Planning Areas: Investment Advisory Services, Index Fund, Asset Allocation, Portfolio Management.

Definition: An approach that generally seeks broad market exposure with limited trading, commonly through index-based investments.

Payable-on-Death (POD) Designation

Financial Planning Areas: Estate Planning, Beneficiary Coordination, Cash Management, Probate.

Definition: An account registration directing eligible assets to named beneficiaries at the owner’s death, generally outside probate.

Pension

Financial Planning Areas: Retirement Accounts, Business Retirement Planning, Income Strategies, Retirement Income Plan.

Definition: An employer-sponsored retirement arrangement that may provide benefits based on compensation, service, contributions, or plan terms.

Pension Planning

Financial Planning Areas: Retirement Income Planning, Income Strategies, Retirement Readiness, Tax Planning.

Definition: Evaluating pension commencement, survivor options, lump-sum alternatives, taxes, and coordination with other income.

Per Capita Distribution

Financial Planning Areas: Estate Planning, Beneficiary Coordination, Legacy Planning, Trust.

Definition: A distribution method under which living beneficiaries at the specified generational level generally receive equal shares.

Per Stirpes Distribution

Financial Planning Areas: Estate Planning, Beneficiary Coordination, Legacy Planning, Trust.

Definition: A distribution method under which a deceased beneficiary’s share generally passes to that beneficiary’s descendants by family branch.

Permanent Insurance

Financial Planning Areas: Life Insurance Planning, Cash Value Insurance, Estate Planning, Insurance Planning.

Definition: Life insurance designed to remain in force for life if required premiums and policy conditions are satisfied, often with cash value.

Personal Finance

Financial Planning Areas: Money Management, Cash Flow Management, Personal Planning, Financial Organization.

Definition: Managing household income, spending, saving, debt, investing, insurance, taxes, and retirement preparation.

Personal Financial Strategy

Financial Planning Areas: Holistic Financial Planning, Financial Strategy, Wealth Management, Personal Planning.

Definition: A customized roadmap aligning goals, cash flow, debt, investments, taxes, and risk protection.

Personal Planning

Financial Planning Areas: Personal Financial Strategy, Life Transition Planning, Holistic Financial Planning, Family CFO.

Definition: Financial planning organized around an individual’s or family’s personal goals and responsibilities.

Personal Retirement

Financial Planning Areas: Retirement Accounts, Individualized Retirement Plans, Retirement Savings, Retirement Readiness.

Definition: Planning and managing retirement resources around an individual’s or household’s needs rather than only an employer plan.

Plan G / Plan N

Financial Planning Areas: Medicare Supplement (Medigap), Healthcare Insurance, Coverage Plans, Healthcare Benefits Coverage.

Definition: Two standardized private Medicare Supplement Insurance (Medigap) options designed to help pay specific out-of-pocket costs not covered by Original Medicare, differing primarily in their coverage of co-payments and excess charges.

Planning Before Products

Financial Planning Areas: Holistic Financial Planning, Fiduciary, Customized Financial Plan, Financial Clarity.

Definition: The principle that goals, risks, taxes, and strategy should be understood before specific financial products are selected.

Portfolio

Financial Planning Areas: Investment Planning, Portfolio Management, Asset Allocation, Wealth Management.

Definition: The combined collection of investments owned by an individual, family, trust, retirement plan, or institution.

Portfolio Management

Financial Planning Areas: Investment Advisory Services, Investment Planning, Asset Allocation, Wealth Management.

Definition: Selecting, monitoring, and adjusting investments to pursue objectives within defined risk and planning constraints.

Premium Tax Credit

Financial Planning Areas: Healthcare Planning, Health Insurance Marketplace, Tax Planning, Individual Health Insurance.

Definition: A refundable federal tax credit that may help eligible households pay premiums for qualifying Marketplace health coverage.

Present Value

Financial Planning Areas: Financial Planning, Retirement Income Planning, Business Valuation, Investment Planning.

Definition: The current value of a future payment or stream of payments discounted using an assumed rate and timing.

Prior Authorization

Financial Planning Areas: Healthcare Benefits Coverage, Medicare Advantage, Prescription Drug Coverage, Healthcare Planning.

Definition: A health-plan requirement that approval be obtained before specified services, procedures, equipment, or prescriptions are covered.

Private Family Foundation

Financial Planning Areas: Estate & Legacy Planning, Charitable Giving, Tax Planning, Wealth Management.

Definition: A private charitable legal entity established and funded by a family to conduct grantmaking or other philanthropic activities.

Pro-Rata Rule

Financial Planning Areas: Roth Conversion, IRA, Tax Planning, Retirement Accounts.

Definition: A tax rule generally requiring taxable and nontaxable amounts across specified IRAs to be proportionally included when distributions or conversions occur.

Probability of Success

Financial Planning Areas: Retirement Planning, Monte Carlo Analysis, Scenario Analysis, Financial Strategy.

Definition: A planning-model result showing the percentage of simulated scenarios in which modeled resources support stated goals under selected assumptions; it is not a guarantee.

Probate

Financial Planning Areas: Estate Planning, Living Trust, Legal Planning, Legacy Planning.

Definition: The court-supervised process of validating a will when applicable, administering an estate, resolving claims, and distributing probate assets.

Probate Estate

Financial Planning Areas: Estate Planning, Probate, Will, Beneficiary Coordination.

Definition: Assets subject to administration through probate following an individual’s death.

Professional Specialties

Financial Planning Areas: Team of Specialists, Investment Advisory Services, Business Financial Planning, Financial Advice.

Definition: Distinct professional credentials and capabilities that may be coordinated across planning, investments, insurance, tax, and legal disciplines.

Property Insurance

Financial Planning Areas: Risk Assessment, Asset Protection, Coverage Plans, Business Financial Planning.

Definition: Insurance protecting covered property against specified damage or loss and sometimes related liability claims.

Qualified Account

Financial Planning Areas: Retirement Accounts, Tax Planning, Business Retirement Planning, Personal Retirement.

Definition: A retirement account or plan that satisfies applicable federal requirements and receives specified tax advantages.

Qualified Business Income (QBI)

Financial Planning Areas: Tax Planning, Business Financial Planning, Income Tax Planning, Corporate Planning.

Definition: The net amount of eligible income, gain, deduction, and loss from a qualified trade or business for purposes of applicable tax rules.

Qualified Charitable Distribution (QCD)

Financial Planning Areas: Tax Planning, Charitable Giving, Retirement Accounts, RMD.

Definition: A qualifying direct transfer from an IRA to an eligible charity by an IRA owner who meets the applicable age and other requirements.

Qualified Dividend

Financial Planning Areas: Tax Planning, Investment Planning, Income Strategies, Portfolio Management.

Definition: A dividend meeting applicable holding-period and issuer requirements for potential taxation at long-term capital-gain rates.

Qualified Domestic Relations Order (QDRO)

Financial Planning Areas: Retirement Accounts, Divorce Planning, Legal Planning, Life Transition Planning.

Definition: A court-approved order assigning an alternate payee rights to some or all benefits under certain employer retirement plans.

Qualified Longevity Annuity Contract (QLAC)

Financial Planning Areas: Retirement Income Planning, Longevity Risk, Retirement Accounts, Income Strategies.

Definition: A qualifying deferred-income annuity purchased within certain retirement accounts and receiving specific RMD treatment.

Qualified Personal Residence Trust (QPRT)

Financial Planning Areas: Estate & Legacy Planning, Tax Planning, Trust, Gift Tax.

Definition:Commonly referred to in tax law as a Qualified Personal Residence Trust, is an irrevocable trust designed to remove a primary residence or vacation home from a grantor’s taxable estate at a significantly reduced gift tax value.

Real Estate Investment Trust (REIT)

Financial Planning Areas: Alternative Investments, Investment Planning, Income Strategies, Portfolio Management.

Definition: A company that owns, finances, or operates qualifying income-producing real estate and elects specialized tax treatment if statutory requirements are met.

Rebalancing

Financial Planning Areas: Investment Planning, Portfolio Management, Asset Allocation, Active Management.

Definition: Adjusting portfolio holdings to restore a desired allocation or risk profile.

Registered Investment Adviser (RIA)

Financial Planning Areas: Investment Advisory Services, Fiduciary, Portfolio Management, Professional Specialties.

Definition: A firm registered with the SEC or a state securities regulator to provide investment advice for compensation.

Remainderman

Financial Planning Areas: Estate & Legacy Planning, Legal Planning, Trust, Property Insurance.

Definition: A remainderman is a person or entity named to inherit real estate or trust assets once someone else’s temporary right to use the property ends.

Required Minimum Distribution (RMD)

Financial Planning Areas: Retirement Accounts, Tax Planning, Retirement Income Plan, Income Strategies.

Definition: The minimum amount generally required to be distributed annually from specified tax-deferred retirement accounts after the applicable starting age or event.

Required Minimum Distribution Aggregation

Financial Planning Areas: Retirement Accounts, RMD, Tax Planning, Retirement Income Planning.

Definition: Rules determining when required distributions from multiple retirement accounts may be calculated or withdrawn together and when they must remain separate.

Required Minimum Distribution Starting Age

Financial Planning Areas: Retirement Accounts, RMD, Tax Planning, Retirement Planning.

Definition: The age at which required distributions generally begin for specified retirement accounts, determined by current law, birth year, account type, and employment status.

Retirement Accounts

Financial Planning Areas: Personal Retirement, 401(k), IRA, Defined Contribution.

Definition: Tax-advantaged accounts and plans designed to accumulate and distribute retirement assets.

Retirement Distribution Strategy

Financial Planning Areas: Retirement Income Planning, Tax Planning, Retirement Accounts, Income Sequencing.

Definition: A plan determining how much to withdraw, from which accounts, and when, while considering taxes, risk, and sustainability.

Retirement Income Plan

Financial Planning Areas: Income Strategies, Comprehensive Retirement Plan, Retirement Readiness, Money Management.

Definition: A plan for turning accumulated resources into sustainable retirement cash flow while managing taxes, inflation, and sequence risk.

Retirement Planning

Financial Planning Areas: Comprehensive Retirement Plan, Retirement Readiness, Income Strategies, Financial Strategy.

Definition: Preparing for life after primary employment by coordinating savings, income, investments, taxes, healthcare, risk, and legacy considerations.

Retirement Planning Design

Financial Planning Areas: Comprehensive Retirement Plan, Individualized Retirement Plans, Financial Strategy, Retirement Income Plan.

Definition: The process of structuring retirement timing, income, withdrawals, investments, taxes, healthcare, and contingencies.

Retirement Readiness

Financial Planning Areas: Retirement Planning, Financial Confidence, Comprehensive Retirement Plan, Personal Planning.

Definition: The degree to which financial resources, income plans, risks, and personal expectations are prepared for retirement.

Retirement Savings

Financial Planning Areas: Retirement Accounts, Money Management, Personal Finance, Personal Retirement.

Definition: Assets accumulated and earmarked to support future retirement spending.

Revocable Trust

Financial Planning Areas: Estate Planning, Living Trust, Legacy Planning, Trust.

Definition: A trust that the grantor generally may amend or revoke during life while legally competent, subject to its terms.

Risk Assessment

Financial Planning Areas: Asset Protection, Financial Blind Spots, Coverage Plans, Portfolio Management.

Definition: Identifying and evaluating financial threats so appropriate avoidance, reduction, transfer, or retention strategies can be considered.

Risk Capacity

Financial Planning Areas: Risk Assessment, Investment Planning, Retirement Planning, Portfolio Management.

Definition: The financial ability to absorb investment losses or variability without jeopardizing essential goals, distinct from emotional willingness to accept risk.

Risk Tolerance

Financial Planning Areas: Investment Advisory Services, Investment Planning, Portfolio Management, Risk Assessment.

Definition: An investor’s willingness and ability to withstand volatility and potential loss, considered alongside goals and time horizon.

Rollover Checkup

Financial Planning Areas: 401(k) Rollover, Retirement Accounts, Investment Planning, Tax Planning.

Definition: A review of a former employer plan and alternatives such as leaving assets, moving them to a new plan, transferring to an IRA, or taking a distribution.

Roth 401(k)

Financial Planning Areas: 401(k), Retirement Accounts, Tax Planning, Employee Benefits.

Definition: A designated Roth account inside an employer plan funded with after-tax deferrals and offering tax-free qualified distributions when requirements are satisfied.

Roth Conversion

Financial Planning Areas: Tax Planning, Income Tax Planning, Retirement Accounts, IRA.

Definition: Moving eligible pretax retirement assets to a Roth account and generally recognizing taxable income in the conversion year.

Roth IRA

Financial Planning Areas: Retirement Accounts, Tax Planning, Individualized Retirement Plans, Wealth Management.

Definition: An individual retirement account funded with after-tax money that may provide tax-free qualified distributions.

Safe Withdrawal Rate

Financial Planning Areas: Retirement Income Planning, Income Strategies, Comprehensive Retirement Plan, Money Management.

Definition: An estimated portfolio-withdrawal percentage intended to support spending over a planning period; it is an assumption, not a guarantee.

Scenario Analysis

Financial Planning Areas: Financial Planning, Retirement Planning, Risk Assessment, Financial Strategy.

Definition: Evaluating how a plan may respond when selected assumptions, decisions, or events change.

SEC-Registered Investment Adviser

Financial Planning Areas: Investment Advisory Services, Fiduciary, Professional Specialties, Portfolio Management.

Definition: An investment adviser registered with the U.S. Securities and Exchange Commission and subject to applicable federal fiduciary and disclosure requirements.

Second Opinion Planning

Financial Planning Areas: Financial Advice, Free Assessment, Financial Blind Spots, Discovery Call.

Definition: An independent review of an existing plan, portfolio, or financial arrangement to identify questions, gaps, risks, or opportunities.

Securities and Exchange Commission (SEC)

Financial Planning Areas: Investment Advisory Services, Registered Investment Adviser, Investor Protection, Professional Specialties.

Definition: The federal agency responsible for administering and enforcing federal securities laws and overseeing key parts of U.S. securities markets.

Self-Employment Tax

Financial Planning Areas: Business Financial Planning, Tax Planning, Personal Finance, Business Owner Financial Planning.

Definition: Federal Social Security and Medicare taxes generally imposed on net earnings from self-employment.

SEP IRA (Simplified Employee Pension)

Financial Planning Areas: Business Retirement Planning, Retirement Accounts, Business Financial Planning, Tax Planning.

Definition: A tax-advantaged employer retirement arrangement commonly used by self-employed people and small businesses.

Separately Managed Account (SMA)

Financial Planning Areas: Investment Advisory Services, Portfolio Management, Tax-Aware Investing, Wealth Management.

Definition: A portfolio of securities owned directly in a client’s account and managed according to an investment mandate rather than pooled with other investors in a fund.

Sequence of Returns Risk

Financial Planning Areas: Retirement Income Planning, Risk Assessment, Investment Planning, Portfolio Management.

Definition: The risk that poor investment returns near the beginning of withdrawals will materially reduce portfolio longevity.

Short-Term Capital Gain

Financial Planning Areas: Capital Gains Tax, Tax Planning, Investment Planning, Wealth Management.

Definition: A gain from selling a capital asset held for the period treated as short term under current tax law, generally taxed as ordinary income federally.

SIMPLE IRA

Financial Planning Areas: Business Retirement Planning, Retirement Accounts, Employee Benefits, Tax Planning.

Definition: A workplace retirement plan for eligible small employers that allows salary deferrals and requires employer contributions under plan rules.

Single Premium Immediate Annuity (SPIA)

Financial Planning Areas: Annuity, Retirement Income Planning, Guaranteed Income, Longevity Risk.

Definition: An annuity purchased with a single premium that generally begins a stream of payments within a short period after purchase.

SIPC

Financial Planning Areas: Investment Advisory Services, Broker-Dealer, Securities, Investor Protection.

Definition: The Securities Investor Protection Corporation, which may protect customers if a member brokerage fails and assets are missing; it does not protect against market loss.

Social Security

Financial Planning Areas: Retirement Income Plan, Income Strategies, Retirement Readiness, Personal Finance.

Definition: A federal social-insurance program providing eligible retirement, disability, and survivor benefits based on covered earnings and applicable rules.

Social Security Claiming Strategy

Financial Planning Areas: Retirement Income Plan, Income Strategies, Tax Planning, Retirement Readiness.

Definition: Evaluating when and how to claim benefits based on age, earnings, marital status, longevity, taxes, and other income.

Special Needs Trust

Financial Planning Areas: Estate Planning, Special Needs Planning, Trust, Beneficiary Coordination.

Definition: A trust designed to provide supplemental support for a person with a disability while addressing the rules of needs-based public benefits.

Split-Dollar Life Insurance

Financial Planning Areas: Business Financial Planning, Executive Benefits, Life Insurance Planning, Tax Planning.

Definition: An arrangement in which two parties share specified rights, premiums, or benefits of a life insurance policy under a written agreement.

Spousal Benefit

Financial Planning Areas: Social Security, Retirement Income Planning, Family Financial Planning, Income Strategies.

Definition: A benefit potentially available to a spouse based on the other spouse’s earnings or plan participation, subject to applicable rules.

Standard Deviation

Financial Planning Areas: Investment Planning, Portfolio Management, Risk Assessment, Performance Measurement.

Definition: A statistical measure of how widely an investment’s historical returns have varied around their average.

Step-Up in Basis

Financial Planning Areas: Tax Planning, Estate Planning, Legacy Planning, Capital Gains Tax.

Definition: A basis adjustment that may apply to eligible inherited property, generally using fair market value at the owner’s death or another permitted valuation date.

Stock

Financial Planning Areas: Investment Planning, Equity, Asset Allocation, Portfolio Management.

Definition: A security representing an ownership interest in a corporation and a claim on its residual value and earnings.

Stress Test

Financial Planning Areas: Financial Planning, Retirement Planning, Risk Assessment, Scenario Analysis.

Definition: An analysis examining how a financial plan may perform under adverse conditions such as market declines, inflation, longevity, income loss, or major expenses.

Supplemental Insurance

Financial Planning Areas: Healthcare Insurance, Coverage Plans, Risk Assessment, Healthcare Benefits.

Definition: Coverage designed to complement primary insurance by paying specified costs, services, or cash benefits under its terms.

Surrender Charge

Financial Planning Areas: Annuity, Cash Value Insurance, Insurance Planning, Liquidity.

Definition: A contractual charge that may apply when money is withdrawn or a policy or annuity is terminated during a specified period.

Survivor Benefit

Financial Planning Areas: Retirement Income Planning, Pension Planning, Social Security, Estate & Legacy Planning.

Definition: Continuing income or protection available to an eligible spouse, beneficiary, or dependent following death.

Systematic Risk

Financial Planning Areas: Investment Planning, Portfolio Management, Risk Assessment, Asset Allocation.

Definition: Marketwide risk that generally cannot be eliminated through diversification alone.

Tax Bracket

Financial Planning Areas: Tax Planning, Income Tax Planning, Money Management, Financial Strategy.

Definition: An income range to which a specified marginal tax rate applies under a progressive tax system.

Tax Credit

Financial Planning Areas: Tax Planning, Income Tax Planning, Personal Finance, Business Financial Planning.

Definition: An amount that may directly reduce tax liability when eligibility and documentation requirements are satisfied.

Tax Deduction

Financial Planning Areas: Tax Planning, Income Tax Planning, Personal Finance, Business Financial Planning.

Definition: An eligible amount that reduces income subject to tax rather than directly reducing the tax itself.

Tax Diversification

Financial Planning Areas: Tax Planning, Retirement Accounts, Retirement Income Planning, Wealth Management.

Definition: Holding assets across accounts with different tax treatments to create flexibility when coordinating future income and withdrawals.

Tax Drag

Financial Planning Areas: Tax Planning, Tax-Aware Investing, Portfolio Management, Wealth Management.

Definition: The reduction in net investment return caused by taxes on interest, dividends, gains, or transactions.

Tax Planning

Financial Planning Areas: Income Tax Planning, Tax-Efficient Investing, Financial Strategy, Holistic Financial Planning.

Definition: Proactively coordinating financial decisions to manage current and future tax consequences legally.

Tax Preparation

Financial Planning Areas: Income Tax Planning, Professional Specialties, Tax Returns, Financial Organization.

Definition: Preparing and filing required tax forms and supporting information with appropriate tax authorities.

Tax Returns

Financial Planning Areas: Tax Preparation, Tax Planning, Financial Organization, Income Tax Planning.

Definition: Official forms filed with tax authorities to report income, deductions, credits, payments, and tax obligations.

Tax Withholding

Financial Planning Areas: Tax Planning, Retirement Income Planning, Payroll Planning, Personal Finance.

Definition: Tax amounts withheld from wages, benefits, or distributions and remitted to a tax authority as payments toward an anticipated liability.

Tax-Aware Investing

Financial Planning Areas: Tax Planning, Investment Planning, Portfolio Management, Wealth Management.

Definition: Coordinating investment selection, account location, trading, gain realization, and withdrawals with potential tax consequences.

Tax-Deferred Account

Financial Planning Areas: Retirement Accounts, Tax Planning, 401(k), IRA.

Definition: An account in which taxation on eligible contributions or growth is postponed until distribution or another taxable event.

Tax-Efficient Investing

Financial Planning Areas: Tax Planning, Investment Advisory Services, Portfolio Management, Wealth Management.

Definition: Structuring investments and accounts to manage the effect of taxes on long-term after-tax outcomes.

Tax-Free Account

Financial Planning Areas: Retirement Accounts, Roth IRA, Health Savings Account, Tax Planning.

Definition: An account in which qualified earnings or distributions may be excluded from federal income tax when requirements are satisfied.

Tax-Loss Harvesting

Financial Planning Areas: Tax Planning, Investment Planning, Portfolio Management, Active Management.

Definition: Selling an investment at a loss to offset eligible realized gains or income, subject to tax rules including wash-sale restrictions.

Taxable Account

Financial Planning Areas: Investment Planning, Tax Planning, Portfolio Management, Wealth Management.

Definition: An account without general retirement-plan tax deferral, so interest, dividends, and realized gains may create current taxes.

Team of Specialists

Financial Planning Areas: Professional Specialties, Family CFO, Holistic Financial Planning, Wealth Coordination.

Definition: A coordinated group of professionals with complementary expertise working toward a client’s broader plan.

Tenants in Common

Financial Planning Areas: Estate Planning, Asset Titling, Business Financial Planning, Probate.

Definition: A form of co-ownership in which each owner holds a separate share that may transfer under that owner’s estate plan rather than automatically to other owners.

Term Insurance

Financial Planning Areas: Life Insurance Planning, Risk Assessment, Coverage Plans, Insurance Planning.

Definition: Life insurance providing coverage for a specified term and paying a death benefit if the insured dies while coverage is in force.

Time Horizon

Financial Planning Areas: Investment Planning, Asset Allocation, Risk Assessment, Retirement Planning.

Definition: The period before invested money is expected to be needed for a financial objective.

Total Return

Financial Planning Areas: Investment Planning, Portfolio Management, Wealth Management, Income Strategies.

Definition: The combined investment results from income and changes in value over a specified period.

Transfer-on-Death (TOD) Registration

Financial Planning Areas: Estate Planning, Beneficiary Coordination, Investment Accounts, Probate.

Definition: A registration directing eligible securities or accounts to named beneficiaries at the owner’s death, generally outside probate.

Trust

Financial Planning Areas: Estate & Legacy Planning, Living Trust, Revocable Trust, Irrevocable Trust.

Definition: A legal arrangement in which a trustee holds and administers property for beneficiaries under written terms.

Trustee

Financial Planning Areas: Trust, Estate Planning, Asset Protection, Legacy Planning.

Definition: The person or institution legally responsible for administering trust property according to the trust terms and applicable fiduciary duties.

Trustor

Financial Planning Areas: Estate & Legacy Planning, Legal Planning, Trust, Asset Protection.

Definition: A trustor is an individual or entity that creates a trust and transfers assets into it to be managed by a trustee for chosen beneficiaries.

Umbrella Liability

Financial Planning Areas: Risk Assessment, Asset Protection, Coverage Plans, Personal Financial Strategy.

Definition: Additional liability insurance designed to provide coverage above specified underlying policy limits, subject to terms and exclusions.

Underwriting

Financial Planning Areas: Insurance Planning, Life Insurance Planning, Disability Insurance, Long-Term Care Insurance.

Definition: The insurer’s process for evaluating an applicant’s risk and determining eligibility, coverage terms, classifications, exclusions, and premiums.

Universal Life Insurance

Financial Planning Areas: Life Insurance Planning, Permanent Insurance, Cash Value Insurance, Insurance Planning.

Definition: Flexible-premium permanent life insurance with policy values and charges governed by the contract and affected by credited interest and funding levels.

Unrealized Gain or Loss

Financial Planning Areas: Investment Planning, Portfolio Management, Tax Planning, Performance Measurement.

Definition: The increase or decrease in an asset’s value while it remains unsold and therefore generally has not yet created a realized capital gain or loss.

Variable Annuity

Financial Planning Areas: Annuity, Retirement Income Planning, Investment Planning, Insurance Planning.

Definition: An insurance contract whose account value and payments may vary with selected investment options, subject to fees, contract terms, and market risk.

Variable Universal Life Insurance

Financial Planning Areas: Life Insurance Planning, Permanent Insurance, Investment Planning, Insurance Planning.

Definition: Permanent life insurance combining flexible premiums with investment subaccounts whose performance affects policy value and may affect coverage sustainability.

Vesting

Financial Planning Areas: Employee Benefits, Business Retirement Planning, Equity Compensation, Deferred Compensation.

Definition: The process by which an employee earns nonforfeitable rights to employer-provided retirement contributions, equity, or other benefits under plan rules.

Volatility

Financial Planning Areas: Risk Assessment, Investment Planning, Active Management, Portfolio Management.

Definition: The degree and frequency of price movement in a security, portfolio, or market.

Waiver of Premium Rider

Financial Planning Areas: Life Insurance Planning, Disability Insurance, Insurance Planning, Risk Assessment.

Definition: A rider that may waive required premiums after a qualifying disability or other covered event, subject to the policy’s definition and waiting period.

Wash-Sale Rule

Financial Planning Areas: Tax Planning, Tax-Loss Harvesting, Investment Planning, Portfolio Management.

Definition: A tax rule that may disallow a current loss when substantially identical securities are acquired within the specified period before or after a loss sale.

Wealth Coordination

Financial Planning Areas: Family CFO, Wealth Management, Holistic Financial Planning, Financial Organization.

Definition: Integrating investments, estate matters, legal entities, taxes, insurance, cash flow, and professional advice into a coordinated framework.

Wealth Management

Financial Planning Areas: Individual Wealth Management, Portfolio Management, Investment Advisory Services, Wealth Management Planning.

Definition: An advisory approach combining investment management with broader tax-aware, retirement, estate, risk, and family planning.

Wealth Management Planning

Financial Planning Areas: Wealth Management, Investment Planning, Financial Strategy, Personal Financial Strategy.

Definition: Designing long-term strategies for building, protecting, using, and transferring financial resources.

Whole Life Insurance

Financial Planning Areas: Life Insurance Planning, Permanent Insurance, Cash Value Insurance, Estate & Legacy Planning.

Definition: Permanent life insurance with contractual premiums, death benefits, and cash-value provisions, subject to policy terms and insurer claims-paying ability.

Will

Financial Planning Areas: Estate & Legacy Planning, Legacy Planning, Legal Planning, Beneficiary.

Definition: A legal document directing the disposition of probate assets and naming fiduciaries or guardians, subject to applicable state law.

Withdrawal Strategy

Financial Planning Areas: Retirement Income Planning, Tax Planning, Retirement Accounts, Income Sequencing.

Definition: A coordinated approach for deciding how much to withdraw, which accounts to use, and how distributions may affect taxes and future income.

No Glossary Terms

Yield to Maturity

Financial Planning Areas: Fixed Income, Bond, Investment Planning, Income Strategies.

Definition: The estimated annualized return from holding a bond to maturity if scheduled payments are made and reinvestment assumptions are met.

Zero-Coupon Bond

Financial Planning Areas: Fixed Income, Investment Planning, Tax Planning, Bond Ladder.

Definition: A bond issued at a discount that generally pays no periodic interest and instead pays face value at maturity, while taxable imputed interest may accrue annually.