Glossary
$0 Startup
Starting a business with minimal or no initial financial investment.
$1,000 Challenge
A personal finance initiative aimed at saving the first $1,000 for financial emergencies.
1% Rule
A guideline suggesting that a property should rent for at least 1% of its purchase price each month to be a viable investment.
10% Penalty
An additional tax applied to early withdrawals from retirement accounts if certain conditions aren't met.
1031 Exchange
A tax provision that allows investors to defer paying capital gains taxes on a property sale by reinvesting the proceeds into a new property.
1099 Contractor
A self-employed individual hired to perform work; not a permanent employee.
20% Time
A model that gives students 20% of their time to work on personal projects of their choice.
4% rule
A rule of thumb for retirement withdrawals, suggesting that retirees can withdraw 4% of their retirement savings annually without running out of money.
40-70 Rule
A guideline suggesting that financial discussions with parents should occur when an adult turns 40 or when a parent turns 70.
401k
A retirement savings plan sponsored by an employer that allows employees to save a portion of their paycheck before taxes are taken out.
401k Match
Employer contributions to your retirement account, often matching a percentage of your savings.
403(b) and 457 Plans
Tax-advantaged retirement plans primarily for teachers and public service employees, allowing for pre-tax contributions.
403B Plan
A retirement plan for certain employees of public schools and tax-exempt organizations, similar to a 401K but often with higher fees.
457 Plan
A non-qualified, tax-advantaged deferred compensation plan established by state and local governments in the United States.
457(b)
A deferred compensation plan available for governmental and certain non-profit organizations, allowing employees to save for retirement.
529 ABLE plan
A tax-advantaged savings plan designed to help individuals with disabilities save for certain expenses without jeopardizing their benefits.
529 Plan
A tax-advantaged savings plan designed to encourage saving for future education expenses.
72-hour rule
A principle suggesting a waiting period of 72 hours before making impulse purchases to minimize regret.
72(t)
A provision that allows for penalty-free withdrawals from retirement accounts for qualifying individuals under age 59.5.
72(t) Distribution
A series of substantially equal periodic payments that allow penalty-free withdrawals from retirement accounts under certain conditions.
72T Distribution
A method to withdraw funds from an IRA without incurring the 10% early withdrawal penalty.
AB Testing
A method used to compare two versions of a webpage or product to determine which one performs better.
Abundance Mindset
The belief that opportunities and resources are plentiful.
ACA
Affordable Care Act, a healthcare reform law aimed at making health insurance more affordable and accessible.