Financial Education
Financial Planning Glossary
Clear, practical definitions of financial planning terms. Written for Arizona retirees and pre-retirees — no jargon, just straightforward explanations.
401(k)
A 401(k) is an employer-sponsored retirement savings plan that allows employees to contribute a portion of their pre-tax salary (or after-tax salary f...
Read Full DefinitionAnnuity
An annuity is a financial product issued by an insurance company that provides a stream of payments over a specified period or for life, in exchange f...
Read Full DefinitionAsset Allocation
Asset allocation is the strategy of dividing your investment portfolio among different asset categories — such as stocks, bonds, cash equivalents, and...
Read Full DefinitionBeneficiary Designation
A beneficiary designation is a legal instruction on a financial account — such as a 401(k), IRA, life insurance policy, or annuity — that specifies wh...
Read Full DefinitionCapital Gains Tax
Capital gains tax is the tax levied on the profit from selling an asset — such as stocks, bonds, real estate, or mutual funds — for more than you paid...
Read Full DefinitionFee-Only Financial Advisor
A fee-only financial advisor is compensated exclusively through fees paid directly by clients — never through commissions, referral fees, or revenue s...
Read Full DefinitionFiduciary
A fiduciary is a person or organization legally obligated to act in another party's best interest. In financial planning, a fiduciary advisor must put...
Read Full DefinitionMedicare IRMAA
IRMAA (Income-Related Monthly Adjustment Amount) is an additional surcharge added to your Medicare Part B and Part D premiums if your modified adjuste...
Read Full DefinitionQualified Charitable Distribution (QCD)
A Qualified Charitable Distribution (QCD) is a direct transfer of funds from your traditional IRA to a qualified charity. QCDs are available to IRA ow...
Read Full DefinitionRequired Minimum Distribution (RMD)
A Required Minimum Distribution (RMD) is the minimum amount you must withdraw annually from tax-deferred retirement accounts — including traditional I...
Read Full DefinitionRoth Conversion
A Roth conversion is the process of moving funds from a traditional IRA, 401(k), or other pre-tax retirement account into a Roth IRA. You pay income t...
Read Full DefinitionRoth IRA
A Roth IRA is an individual retirement account funded with after-tax dollars. Contributions are not tax-deductible, but qualified withdrawals — includ...
Read Full DefinitionSequence of Returns Risk
Sequence of returns risk is the danger that the order in which investment returns occur will negatively impact your portfolio's longevity — particular...
Read Full DefinitionTax-Loss Harvesting
Tax-loss harvesting is the strategy of selling investments that have declined in value to realize a capital loss, which can be used to offset capital ...
Read Full DefinitionTraditional IRA
A traditional IRA is an individual retirement account where contributions may be tax-deductible in the year they're made. Investments grow tax-deferre...
Read Full DefinitionHave Questions About Financial Planning?
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