Welcome to our research center! We’ve put together a library of information on important financial topics that we believe you’ll find helpful.
Simply click on one of the general financial topics below and you’ll find a selection of easy-to-understand information sheets about related financial concepts and strategies.
Estates & Trusts
What Key Estate Planning Tools Should I Know About?
By taking steps in advance, you have a greater say in how these questions are answered. And isn’t that how it should be? Wills and
How Can a Living Trust Help Me Control My Estate?
Living trusts enable you to control the distribution of your estate, and certain trusts may enable you to reduce or avoid many of the taxes
What Are the Pitfalls of Probate?
Have you ever wondered what will happen to your estate after you die? How long will it take for your loved ones to receive the
How Can My Gift Benefit Me and the Charity?
Giving basics You’re free to give almost any type of property to whatever organization you choose. But in order to retain the tax benefits associated
How Can I Control the Distribution of My Estate?
There are a number of ways your estate can be distributed to your heirs after your death. Each allows a different degree of control over
How Will I Pay Estate Taxes?
Estate taxes. It’s not enough to simply know they exist and to know strategies to minimize them. When it comes down to it, you need
Can I Benefit from an A-B Trust?
Married couples have several ways to potentially avoid any estate tax liability when they leave assets to each other. Because of the unlimited marital deduction,
What Are the Pitfalls of Probate?
Have you ever wondered what will happen to your estate after you die? How long will it take for your loved ones to receive the
What Gifting Strategies Are Available to Me?
There are a number of different gifting strategies available for planned giving. Each has its advantages and disadvantages. Instead of making an outright gift, you
How Can I Benefit from a Charitable Lead Trust?
Charitable lead trusts are designed for people who would like to benefit a charity now rather than later. You may have heard about some charitable
How Can I Benefit from a Charitable Remainder Trust?
Sometimes it takes tough economic times and natural disasters to unite and bring out the best in people. Natural disasters such as hurricanes and earthquakes
How Can I Benefit from a Wealth Replacement Trust?
Charitable giving can be a rewarding experience by allowing you to both give and receive. To enjoy the benefits of charitable giving, you can utilize
Could My Family Benefit from a Family Limited Partnership?
Effective estate planning should address wealth transfer from a practical and cost-effective approach. One estate planning strategy that families with closely held businesses should consider
What Is the Best Form of Property Ownership for Me?
In planning your estate, it is customary to consider wills and trusts (as well as intestacy) as a means of property distribution. As a matter
What Is the History of the Federal Estate Tax?
The history of estate taxes in America has been a long and winding road. Careful estate planning is still one of the most important ways
What Key Estate Planning Tools Should I Know About?
By taking steps in advance, you have a greater say in how these questions are answered. And isn’t that how it should be? Wills and trusts are
Retirement
What Is a SEP IRA?
A simplified employee pension plan (SEP) is a deferred-compensation arrangement that is similar to a profit-sharing plan. It can be set up by employers and
What Is a SIMPLE?
There are many types of employer-sponsored retirement plans. One that may appeal to small businesses and to self-employed individuals is the savings incentive match plan
What Is an IRA Rollover?
If you leave a job or retire, you might want to transfer the money you’ve invested in one or more employer-sponsored retirement plans to an
What Is a Roth 401(k)?
The arena of employer-sponsored retirement plans has been dominated by 401(k) plans that are funded with pre-tax contributions, which effectively defers taxes until distributions begin.
What Is a Profit-Sharing Plan?
David Wray, the president of the Plan Sponsor Council of America, once said that the purpose of profit-sharing plans is “to generate goodwill and a
What Is a Money Purchase Pension Plan?
A money purchase plan is a type of defined-contribution plan that is similar to a profit-sharing plan, except that the contribution amounts are fixed rather
What Is a 403(b) Plan?
A 403(b) plan is a special tax-deferred retirement savings plan that is often referred to as a tax-sheltered annuity, a tax-deferred annuity, or a 403(b)
Why Do People Buy Annuities?
Annuities are insurance-based financial vehicles that can provide many benefits sought by retirement-minded investors. There are a number of reasons why people buy annuities. Deferral
What Is a Split-Annuity Strategy?
A split-annuity strategy involves purchasing two types of annuity contracts: immediate and deferred. The immediate annuity would provide a current income stream during the early
What Are Annuity Living Benefits?
Many variable annuity contracts offer “living benefit” guarantees. For an additional cost, the contract holder may be able to purchase guarantees regardless of the account
How Much Do I Need to Save?
Many Americans realize the importance of saving for retirement, but knowing exactly how much they need to save is another issue altogether. With all the
What Does the Changing Pension Landscape Mean for Retirement?
John F. Kennedy once said, “Change is the law of life. And those who look only to the past or present are certain to miss
What Is a 1035 Exchange?
Named after Section 1035 of the Internal Revenue Code, a 1035 exchange allows life insurance policy owners (and annuity contract owners) to exchange an old
Unforgettable Birthdays
Birthdays may seem less important as you grow older. They may not offer the impact of watershed moments such as getting a driver’s license at
Should You Bank Your Retirement on Your Business?
Investing in your own business makes sense. Many businesses achieve significant growth each year. However, when you consider that many small businesses fold every year,
What Are My Retirement Planning Options?
There are a variety of retirement planning options that can meet your needs. Your employer funds some; you fund some. Bear in mind that, in
Will Social Security Retire Before You Do?
People have traditionally seen Social Security benefits as the foundation of their retirement planning programs. The Social Security contributions deducted from workers’ paychecks have, in
How Can I Estimate My Future Social Security Benefits?
Estimating your future Social Security benefits used to be a difficult task, but not any longer. For an estimate of your projected benefits, go to
What Is a Self-Employed Retirement Plan?
A self-employed retirement plan is a tax-deferred retirement savings program for self-employed individuals. In the past, the term “Keogh plan” or “H.R. 10 plan” was
What Is an Indexed Annuity?
If you want to limit potential losses while participating in the potentially attractive returns of a market-driven investment but would also like a guaranteed return,
What Are My Retirement Plan Distribution Options?
When it comes to receiving the fruits of your labor — the money accumulated in your employer-sponsored retirement plan — you are faced with a
What Is a Traditional IRA?
Traditional individual retirement accounts (IRAs) can be a good way to save for retirement. If you do not participate in an employer-sponsored retirement plan or
What Is a 401(k) Plan?
A 401(k) plan is a self-directed, qualified retirement plan established by an employer to provide future retirement benefits for employees. Employee contributions are made on
How Should I Manage My Retirement Plan?
Employer-sponsored retirement plans are more valuable than ever. The money in them accumulates tax deferred until it is withdrawn, typically in retirement. Distributions from a
Save Now or Save Later?
Most people have good intentions about saving for retirement. But few know when they should start and how much they should save. Sometimes it might
What Is a Roth IRA?
Roth IRAs are tax-favored financial vehicles that enable investors to save money for retirement. They differ from traditional IRAs in that taxpayers cannot deduct contributions
Tax Planning
What Is the Capital Gain Tax?
Capital gains are the profits realized from the sale of capital assets such as stocks, bonds, and property. The capital gain tax is triggered only
What Is the Estate Tax?
The estate tax is a tax on property that transfers to others upon your death. Estate taxes are assessed on the total value of your
What Is the Gift Tax?
The federal gift tax applies to gifts of property or money while the donor is living. The federal estate tax, on the other hand, applies
How Much Money Can I Put Into My IRA or Employer-Sponsored Retirement Plan?
IRAs and employer-sponsored retirement plans are subject to annual contribution limits set by the federal government. The limits are adjusted periodically to compensate for inflation
What Is a Required Minimum Distribution?
A required minimum distribution (RMD) is the annual amount that generally must be withdrawn from a traditional IRA or a qualified retirement plan (such as
What Are the Tax Benefits of Charitable Trusts?
Americans give freely to support the causes they value, from churches, education, and the arts to medical research. Fortunately, current tax laws encourage and even
When Must Taxes Be Paid on IRA and Employer-Sponsored Retirement Funds?
Traditional IRAs and most employer-sponsored retirement plans are tax-deferred accounts, which means they are typically funded with pre-tax or tax-deductible dollars. As a result, taxes
What Happens If I Withdraw Money from My Tax-Deferred Investments Before Age 59½?
Withdrawing taxable funds from a tax-deferred retirement account before age 59½ generally triggers a 10% federal tax penalty, on top of any federal income taxes
What Is Tax Deferral?
“Tax deferral” is a method of postponing the payment of income tax on currently earned investment income until the investor withdraws funds from the account.
How Can I Benefit from Tax-Advantaged Investments?
For many people, tax-advantaged investing is an excellent way to reduce their income tax liability. And while many of the traditional tax-advantaged strategies have been
What Tax Deductions Are Still Available to Me?
Tax reform measures are enacted frequently by Congress, which makes it hard for U.S. taxpayers to know which deductions are currently available to help lower
What Tax-Advantaged Alternatives Are Available?
A strong savings program is essential for any sound financial strategy. We take Benjamin Franklin’s saying to heart, “A penny saved is a penny earned,”
What Is the Most Tax-Efficient Way to Take a Distribution From a Retirement Plan?
If you receive a distribution from a qualified retirement plan such as a 401(k), you need to consider whether to pay taxes now or to
Is There Such a Thing as a Tax-Free Investment?
The simple answer to this question is “yes.” There are two main types: (1) municipal bonds and municipal bond mutual funds and (2) tax-free money
How Can I Keep More of My Mutual Fund Profits?
Provisions in the tax code allow you to pay lower capital gains taxes on the sale of assets held more than one year. Short-term gains
How Can I Upgrade My Insurance — Tax-Free?
Responding to the changing needs of consumers, the life insurance industry has developed some alternatives that go much further in satisfying a variety of financial
Investing
How Are Annuities Taxed?
One of the most attractive features of an annuity is its tax-deferred status. Generally, you won’t pay any income tax on the interest or earnings
What Is a Bond Ladder?
A bond ladder is a strategy involving the purchase of bonds that have staggering maturity dates. Instead of maturing all at once, the bonds mature
How Are Common and Preferred Stocks Different?
Common stock and preferred stock are the two main types of stocks that are sold by companies and traded among investors on the open market.
What Are Dividends?
When considering the profit they make on stocks, many investors assess the gains they have obtained based on the appreciation of the stock on the
What Is an Exchange-Traded Fund?
Exchange-traded funds (ETFs) are just one of the many types of investment funds available, but they have some qualities that are unique and set them
How Are Growth and Value Stocks Different?
Investors are often confused about the differences between growth stocks and value stocks. The main way in which they differ is not in how they
How Are Mutual Funds Taxed?
Many people have heard the Benjamin Franklin quote, “In this world nothing is certain but death and taxes.” Mutual fund taxes can be onerous. However,
What Is Stock?
Most people know something about the stock market, but many investors who see stock as a way to get rich quick might not understand exactly
What Are Zero-Coupon Bonds?
Zero-coupon bonds (“zeros”) represent a type of bond that does not pay interest during the life of the bond. Instead, investors buy these bonds at
What Is Diversification?
Virtually every investment has some type of risk associated with it. The stock market rises and falls. An increase in interest rates can cause a
What Types of Bonds Are Available?
Bonds are issued by federal, state, and local governments; agencies of the U.S. government; and corporations. There are three basic types of bonds: U.S. Treasury,
What Is a Bond?
When you invest in bonds, you are investing in the debt of a government entity or a corporation. A bond is simply evidence of a
What Do Bond Ratings Mean?
Bond ratings gauge a bond issuer’s financial ability to repay its promised principal and interest payments. Ratings are based on an analysis of the issuer’s
What Is a Stock Index?
In 1884, Charles Henry Dow averaged the closing prices of 11 stocks he considered representative of the strength of the U.S. economy in a paper
How Do Mutual Funds and Stocks Differ?
Whether you’re a first-time stock investor or a seasoned veteran, you should understand what differentiates single stock investments from mutual fund investing. Picture a collection
What Is a Mutual Fund?
Since the creation of the first modern-day mutual fund, the Massachusetts Investors Trust, in 1924, there has been a steady growth of mutual funds. Today
What Is a Closed-End Fund?
Closed-end funds have been around since 1893, more than 30 years before the first mutual fund (also known as an open-end fund) was created in
What Is a Mutual Fund Load?
Mutual fund transactions can be complicated, especially with the fees and expenses that accompany the process. It’s important to understand mutual fund loads, or sales
What Is an Annuity?
An annuity is a contract with an insurance company that is funded by the purchaser and designed to generate an income stream in retirement. It
What Is the Difference Between a Fixed Annuity and a Variable Annuity?
An annuity is a contract with an insurance company in which you make one or more payments in exchange for a future income stream in
What Investment Risks Should I Know About?
Taken by itself, the word “risk” sounds negative. But broken down into what it really stands for in terms of investing, it begins to be
What Are the Different Classes of Assets?
When it comes to investing their money, many people are content to take a random approach. They may have received a hot tip for a
What Is Asset Allocation?
Lewis Carroll, the author of Alice’s Adventures in Wonderland, once said, “If you don’t know where you’re going, any road will get you there.” This
How Can I Save for My Child’s College Education?
Once you’ve determined how much it could cost to send your children to college, your next prudent step is to develop a systematic investment plan
What College Investment Options Do I Have?
As tax laws change, college investment planning becomes increasingly complex. The most beneficial strategies for creating a college fund are quite similar to other investment
What Stock and Bond Investing Alternatives Do I Have?
Many prudent investors may have at least some of their holdings in stocks, corporate bonds, or both. In fact, when most people think of “investing,”
What Is Dollar-Cost Averaging?
Every investor dreams of buying into the market at a low point, just before it hits an upswing, and garnering a large profit from selling
529 Lesson Plan: High Scores for 529 Plans
Looking for a tax-advantaged college savings plan that has no age restrictions and no income phaseout limits — and one you can use to pay
Cash Management
What Are Some Tips for Managing My Money?
As with virtually all financial matters, the easiest way to be successful with a cash management program is to develop a systematic and disciplined approach.
How Long Will It Take to Double My Money?
Before making any investment decision, one of the key elements you face is working out the real rate of return on your investment. Compound interest
What Cash Management Tools Are Available?
There are a number of short-term cash management instruments available to the individual establishing a sound cash management program. These alternatives include money market mutual
How Do Money Market Mutual Funds Work?
Just like individuals, the government, corporations, and banks often need to borrow money for a short time to make ends meet. Unlike most individuals, however,
How Can I Better Manage My Short-Term Cash?
The most important attribute of a cash reserve is its availability in time of sudden need. And even though a federally insured savings account is
What Advantages Does a Biweekly Mortgage Offer?
Most homeowners make their regular mortgage payments every month for the duration of the loan term, and never think of doing otherwise. But prepaying your
What Is a Reverse Mortgage?
Many Americans facing retirement would love to increase their monthly income. Fortunately, there is a way that homeowners can use their homes to help finance
What Are Some Smart Ways to Refinance?
It may be worthwhile to refinance if you can get financing that is at least one to two points lower than your current interest rate.
What About Financial Aid for College?
Financial aid for college consists of loans, grants, scholarships, and work study. Grants and scholarships are worth searching for because they don’t have to be
What Savings Alternatives Are Available?
As an investor, you know it’s important to have a portion of your holdings in savings. Opinions differ, but most financial professionals agree that adequate
How Does Inflation Affect Me?
Are you saving for retirement? For your children’s education? For any other long-term goal? If so, you’ll want to know how inflation can impact your
Is a Home Equity Loan or Line of Credit Right for Me?
Home equity financing uses the equity in your home to secure a loan. For this reason, lenders typically offer better interest rates for this type
Risk Management
Why Purchase Life Insurance?
We’ve all heard about the importance of having life insurance, but is it really necessary? Usually, the answer is “yes,” but it depends on your
Why Are Annuities Considered an Insurance Product?
Annuities are financial vehicles that can be sold only by insurance companies. Basically, an annuity is a contract between you and an insurance company, which
What Is Property and Casualty Insurance?
Property and casualty insurance is specifically designed to help protect your possessions from theft or destruction and your assets from being depleted through disaster or
Do I Need a Business Owner Policy?
Your business may be running smoothly. You could be making money hand over fist. But don’t be lulled into thinking that a catastrophe could never
What Is Life Insurance for Business Owners?
If you own your own business, chances are you’ve at least thought about the conditions under which you will leave the business and who is
What Is Split-Dollar Life Insurance?
Life insurance can be an important part of a business owner’s financial strategy. It can also be a great benefit to offer to key employees.
What Is Last-Survivor Life Insurance?
Last-survivor or second-to-die life insurance covers two lives under one policy. The death benefit is paid after the second person covered under the policy dies.
What Is Disability Income Insurance for Business Owners?
One of your greatest assets is the ability to earn an income. If you were to lose that ability due to a disabling accident or
What Is Term Life Insurance?
Term life insurance is “pure” insurance. It offers protection only for a specific period of time. If you die within the time period defined in
What Is Whole Life Insurance?
Most people are familiar with whole life insurance. For many years, whole life policies were the predominant type of life insurance sold in America. When
What Is Universal Life Insurance?
Universal life insurance was developed in the late 1970s to overcome some of the disadvantages associated with term and whole life insurance. As with other
What Is Variable Life Insurance?
The insurance industry has introduced different types of insurance to meet consumer needs. For example, universal life insurance was created to provide a solution for
What Are the Main Types of Auto Insurance?
There are four main types of auto insurance are available: liability, uninsured or underinsured motorist, collision and comprehensive, and personal injury. Most states require drivers
How Do I Make a Property Insurance Claim?
When it is time to make an insurance claim, the more prepared you are, the more smoothly it will go. Be familiar not only with
How Can I Maximize My Insurance Benefits?
Understanding the threat of estate taxes on your life insurance proceeds is the first step in protecting these funds from unnecessary taxation. The next steps
How Can I Insure My Future?
Long ago, people realized that there is strength in numbers. For hundreds of years, we have been joining forces against all kinds of calamities —
How Can I Protect My Home?
Since your home is one of your greatest assets, you should make sure it is adequately protected. That’s where homeowners insurance enters the picture. Homeowners
Do I Need Disability Income Insurance?
Although most of us are aware of the need for health insurance coverage when determining our risk management needs, many of us fail to consider
What Types of Health Coverage Are Available?
Rising health-care costs have driven the demand for, and the price of, medical insurance sky-high. The availability of group coverage through employment has helped many
How Can I Extend My Liability Coverage?
In this litigious society, no one is immune from potential lawsuits. Anyone with significant assets might need protection from the devastating effects of a liability
What Is the Difference Between an HMO and a PPO?
Selecting health insurance is often one of the most important decisions you will make. Health maintenance organizations (HMOs) and preferred provider organizations (PPOs) are types
How Can I Determine the Financial Strength of My Insurance Company?
How do you compare life insurance companies? What features do you examine? What criteria do you use? How do you know what to look for?
Am I Prepared for Long-Term Care Expenses?
In general, Americans are not sufficiently prepared to pay for long-term care. Many of them go through their lives simply hoping that they won’t ever
What Does Medicare Cover?
Medicare is the federal health insurance program for persons age 65 and older as well as certain disabled individuals. In 1965, Medicare was enacted to
What Are the Basic Types of Life Insurance?
One of the best ways to protect against the financial consequences of a primary wage earner’s premature death is life insurance. However, choosing from the
