Investment Word

questions@atlanticfinancial.com — Mon, 9 Apr 2007 09:10:07 -0400

A Share is a unit of account for various financial instruments including stocks, mutual funds, limited partnerships, and REIT's. A share is one of a specified number of equal portions in the capital of a company. Sometimes a share can entitle its owner to a portion of distributed profits known as a dividends and to a portion of the value of the company in case of liquidation. Shares can be voting or non-voting, meaning they either do or do not carry the right to vote on the board of directors and corporate policy. Whether this right exists often affects the value of the share.

Economic Growth

questions@atlanticfinancial.com — Thu, 5 Apr 2007 10:38:20 -0400

Economic growth is an increase in the capacity of an economy to produce goods and services, compared from one period of time to another. Economic growth can be measured in nominal terms, which include inflation, or in real terms (which are adjusted for inflation). Do you have financial planning questions? Ask Atlantic Financial Today!

401k Plan

questions@atlanticfinancial.com — Wed, 4 Apr 2007 11:18:36 -0400

In this type of defined contribution plan, the employee can make contributions from his or her paycheck before taxes are taken out. The contributions go into a 401k account, with the employee often choosing the investments based on options provided under the plan. In some plans, the employer also makes contributions, matching the employee’s contributions up to a certain percentage. SIMPLE Plan and Safe Harbor 401k plans have additional employer contribution and vesting requirements.

SIMPLE Plan

questions@atlanticfinancial.com — Tue, 3 Apr 2007 12:06:26 -0400

In a SIMPLE Plan, the "SIMPLE" stands for Savings Incentive Match PLan for Employees of Small Employers. A SIMPLE plan is a plan in which a small business with one hundred or fewer employees can offer retirement benefits through employee salary reductions and matching contributions, similar to those found in a 401k plan.

Plan Fiduciary

questions@atlanticfinancial.com — Mon, 2 Apr 2007 09:26:37 -0400

Anyone who exercises discretionary authority or discretionary control over management or administration of the plan, exercises any authority or control over management or disposition of plan assets, or gives investment advice for a fee or other compensation with respect to assets of the plan. Need a Retirement Plan? Ask Atlantic Financial Today!

Business Plan

questions@atlanticfinancial.com — Fri, 23 Mar 2007 14:53:07 -0400

The Business Plan is a written explanation of the company's business model. A Business Plan is a summary of how a business intends to implement activities necessary and sufficient for the venture to succeed. Business plans are used internally for management and planning and are also used to convince outsiders such as banks or venture capitalists to invest money into a venture.

PBGC

questions@atlanticfinancial.com — Thu, 22 Mar 2007 14:37:46 -0400

The term PBGC stands for the Pension Benefit Guaranty Corporation. If a defined benefit plan is terminated, the U.S. Federal Government guarantees payment of certain benefits through a federally chartered corporation, known as the Pension Benefit Guaranty Corporation (PBGC). Need help with Retirement Planning? Ask Atlantic Financial Today!

Plan Administrator

questions@atlanticfinancial.com — Wed, 21 Mar 2007 12:21:15 -0400

The person who is identified in the plan document as having responsibility for running the retirement plan. It could be the employer, a committee of employees, a company executive, or someone hired for that purpose. Do you need help with your Retirement Plan? Ask Atlantic Financial Today!

Personal Finance

questions@atlanticfinancial.com — Tue, 20 Mar 2007 14:52:20 -0400

Personal Finance is financial planning for individuals. When a Financial Advisor assists a client with Personal Finance it generally involves analyzing current financial positions, predicting short-term and long-term needs, and recommending a financial strategy. Additional issues may involve advice on pensions, school fees, mortgages, life insurance, and investments.

Generation Skipping Trust

questions@atlanticfinancial.com — Thu, 15 Mar 2007 11:10:56 -0400

Generation Skipping Trust is a type of legally binding trust agreement in which the contributed assets are passed down to the grantor's grandchildren, not the grantor's children. The generation to which the grantor's children belong skips the opportunity to receive the assets in order to avoid the estate taxes that would apply if the assets were transferred to them.

Dynasty Trust

questions@atlanticfinancial.com — Wed, 14 Mar 2007 10:28:29 -0400

A Dynasty Trust is a trust in which assets are controlled through several generations and makes use of generation-skipping tax exemption.

Money Management

questions@atlanticfinancial.com — Tue, 13 Mar 2007 13:42:20 -0400

Money Management is the process of ensuring that an individual's holdings are invested in a matter that meets the level of risk that the individual is comfortable with. Essentially, Money Management is a combination of Financial Planning and Risk Management.

Compensation

questions@atlanticfinancial.com — Mon, 12 Mar 2007 14:50:25 -0400

Compensation is direct and indirect monetary and non-monetary rewards given to employees on the basis of the value of the job, contributions, and performance.

Safe Harbor 401k

questions@atlanticfinancial.com — Fri, 9 Mar 2007 09:49:29 -0500

A Safe Harbor 401k is similar to a traditional 401k plan, but the employer is required to make contributions for each employee. The employer contributions in Safe Harbor 401k plans are immediately 100% vested. The Safe Harbor 401k eases administrative burdens on employers by eliminating some of the complex tax rules ordinarily applied to traditional 401k plans.

Fund Selection

questions@atlanticfinancial.com — Thu, 8 Mar 2007 09:52:58 -0500

Fund selection is the process where you and your financial advisor decide how to invest your money. When you agree upon a certain mutual fund, a sum of money or other resource will be allocated to be invested into that fund. This is part of asset allocation.

Brokerage

questions@atlanticfinancial.com — Wed, 7 Mar 2007 10:18:15 -0500

A brokerage can be defined two ways:

1. The business of a broker. As in a Brokerage Firm or a firm that buys and sells stocks and bonds for its clients)

2. A fee paid to the financial advisor or stockbroker.

Vested Benefit

questions@atlanticfinancial.com — Mon, 5 Mar 2007 12:01:20 -0500

Vested Benefits are the benefits that an individual has earned the right to receive and that cannot be forfeited.

ERISA

questions@atlanticfinancial.com — Fri, 2 Mar 2007 14:09:25 -0500

The term ERISA refers to the Employee Retirement Income Security Act of 1974.

ERISA is a Federal law that sets standards of protection for individuals in most voluntarily established, private-sector retirement plans. ERISA requires plans to provide participants with plan information, including important facts about plan features and funding; sets minimum standards for participation, vesting, benefit accrual, and funding; provides fiduciary responsibilities for those who manage and control plan assets; requires plans to establish a claims and appeals process for participants to get benefits from their plans; gives participants the right to sue for benefits and breaches of fiduciary duty; and, if a defined benefit plan is terminated, guarantees payment of certain benefits through the PBGC.

Deflation

questions@atlanticfinancial.com — Wed, 28 Feb 2007 13:43:49 -0500

Deflation is a general decline in prices, often caused by a reduction in the supply of money or credit. Deflation can be caused by a decrease in government, personal or investment spending.

Deflation is the opposite of inflation. Deflation has the side effect of increased unemployment, as there is a lower level of demand within the economy. This can lead to an economic depression.

Cash Balance Plan

questions@atlanticfinancial.com — Tue, 27 Feb 2007 10:53:33 -0500

A type of defined benefit plan that includes some elements that are similar to a defined contribution plan because the benefit amount is computed based on a formula using contribution and earning credits, and each participant has a hypothetical account. Cash balance plans are more likely than traditional defined benefit plans to make lump sum distributions.

Plan Document

questions@atlanticfinancial.com — Mon, 26 Feb 2007 11:21:02 -0500

A written instrument under which a retirement plan is established and operated.

Do you have 401k or Retirement Plan questions? Ask Atlantic Financial Today !

Defined Benefit Plan

questions@atlanticfinancial.com — Fri, 23 Feb 2007 09:25:57 -0500

This type of plan, also known as the traditional pension plan, promises the participant a specified monthly benefit at retirement. Often, the benefit is based on factors such as salary, age, and years of service with the employer.

Estate

questions@atlanticfinancial.com — Thu, 22 Feb 2007 09:37:01 -0500

An Estate is defined as all of the valuable things an individual owns, such as real estate, art collections, collectibles, antiques, jewelry, investments and life insurance.

Fiduciary

questions@atlanticfinancial.com — Wed, 21 Feb 2007 10:39:09 -0500

A Fiduciary is a person, company, or association holding assets in trust for a beneficiary. The fiduciary is charged with the responsibility of investing the money wisely for the beneficiary's benefit. Some examples of fiduciaries are executors of wills and estates, receivers in bankruptcy, trustees, and those who administer the assets of underage or incompetent beneficiaries. Most U.S. States have laws about what a fiduciary may or may not do with a beneficiary's assets.

Benjamin Strong, Jr.

questions@atlanticfinancial.com — Tue, 20 Feb 2007 10:19:59 -0500

Benjamin Strong, Jr. (1872 - 1928) served as Governor of the Federal Reserve Bank of New York for 14 years until his death. Benjamin Strong exerted great influence over the policy and actions of the entire Federal Reserve System. His policy of maintaining price levels during the 1920s through the open market purchase of securities, and his willingness to maintain the liquidity of banks during panics, have been praised by monetarists.

Life Insurance

questions@atlanticfinancial.com — Thu, 15 Feb 2007 12:05:06 -0500

Life insurance is a contract between the policy owner and the insurer, where the insurer agrees to pay a sum of money upon the occurrence of the insured's death. In return, the policy owner agrees to pay a stipulated amount called a premium at regular intervals.

Community Property

questions@atlanticfinancial.com — Mon, 12 Feb 2007 09:37:30 -0500

Community Property is property acquired by either spouse during the course of a marriage. In the United States, community property is a state-level legal distinction of a married individual's assets. Example: An IRA in the name of either spouse, accumulated during the course of the marriage, would be considered community property.

Estate Planning

questions@atlanticfinancial.com — Fri, 9 Feb 2007 09:33:57 -0500

Estate Planning is the process of accumulating and disposing of an estate to meet the goals of the estate owner. A common Estate Planning goal is to maximize the portion of the estate that passes to the estate owner's beneficiaries, this often includes minimizing the impact of taxes and minimizing probate court involvement. Additional goals typically include providing for minor children and planning for incapacity.

ESOP

questions@atlanticfinancial.com — Thu, 8 Feb 2007 10:48:15 -0500

Employee Stock Ownership Plan (ESOP). An Employee Stock Ownership Plan (ESPO) is a qualified, defined contribution, employee benefit plan designed to invest primarily in the stock of the sponsoring employer. ESOPs are "qualified" in the sense that the ESOP's sponsoring company, the selling shareholder and participants receive various tax benefits. ESOPs are often used as a corporate finance strategy and are used to align the interests of a company's employees with those of the company's shareholders.

Joseph Schumpeter

questions@atlanticfinancial.com — Wed, 7 Feb 2007 10:45:03 -0500

Joseph Schumpeter (1883-1950) was an Austrian-born economist. He was educated in Austria, taught in several European Universities and then emigrated to the U.S. and taught at Harvard University. Joseph Schumpeter focused his studies on the role of the entrepreneur in the economy. He believed that innovation driven by individual and business entrepreneurs created gales of “creative destruction” that spurred on economic growth.

Insurance

questions@atlanticfinancial.com — Tue, 6 Feb 2007 15:23:36 -0500

Insurance is a contract, know as a policy, in which an individual or entity receives financial protection or reimbursement against losses from an insurance company. The insurance company pools clients' risks to make payments more affordable for the insured.

Do you have questions about an Annuity? Ask Atlantic Financial Today !

IRA Rollover

questions@atlanticfinancial.com — Mon, 5 Feb 2007 09:28:36 -0500

An IRA Rollover is a lump-sum distribution deposited from an existing retirement plan into an individual retirement account (IRA). The existing retirement plan is frequently a 401k, but it may be any other type of retirement plan.

Need help with an IRA Rollover? Do you have questions? Ask Atlantic Financial Today !

Organized Labor

questions@atlanticfinancial.com — Fri, 2 Feb 2007 10:35:40 -0500

Also known a 'union', Organized Labor refers to an association of workers united as a single, representative entity for the purpose of improving the workers' economic status and working conditions through collective bargaining with employers. There are two types of organized labor: the “horizontal union” where all members share a common skill and the “vertical union” which is composed of workers from who are all in the same industry.