Glossary
A
Adjusted Gross Income (AGI)
Income on which an individual computes federal income tax. It is determined by
subtracting certain allowable adjustments from gross income.
Activities of Daily Living (ADL)
The self-care and mobility skills required for independence in normal everyday living.
This does not include recreational or sports activities. (Bathing, eating, dressing,
transferring from bed to chair, toileting, continence or severe cognitive impairment)
Acute Care
Care rendered in the course of treating an illness, injury or condition marked by a
sudden onset or change of status requiring prompt attention, which may include
hospitalization. It is limited in duration and is not expected to last indefinitely.
Administrator
A person appointed by the court to settle an estate when there is no will.
After-Tax Return
The return from an investment after the effects of taxes have been taken into account.
Affidavit
Written statement made under oath before an authorized person, such as a notary
public.
Alternative Minimum Tax (AMT)
A method of calculating income tax that disallows certain deductions, credits, and
exclusions. This was intended to ensure that individuals, trusts, and estates that
benefit from tax preferences do not escape all federal income tax liability. People must
calculate their taxes both ways and pay the greater of the two.
Annuity
An insurance-based contract that provides future payments at regular intervals in
exchange for current premiums. Annuity contracts are usually purchased from banks,
credit unions, brokerage firms, or insurance companies.
Annuity (Equity-Indexed)
Also known as an EIA. An annuity that offers both a guarantee of principal and
earnings linked to the upside movement of an equity index. EIA's have characteristics
of both fixed and variable annuities. EIA's offer a guaranteed interest rate and have
the potential of earning more that a fixed annuity. In exchange for this potential reward
these annuities may cap the potential gain on your investment to certain percentage.
In addition, if you surrender your EIA early, you may have to pay a significant
surrender charge and a 10% tax penalty.
Annuity (FPDA)
Flexible contributions may be made as often and in whatever amounts the contract
owner desires; benefits begin one year from the date of purchase. Deferred annuities
are normally purchased to defer taxes on growth and accumulation, such as a
retirement fund.
Annuity (SPDA)
A single premium (lump sum) is put into an account from which the annuitant will draw
the periodic benefits (funds) at some specific time in the future. Benefits begin more
than one year from the date of purchase.
Annuity (SPIA)
A single premium (lump sum) is put into an account from which the annuitant may
immediately begin drawing benefits (funds). Funds to be drawn with a year of issue.
The immediate annuity essentially does not have an accumulation period.
Asset
Anything owned that has monetary value.
Asset Allocation
The process of repositioning assets within a portfolio to maximize return for a given
level of risk. This process is usually done using the historical performance of the asset
classes within sophisticated mathematical models.
Asset Class
A category of investments with similar characteristics.
Audit
The examination of the accounting and financial documents of a firm by an objective
professional. The audit is done to determine the records' accuracy, consistency, and
conformity to legal and accounting principles.
Income on which an individual computes federal income tax. It is determined by
subtracting certain allowable adjustments from gross income.
Activities of Daily Living (ADL)
The self-care and mobility skills required for independence in normal everyday living.
This does not include recreational or sports activities. (Bathing, eating, dressing,
transferring from bed to chair, toileting, continence or severe cognitive impairment)
Acute Care
Care rendered in the course of treating an illness, injury or condition marked by a
sudden onset or change of status requiring prompt attention, which may include
hospitalization. It is limited in duration and is not expected to last indefinitely.
Administrator
A person appointed by the court to settle an estate when there is no will.
After-Tax Return
The return from an investment after the effects of taxes have been taken into account.
Affidavit
Written statement made under oath before an authorized person, such as a notary
public.
Alternative Minimum Tax (AMT)
A method of calculating income tax that disallows certain deductions, credits, and
exclusions. This was intended to ensure that individuals, trusts, and estates that
benefit from tax preferences do not escape all federal income tax liability. People must
calculate their taxes both ways and pay the greater of the two.
Annuity
An insurance-based contract that provides future payments at regular intervals in
exchange for current premiums. Annuity contracts are usually purchased from banks,
credit unions, brokerage firms, or insurance companies.
Annuity (Equity-Indexed)
Also known as an EIA. An annuity that offers both a guarantee of principal and
earnings linked to the upside movement of an equity index. EIA's have characteristics
of both fixed and variable annuities. EIA's offer a guaranteed interest rate and have
the potential of earning more that a fixed annuity. In exchange for this potential reward
these annuities may cap the potential gain on your investment to certain percentage.
In addition, if you surrender your EIA early, you may have to pay a significant
surrender charge and a 10% tax penalty.
Annuity (FPDA)
Flexible contributions may be made as often and in whatever amounts the contract
owner desires; benefits begin one year from the date of purchase. Deferred annuities
are normally purchased to defer taxes on growth and accumulation, such as a
retirement fund.
Annuity (SPDA)
A single premium (lump sum) is put into an account from which the annuitant will draw
the periodic benefits (funds) at some specific time in the future. Benefits begin more
than one year from the date of purchase.
Annuity (SPIA)
A single premium (lump sum) is put into an account from which the annuitant may
immediately begin drawing benefits (funds). Funds to be drawn with a year of issue.
The immediate annuity essentially does not have an accumulation period.
Asset
Anything owned that has monetary value.
Asset Allocation
The process of repositioning assets within a portfolio to maximize return for a given
level of risk. This process is usually done using the historical performance of the asset
classes within sophisticated mathematical models.
Asset Class
A category of investments with similar characteristics.
Audit
The examination of the accounting and financial documents of a firm by an objective
professional. The audit is done to determine the records' accuracy, consistency, and
conformity to legal and accounting principles.
A
Robert Valentine, Ca. Insurance License# 0C23496, is a Registered Investment Advisor Representative with Financial and Retirement
Management, a Registered Investment Advisor and a registered representative with Securities America, Inc., a Registered Broker Dealer.
Securities offered through Securities America, Inc., Member NASD/SIPC. Financial and Retirement Management and Securities America
are not affiliated. This site has been published for residents of AZ, CA, FL, IL, MI, MO, and TX. All information herein has been prepared
solely for informational purposes, and it is not an offer to buy or sell, or a solicitation of an offer to buy or sell any security or instrument
or to participate in any particular trading strategy. Financial and Retirement Management does not make any representations or
warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third
party, whether linked to this web site or incorporated herein, and takes no responsibility. All such information is provided solely for
convenience purposes only. Financial and Retirement Management and Securities America do not endorse, control, or receive
compensation from any of the third party advertisers within this website. Neither Financial and Retirement Management or Securities
America are affiliated with any of the firms or entities listed unless specifically stated.
Management, a Registered Investment Advisor and a registered representative with Securities America, Inc., a Registered Broker Dealer.
Securities offered through Securities America, Inc., Member NASD/SIPC. Financial and Retirement Management and Securities America
are not affiliated. This site has been published for residents of AZ, CA, FL, IL, MI, MO, and TX. All information herein has been prepared
solely for informational purposes, and it is not an offer to buy or sell, or a solicitation of an offer to buy or sell any security or instrument
or to participate in any particular trading strategy. Financial and Retirement Management does not make any representations or
warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third
party, whether linked to this web site or incorporated herein, and takes no responsibility. All such information is provided solely for
convenience purposes only. Financial and Retirement Management and Securities America do not endorse, control, or receive
compensation from any of the third party advertisers within this website. Neither Financial and Retirement Management or Securities
America are affiliated with any of the firms or entities listed unless specifically stated.
Copyright © 2006 The Money Alert.com. All rights reserved.
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