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Required Minimum Distributions (RMDs) are the mandatory, annual, taxable withdrawal amounts you must take from traditional IRAs, SEP IRAs, SIMPLE IRAs, and 401(k) or 403(b) retirement plans. Generally, you must start taking RMDs at age 73 (rising to 75 in 2033), with the first withdrawal due by April 1st of the year after you turn 73.
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A Health Savings Account is a tax-advantaged personal savings account available to individuals enrolled in a High Deductible Health Plan. It allows you to pay for qualified medical expenses—like deductibles, copays, and prescriptions—using pre-tax funds. HSA funds roll over annually, are yours to keep even if you change employers, and can be invested for tax-free growth. It has triple tax advantages.
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A Health Insurance Marketplace has been created by the act. It regulates exchanges or marketplaces, where individuals can compare and purchase health plans.
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The 2026 Social Security Cost of Living Adjustment (COLA) is 2.8% and is designed to help benefits keep pace with inflation. This annual increase is based on the % rise in the Consumer Price Index for Urban Wage Earners and Clerical Workers.
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ETF's are baskets of securities - stocks, bonds, commodities that trade on stock exchanges like individual shares. They offer diversification, lower fees, and higher tax efficiency than mutual funds, allowing investors to buy into sectors or markets instantly. Investors buy ETFs through brokerage accounts.
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AGI is an individual's total gross income minus specific deductions, or "adjustments", such as student loan interest, IRA contributions, or educator expenses. It serves as the foundation for determining taxable income and eligibility for tax credits
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AUM is the total market value of all financial assets - stocks,bonds, cash etc, that a firm manages on behalf of its clients. AUM fees are a percentage-based fee charged by financial advisors to manage portfolios. It could range from 0.5% to 1.5% but one needs to work with their advisor to understand the terms.
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MFJ is a tax filing status (Married Filing Jointly) and there are other types too MFS,Single, Head of household, Qualifying surviving spouse etc.
Based on filing status the standard deduction, tax rates and credit eligibility changes based on IRS guidelines.
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A REIT is a company that owns, operates, or finances income-producing real estate across various sectors, such as apartments, malls and offices.
Modeled after mutual funds, REITs allow individuals to buy shares in commercial real estate portfolios, offering regular dividends and liquidity.
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This ratio is a metric that measures a company's current share price relative to its earnings per share. it shows how much
investors are willing to pay for $1 of a company's earnings, acting as a tool to determine if a stock is overvalued or undervalued.
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It is a federal law that allows employees and their families to temporarily keep their employer-sponsored health insurance (usually
18 - 36 months) after a qualifying event - such as job loss, reduction in hours, or death - causes loss of coverage. You can take
COBRA after quitting a job by paying full premium for coverage plus 2% administrative fee for the time stipulated.