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Tip of the Day Put At Least 20% Down On A Home

Put At Least 20% Down On A Home - Your home is most likely the biggest purchase you will make in your lifetime, so when planning for the big day,...

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401(k)

Definition: When you get your first real job (a full-time job), this is one of the benefits you might receive.  It's named after its location in the government tax code and it allows you to save for retirement.  When you withdraw the money, it'll be tax-free.  In fact, your company might even match your savings dollar-for-dollar up to a certain amount per year (usually under $10,000)!

One downside: Because 401(k) plans are directed by the company you work for, you are not given quite as many investment possibilities.  Most companies will either hire and outside professional to manage the 401(k) plans or they will contract with a mutual fund company to give you a small, core group of mutual funds to choose from.

TeenAnalyst advice: Because of the match most employers make (50-100% match), it's in your best interest to utilize your 401(k) plan.  However, because 401(k) plans limit the amount you can contribute, we also recommend opening up another investment account as well.

 

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www.dirtygirl.ml said:

It's named after its location in the government tax code and it allows you to save for retirement.

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Definition of the Day Law of One Price

Law of One Price - The law of one price relates to the theory that any commodity, asset or security will have the same price in more than one exchange. Should the price differ in anyway, then by what are called arbitrage opportunities an equality will be achieved. Essentially the...

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