A status symbol is an object which is used to indicate one’s social or economic status. In some cases, status symbols are also used to indicate one’s political affiliation or religious beliefs. The term “status symbol” can be traced back to the early 1800s, when it was first used in print by French writer Honoré … Read more
A blind trust is a financial arrangement in which a third party, called a trustee, manages assets for the benefit of another person, called the beneficiary. The trustee is legally obligated to manage the assets in the best interests of the beneficiary, and the beneficiary is not allowed to know or control how the assets … Read more
Conspicuous consumption is the act of spending money on luxury items or services in order to display one’s wealth or social status. The term was first coined by economist Thorstein Veblen in his 1899 book The Theory of the Leisure Class. Veblen argued that the wealthy elite engage in conspicuous consumption as a way to … Read more
An Ultra-High-Net-Worth Individual (UHNWI) is an individual with a net worth of over $30 million. This designation is given to only 0.003% of the world’s population and is typically used to describe people with a high degree of financial assets and income. UHNWIs are typically defined as individuals who have a net worth of $30 … Read more
Simplified Employee Pension (SEP) IRA: How It Works Does SEP IRA grow tax free? SEP IRA funds grow tax-deferred, which means that you won’t pay taxes on the account’s growth until you withdraw the money. Does a SEP IRA count as a retirement plan at work? A SEP IRA is an individual retirement account, so … Read more
IRS Publication 590-B: Distribution from IRAs Do you pay Social Security tax on IRA withdrawals? No, you do not pay Social Security tax on IRA withdrawals. What age does RMD stop? The age at which you are required to take minimum distributions from your retirement account depends on the type of account. For traditional IRAs, … Read more
Reconversion Definition: The process of reconverting an Individual Retirement Account (IRA) back into a traditional IRA. This is typically done when the account holder discovers that he or she does not qualify for the special tax benefits that are available with a Roth IRA. Is an IRA conversion considered a rollover? Yes, an IRA conversion … Read more
How a Roth IRA Works and How to Start One Do you pay taxes on Roth IRA? You do not pay taxes on Roth IRA contributions, but you may pay taxes on Roth IRA distributions. How much can I put in Roth IRA every year? The Roth IRA contribution limit for 2019 is $6,000, or … Read more
A collateralized borrowing and lending obligation, or CBLO, is a type of money market instrument in which participants borrow and lend funds while posting collateral with a clearinghouse. The collateral is typically in the form of government securities, and the clearinghouse acts as a middleman to match borrowers and lenders. CBLO transactions are typically conducted … Read more
An institutional deposits corporation (IDC) is a type of money market account that is offered by some banks and financial institutions. This account is typically only available to large organizations, such as businesses, corporations, and other institutions. The main benefit of an IDC account is that it offers a higher interest rate than a regular … Read more
