A fuller guide to this term is on the way. In the meantime, the related terms below explain the ideas around it.
Related MoneyPedia terms
- Asset AllocationHow you split your money among stocks, bonds, and cash — the biggest driver of risk and growth.
- Taxable AccountA standard investment account with no special tax breaks, where gains and dividends are taxed each year.
- Tax-Advantaged AccountAn account offering tax breaks on contributions, growth, or withdrawals to encourage saving for goals like retirement.
- Capital Gains TaxA tax on the profit you make when you sell an investment or asset for more than you paid for it.
- Roth IRAA retirement account funded with after-tax money that grows and comes out tax-free.
- Traditional IRAA retirement account where you often deduct contributions now and pay taxes later when you withdraw the money.
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Plain-English education — not personalized legal, tax, or investment advice.