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
- Unearned IncomeMoney that comes from sources other than working, such as interest, dividends, or capital gains.
- Capital Gains TaxA tax on the profit you make when you sell an investment or asset for more than you paid for it.
- Long-Term Capital GainsProfit from selling an asset held more than a year, usually taxed at lower rates than ordinary income.
- Index FundA fund that owns a broad slice of the market at low cost — the backbone of most investing.
- Tax DeferralDelaying taxes on money until a later date, letting it grow untaxed in the meantime inside certain accounts.
More in Taxes
Plain-English education — not personalized legal, tax, or investment advice.