Glossary
| Term | Definition |
|---|---|
| Tax Credit |
A credit subtracted from income taxes after preliminary tax liability has been calculated.
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| Tax Deferred |
A condition of certain plans and accounts under which the funds in the plan or account along with any accrued interest, dividends, or other capital gains are not subject to taxes until the funds are withdrawn.
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| Technical Analysis |
A method of evaluating securities by examining recent price movements and trends in an attempt to identify patterns that can suggest future activity. Generally, technical analysis is the opposite of fundamental analysis.
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| Tenancy in Common |
A form of property ownership under which two or more people have an undivided interest in the property and in which the interest of a deceased owner passes to his or her beneficiaries rather than to the surviving owners.
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| Term Insurance |
Life insurance that provides coverage for a specific period. If the policyholder dies during that time, his or her beneficiaries receive the benefit from the policy. If the policyholder outlives the term of the policy, it is no longer in effect. Several factors will affect the cost and availability of life insurance, including age, health, and the type and amount of insurance purchased. Life insurance policies have expenses, including mortality and other charges. If a policy is surrendered prematurely, the policyholder may also pay surrender charges and have income tax implications. You should consider determining whether you are insurable before implementing a strategy involving life insurance. Any guarantees associated with a policy are dependent on the ability of the issuing insurance company to continue making claim payments.
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| Testamentary Trust |
A trust created by a will or trust that is established on the death of the trustor. Using a trust involves a complex set of tax rules and regulations. Before moving forward with a trust, consider working with a professional who is familiar with the rules and regulations.
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| Time Horizon |
The amount of time an investor plans to hold an investment or portfolio of investments.
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| Title |
A legal document that serves as evidence of ownership of an asset or security.
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| Total Return |
The total of all earnings from an investment or portfolio, including both capital appreciation and any income received.
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| Treasuries |
Debt securities issued by the United States government. Treasury bills normally have maturities of less than one year, while Treasury notes have maturities between one and 10 years, and Treasury bonds have maturities between 10 and 30 years. U.S. Treasury securities are guaranteed by the federal government as to the timely payment of principal and interest. However, if you sell a Treasury security prior to maturity, it could be worth more or less than the original price paid.
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| Trustee |
An individual, corporation, or other entity that manages property held in a trust.
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| Trustee-to-Trustee Transfer |
A means for transferring assets from one qualified retirement program to another without triggering a taxable event.
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