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Today's Terms
Asset Allocation
Definition:
When you divide your money among various types of investments, such as stocks, bonds, and short-term investments (also known as "instruments"), you are allocating your assets. The way in which your money is divided is called your asset allocation.
Tax-deferred earnings (investments)
Definition:
Earnings on which taxes are not paid until a future date, usually when funds are withdrawn. The TSP and traditional IRAs are examples of vehicles that offer tax-deferred earnings.
Foreign Bank Accounts
Definition:
There is a thriving industry of offshore practitioners advising U.S. citizens to set up offshore bank accounts.
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