Wealth Management – Principles of Investment, Financial Planning, Tax Strategy & Portfolio
Construction
401k - correct answer ✔✔A defined contribution plan that automatically takes out money from
an employee's paycheck before income taxes and invests it in mutual funds for purposes of
retirement savings
FICA - correct answer ✔✔Short for Federal Insurance Contributions Act, the name given on the
paycheck stub for Social Security and Medicare taxes. The employee pays some of the FICA tax,
and the employer pays some of this tax for each employee. Social Security pays benefits for
older people, people with disabilities, and minor children and surviving spouses of deceased
workers. Medicare pays for hospital insurance for those over 65.
Asset - correct answer ✔✔something of value; a resource; an advantage
Liability - correct answer ✔✔a debt; something disadvantageous
Net Worth - correct answer ✔✔total assets minus total liabilities
Personal Budget - correct answer ✔✔a specific plan for spending your income
Income - correct answer ✔✔the financial gain (earned or unearned) accruing over a given
period of time
Expenses - correct answer ✔✔all costs or bills related to the business
Maintain - correct answer ✔✔keep in safety and protect from harm, decay, loss, or destruction
Checkbook Register - correct answer ✔✔Place to create a checking account.
, Savings Register - correct answer ✔✔Place to create a savings account.
Deposit - correct answer ✔✔a partial payment made at the time of purchase
Withdrawal - correct answer ✔✔the act of taking out money or other capital
Reconcile - correct answer ✔✔come to terms
Bank Statement - correct answer ✔✔a report of deposits, withdrawals, and bank balances sent
to a depositor by a bank
Transaction - correct answer ✔✔a business activity that changes assets, liabilities, or owner's
equity
Transaction Fee - correct answer ✔✔an extra charge for various credit activities such as using an
ATM or receiving a cash advance
Balance - correct answer ✔✔something left after other parts have been taken away
Overdraft Protection - correct answer ✔✔an automatic loan made to you if you write a check
for more money than you have in your account
Credit - correct answer ✔✔An arrangement to receive cash, goods, or services now and pay for
them in the future.
Construction
401k - correct answer ✔✔A defined contribution plan that automatically takes out money from
an employee's paycheck before income taxes and invests it in mutual funds for purposes of
retirement savings
FICA - correct answer ✔✔Short for Federal Insurance Contributions Act, the name given on the
paycheck stub for Social Security and Medicare taxes. The employee pays some of the FICA tax,
and the employer pays some of this tax for each employee. Social Security pays benefits for
older people, people with disabilities, and minor children and surviving spouses of deceased
workers. Medicare pays for hospital insurance for those over 65.
Asset - correct answer ✔✔something of value; a resource; an advantage
Liability - correct answer ✔✔a debt; something disadvantageous
Net Worth - correct answer ✔✔total assets minus total liabilities
Personal Budget - correct answer ✔✔a specific plan for spending your income
Income - correct answer ✔✔the financial gain (earned or unearned) accruing over a given
period of time
Expenses - correct answer ✔✔all costs or bills related to the business
Maintain - correct answer ✔✔keep in safety and protect from harm, decay, loss, or destruction
Checkbook Register - correct answer ✔✔Place to create a checking account.
, Savings Register - correct answer ✔✔Place to create a savings account.
Deposit - correct answer ✔✔a partial payment made at the time of purchase
Withdrawal - correct answer ✔✔the act of taking out money or other capital
Reconcile - correct answer ✔✔come to terms
Bank Statement - correct answer ✔✔a report of deposits, withdrawals, and bank balances sent
to a depositor by a bank
Transaction - correct answer ✔✔a business activity that changes assets, liabilities, or owner's
equity
Transaction Fee - correct answer ✔✔an extra charge for various credit activities such as using an
ATM or receiving a cash advance
Balance - correct answer ✔✔something left after other parts have been taken away
Overdraft Protection - correct answer ✔✔an automatic loan made to you if you write a check
for more money than you have in your account
Credit - correct answer ✔✔An arrangement to receive cash, goods, or services now and pay for
them in the future.
