GLOSSARY
OF TERMS - page T
A
B C
D E
F G
H I
J K L
M N
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Q R S
T U
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Term Life Insurance
An insurance policy in effect for a specific period of time
(the term) that pays a predetermined amount of money to a
beneficiary in the event that the insured dies while the policy
is inforce. There are several variations of term insurance.
Title
A legal document designating ownership of an asset.
Title Search
A check of the title records to ensure that the seller or
current owner is the legal owner of the property and to ascertain
the states of other liens or claims outstanding.
Traditional IRA
A retirement account to which you can contribute up to $3,000
per year (or 100% of your compensation, whichever is less)
in 2002 through 2004. The limit increases to $4,000 per year
in 2005 through 2007, and to $5,000 in 2008 and beyond. Individuals
aged 50 and older may also be eligible to make a $500 catch-up
contribution for 2002 through 2005 and $1,000 more each year
thereafter. IRAs give your money the potential to grow tax
deferred and, depending on your personal circumstances, contributions
may be tax deductible (withdrawals prior to age 59 1/2 may
be assessed a 10% IRS penalty). Withdrawals from IRAs are
taxed at then-current rates.
Treasury Bills
Short-term debt securities issued by the U.S. Treasury, "T-bills"
typically sell at less than par (face) value and mature within
one year. The interest an investor earns is the difference
between the buying price and the amount paid at maturity.
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