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403(b) Plan

What is a ‘403(b) Plan’ A 403(b) plan is a retirement plan for specific employees of public schools, tax-exempt organizations and certain ministers. These plans can invest in either annuities or mutual funds. A 403(b) plan is also another name for a tax-sheltered annuity (TSA) plan, and the features of a 403(b) plan are comparable to …

Fully Vested

What is ‘Fully Vested’ Fully vested is a person’s right to the full amount of some type of benefit, most commonly employee benefits such as stock options, profit sharing or retirement benefits. Benefits that must be fully vested benefits often accrue to employees each year, but they only become the employee’s property according to a …

Certified Financial Planner – CFP

What is a ‘Certified Financial Planner – CFP’ A certified financial planner (CFP) refers to the certification owned and awarded by the Certified Financial Planner Board of Standards, Inc. The CFP designation is awarded to individuals who successfully complete the CFP Board’s initial and ongoing certification requirements. Individuals desiring to become a CFP professional must …

Reference Number

What is a ‘Reference Number’ A reference number is a unique identifier assigned to each transaction made using a credit or debit card. A unique reference number is technologically created and designated for a single transaction. It helps to distinctively identify transactions in records and electronic databases used to monitor transactions associated with a card. …

Void Transaction

What is a ‘Void Transaction’ A void transaction is a debit or credit card purchase that is canceled after it has been authorized but before it has been settled. A void transaction does not appear on the customer’s account statement, though it might appear in a list of pending transactions when the customer checks their …

28/36 Rule

What is the ’28/36 Rule’ The 28/36 Rule is the rule-of-thumb for calculating the amount of debt that can be taken on by an individual or household. The 28/36 Rule states that a household should spend a maximum of 28% of its gross monthly income on total housing expenses and no more than 36% on …