What Is The National Association of Personal Financial Advisors (NAPFA)? The National Association of Personal Financial Advisors (NAPFA) is a professional association for U.S.-based, fee-only financial advisors. Formed in 1983, NAPFA requirements include asking its members to adhere to the organization’s code of ethics and take an annual fiduciary oath. Members must provide independent, objective
What Is the National Average Wage Index (NAWI)? The National Average Wage Index (NAWI) is a measure of U.S. wage trends calculated annually by the Social Security Administration (SSA). The NAWI is dependent on income subject to federal income taxes and contributions to deferred compensation plans. The SSA primarily uses the National Average Wage Index to
What Is a National Bank? In the United States, a national bank is a commercial bank. The comptroller of the currency of the U.S. Treasury will charter a national bank. This institution will function as a member bank of the Federal Reserve and is an investing member of its district Federal Reserve Bank. National banks
What Is National Currency? A national currency is a legal tender issued by a country’s central bank or monetary authority. It is typically the predominant medium of exchange for purchasing goods and services. In the United States, the dollar is the primary form of currency, backed by the full faith and credit of the government and
What Is the National Foundation for Credit Counseling (NFCC)? The National Foundation for Credit Counseling (NFCC) is a national network of non-profit credit counseling organizations. One of the primary services provided by NFCC member agencies is counseling people who have taken on too much debt, with the goal of keeping them from declaring bankruptcy. To
National Insurance Contributions (NIC): An Overview National Insurance Contributions (NIC) are taxes paid by British employees and employers to fund government benefits programs, including state pensions. The contributions are made through payroll deductions. The NIC deduction works much like the FICA withholding system in the U.S. (FICA stands for Federal Insurance Contributions Act. The funds
What Is Nationalization? Nationalization refers to the action of a government taking control of a company or industry, which generally occurs without compensation for the loss of the net worth of seized assets and potential income. The action may be the result of a nation’s attempt to consolidate power, resentment of foreign ownership of industries
What Is Mutual Fund Yield? Mutual fund yield measures the income return of a mutual fund. It is calculated by dividing the annual dividend payment by the value of a mutual fund’s shares. Mutual fund yields vary with the fund’s market value and changes to the annual dividend distribution. The mutual fund yield is typically
What Is a Mutual Insurance Company? A mutual insurance company is an insurance company that is owned by policyholders. The sole purpose of a mutual insurance company is to provide insurance coverage for its members and policyholders, and its members are given the right to select management. Mutual insurance companies make investments in portfolios like a regular
What Is Mutualization of Risk? The mutualization of risk is the process of dividing up exposure to potential financial losses among several insurance policyholders, investors, businesses, organizations, or people. Mutualizing risk lowers the overall potential for significant financial loss to any one entity. However, it also lowers the potential pay-off to the single entity since the rewards
