What Is the Sacrifice Ratio? The sacrifice ratio is an economic ratio that measures the effect of rising and falling inflation on a country’s total production and output. Costs are associated with the slowing of economic output in response to a drop in inflation. When prices fall, companies are less incentivized to produce goods and
What Is a Safe Deposit Box? A safe deposit box (or safety deposit box) is an individually secured container—usually a metal box—that stays in the safe or vault of a federally insured bank or credit union. Safe deposit boxes are used to keep valuables, important documents, and sentimental keepsakes protected. Customers rely on the security
What Is a Safe Harbor? A safe harbor is a legal provision to sidestep or eliminate legal or regulatory liability in certain situations, provided that certain conditions are met. The phrase safe harbor also has uses in the finance, real estate, and legal industries. The term safe harbor may also be used to refer to
What Is a Safe Haven? A safe haven is a type of investment that is expected to retain or increase in value during times of market turbulence. Investors seek out safe havens in order to limit their exposure to losses in the event of market downturns. However, what assets are actually deemed safe havens can
What Is SAFE Investment Company (China)? The SAFE Investment Company is the Hong Kong branch of the Chinese sovereign wealth fund. SAFE is an acronym for State Administration of Foreign Exchange. SAFE’s Hong Kong subsidiary opened in 1997 with $20 billion in capital. Today, the SAFE Investment Company is a private company, however, officials from
What Is Safekeeping? Safekeeping, also known as safe keep, is the storage of assets or other items of value in a protected area. Many individuals choose to place financial assets in safekeeping. To do so, individuals may use self-directed methods of safekeeping or the services of a bank or brokerage firm. Financial institutions are custodians
What Is a Safekeeping Certificate? In finance, the term “safekeeping certificate” refers to a legal document stating the beneficial ownership of securities held by an institution on behalf of their owner. In modern financial markets, these kinds of safekeeping relationships are commonly used by investors, who rely on brokerage firms and other intermediaries to buy
What Is the Safe Withdrawal Rate (SWR) Method? The safe withdrawal rate (SWR) method is one way that retirees can determine how much money they can withdraw from their accounts each year without running out of money before reaching the end of their lives. The safe withdrawal rate method is a conservative approach that tries
What Is a Registered Retirement Income Fund (RRIF)? A registered retirement income fund (RRIF) is a retirement fund similar to an annuity contract, which pays out income to one or more beneficiaries. Often, owners of registered retirement savings plans (RRSP) roll over the balance from those plans into an RRIF in order to fund a
What Is a Registered Retirement Savings Plan (RRSP)? A Registered Retirement Savings Plan (RRSP) is a retirement savings and investing vehicle for employees and the self-employed in Canada. Pre-tax money is placed into an RRSP and grows tax-free until withdrawal, at which time it is taxed at the marginal rate. Registered Retirement Savings Plans have many
