What Is a 529 Plan? A 529 plan is a tax-advantaged savings plan designed to help pay for education. Originally limited to postsecondary education costs, it was expanded to cover K-12 education in 2017 and apprenticeship programs in 2019. The two major types of 529 plans are education savings plans and prepaid tuition plans. Education
What Is the 52-Week Range? The 52-week range is a data point traditionally reported by printed financial news media, but more modernly included in data feeds from financial information sources online. The data point includes the lowest and highest price at which a stock has traded during the previous 52 weeks. Investors use this information
A 5/6 hybrid adjustable-rate mortgage (5/6 hybrid ARM) is an adjustable-rate mortgage (ARM) that has a fixed interest rate for the first five years, after which the interest rate can change every six months. Key Takeaways A 5/6 hybrid adjustable-rate mortgage (5/6 hybrid ARM) is a mortgage with an interest rate that is fixed for
What Is the 80-20 Rule? The 80-20 rule, also known as the Pareto Principle, is a familiar saying that asserts that 80% of outcomes (or outputs) result from 20% of all causes (or inputs) for any given event. In business, a goal of the 80-20 rule is to identify inputs that are potentially the most
What Is an 8-K? An 8-K is a report of unscheduled material events or corporate changes at a company that could be of importance to the shareholders or the Securities and Exchange Commission (SEC). Also known as a Form 8K, the report notifies the public of events, including acquisitions, bankruptcy, the resignation of directors, or
What is an 8(a) Firm? An 8(a) firm is a small business that is owned and operated by socially and economically disadvantaged citizens and that has been accepted into the 8(a) Business Development Program. This program is administered by the Small Business Administration (SBA), the United States agency charged with supporting the growth and development of
What Is the 90/10 Strategy? Legendary investor Warren Buffett invented the “90/10″ investing strategy for the investment of retirement savings. The method involves deploying 90% of one’s investment capital into stock-based index funds while allocating the remaining 10% of money toward lower-risk investments. This system aims to generate higher yields in the overall portfolio over
DEFINITION of 90-Day Letter 90-Day Letter is an IRS notice stating that there was a discrepancy or error within an individual’s taxes and they will be assessed unless petitioned. The taxpayer has 90 days to respond, otherwise the audit deficiencies will result in reassessment. Also known as a Notice of Deficiency. BREAKING DOWN 90-Day Letter Once you
What Was the 500 Shareholder Threshold? The 500 shareholder threshold for investors is an outdated rule required by the Securities and Exchange Commission (SEC) that triggered public reporting requirements of a company when it reached that many or more distinct shareholders. Section 12(g) of the Securities Exchange Act of 1934 calls for issuers of securities
Homebuyers face may choices in types of mortgages, from longer-term fixed rate loans to shorter-term adjustable-rate loans. A 2/28 adjustable-rate mortgage is one type of adjustable rate mortgage that is less common than the traditional 30-year fixed mortgage, but it may suit some buyers’ needs. A 2/28 mortgage essentially offers a two-year fixed interest rate
