What is Retirement Planning?

Retirement planning is the process of setting goals for your retirement years and then creating a plan to fulfill those goals. Executing a retirement plan requires most people to put aside some of their current income for long-term savings and investment. You can use tax-sheltered vehicles, such as traditional individual retirement accounts (IRAs) and employer pension plans, to fund part of your... Continue reading

What Is an Employee Stock Purchase Program (ESPP)?

An employee stock purchase plan is a program that permits employees to use some of their paycheck to buy stock in the company for which they work at a discount. Such plans often are presented as an extra benefit and are used for employee recruitment and retention purposes. Continue reading

What Are Bonds?

A bond is a type of debt issued by a corporation, government or other organization where the purchaser pays a certain amount to purchase the bond and, in exchange, will receive either a lump sum after a certain period of time or specified recurring payments over a period of time. For example, you might pay $50 to buy a bond that will pay you $75 in 10 years or will pay you $10 per year for the... Continue reading

What Is Income?

Income refers to money that you make from a range of sources including working, business activities and investments. For example, your salary, tips and bonuses count as income just like money you make from investing in the stock market and owning a business. Income also includes rent payments made to you by a tenant and royalties such as those paid to writers for books and songs. Continue reading

What Is a Periodic Interest Rate?

The periodic interest rate means the interest rate over a specific period of time. The period rate helps you figure out how much interest accrues when interest compounds on a loan more than once per year. It also helps you figure out the interest when you take out a loan for less than a year, such as carrying a balance on your credit card. Continue reading

What Is Savings?

Savings refer to money you put aside for future use rather than spending it immediately. In addition to the benefits of saving up for future purchases, delaying an impulse purchase also helps you decide whether it is something you really need, or a waste of money you will regret shortly after buying. Continue reading

What Is an ESOP?

An employee stock ownership plan is one of several ways for employees to receive stock shares from their employers. Other methods include stock options, bonuses, direct purchase and profit-sharing plans. As of 2014, about 7,000 U.S. companies sponsored ESOPs, covering 13.5 million employees, making it the nation's most common type of employee ownership. ESOP's have a number of benefits worth... Continue reading