DEFERRED ACCOUNT
An account that postpones tax liabilities until a future date. A deferred account refers to one where there is a deferral of tax, usually in accounts specifically designed for retirement, such as an Individual Retirement Account (IRA) in the U.S. Deferred accounts have proved to be enormously popular since their introduction, especially as fewer companies offer pensions and the burden of saving for retirement has shifted to individuals. The rationale behind deferred accounts is that they facilitate saving for retirement by enabling investments to grow tax-free until withdrawal. This tax-free compounding effect may generally enable investments in deferred accounts to grow faster than in taxable accounts.
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Target Return
Pricing model used in valuing a business based on what an investor expects from any capital invested in the firm. It is computed by adding the amou ...
Remainder Man
An individual who receives the remaining principal in a trust account after all required payments have been made, such as those to the beneficiary ...
Average Collected Balance
The total average of the collected funds in a bank account in a month. The balance is calculated by adding the collected balance and dividing it by ...
Bankable Funds
Forms of payment that are accepted at financial institutions. Retailers and other organizations that directly accept payments from customers typica ...
Prudent-Person Rule
A legal maxim that restricts the discretion in a client's account to investments that a prudent person seeking reasonable income and preservati ...
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