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Plans set up by a company to help workers finance their pension. The 408(k) plan is a simple edition of the popular 401(k) plan but is designed for more compact companies (those with lower than 25 employees). Description It is also available to self-employed individuals. Under the plan, workers can play role pretax dollars to […]
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Definition of 403(b) Plan A 403(b) plan is a retirement living plan for specific workers of public educational institutions, tax-exempt companies and certain ministers. These plans can invest in either annuities or common resources. A 403(b) plan is another name for a tax-sheltered premium (TSA) plan. Brief Explanation of 403(b) Plan Employees may make wage deferral […]
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Definition of 401(k) plan A 401(k) plan is a certified employer-established plan to which certified workers may create wage deferral (salary reduction) efforts on a post-tax and/or pretax foundation. Brief Explanation of 401(k) plan Companies providing a 401(k) plan may create related or non-elective efforts to the program regarding certified workers and may also add a […]
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Definition of 401(a) plan A 401(a) plan is a money-purchase pension plan that is set up by a company. Brief Explanation of 401(a) plan The program allows for efforts by the company, the staff member or both. Participation quantities are either dollar-based or percentage-based. And the supporting company determines qualifications and the vesting schedule. Funds […]
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Definition of 3-6-3 Rule 3-6-3 Rule is used to relate to an “unofficial rule” under which loan agencies once managed, which refers to it being noncompetitive and simple. Brief Explanation of 3-6-3 Rule The 3-6-3 rule explains how lenders would give 3% attention on depositors’ records, offer the depositors cash at 6% attention and then […]
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Definition of 341 Meeting 341 Meeting is the meeting of lenders that occurs when a person information section seven bankruptcy. A 341 meeting gets its name from section 341 of the bankruptcy code. Brief Explanation of 341 Meeting This meeting must include the person bankruptcy and the section seven trustee. It is optional for lenders or […]
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Definition of 3-2-1 Buydown 3-2-1 Buydown is a type of mortgage with a series of three initial temporary-start prices of attention that surge in a stair-step fashion until a permanent attention prices are reached. Brief Explanation of 3-2-1 Buydown Lenders will charge for the short-term attention amount discount prices. A 3-2-1 buydown is sometimes used as a […]
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Definition of 3/27 Adjustable-Rate Mortgage – 3/27 ARM A type of 3/27 Adjustable-Rate Mortgage – 3/27 ARM frequently offered to subprime debtors. These loans are designed as short-term financing vehicles that give debtors time to repair their credit until they are able to re-finance into a home loan with more favorable terms. Brief Explanation of 3/27 Adjustable-Rate Mortgage […]
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Definition of 28/36 Rule The 28/36 Rule is the rule-of-thumb for calculating the amount of debts that can be taken on by a personal or family. Brief Explanation of 28/36 Rule This Rule states that kids should invest a highest possible of 28% of its gross per month earnings on complete real estate costs and […]
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Definition of 2-1 Buydown 2-1 Buydown is a kind of mortgage with a set of two preliminary temporary-start attention levels that increase in stair-step fashion until a permanent attention rates are reached. Brief Explanation of 2-1 Buydown The preliminary attention amount reductions are either compensated for by the client in order to help them qualify for […]
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