401(k)
  • Definition:
    A retirement investment plan that allows an employee to put a percentage of earned wages into a tax-deferred investment account selected by the employer.
  • What this means:
    If your company offers a 401(k) you will have the option to put a percentage of each paycheck into the account. Most companies will match your deposit up to a certain percentage. You can then use the money in your account to invest in the funds available by your company. Even if your company does not match your deposit it is still a great vehicle for investing because you do not pay taxes until you withdraw the money.

Stock Options

  • These give the employee the right to bu a specific number of shares of that company's stock at a specific price. The company will set the price (grant or strike price) which is usually equal to the current market value of the stock. Also, options usually have to be held for a specified time which is an incentive for the employee to continue working for the company.

Coming Soon:

  • IRA
  • Roth IRA
  • Profit Sharing
  • more
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