Gnomenclature

Tight monetary policy makes it more difficult to borrow money. Tight policy is primarily associated with the Fed’s raising interest rates. This can hamper economic growth by making it more expensive to borrow money, but doing so can help calm excessive speculation and inflation.

A traditional IRA is a type of tax-advantaged retirement plan which individuals set up on their own behalf. Contributions to traditional IRAs are subject to annual limits and are tax-deductible. Money in a traditional IRA is subject to income tax upon withdrawal. In addition, money withdrawn prior to the IRA owner reaching age 59½ may be subject to a 10% penalty.

Trusts can be used as an estate-planning tool. They provide a legal structure for transferring assets to individuals or charitable organizations. That legal structure can allow you to dictate specific conditions for how the assets are to be handled, and it can also reduce estate taxes.

Tuition is a major part of educational costs, but not the only one. Tuition is the charge for academic instruction (i.e., classes, having tests and other work reviewed and graded, receiving credit for academic progress, etc.) It does not include other important costs such as room and board and the price of books and supplies.