Page 118 - The Informed Fed--Hearn (edited 10.29.20)

Brokerage window: Brokerage window is a designated brokerage
account offered as an investment option in a 401(k) plan. Through a
window, a plan participant is able to buy and sell individual securities and
other investments. While the percentage of plans offering brokerage
windows is increasing, opinion is divided on the wisdom of giving
participants so wide a choice.

Bull Market: A prolonged increase in overall stock prices usually
occurring over a period of months or even years.

Capital Gains Tax: Capital gains tax may be due when you sell taxable
investments for more than you paid to buy them. The tax on long-term
gains, which applies to the sale of investments you’ve owned more than
a year, is calculated at a maximum rate of 20% and may be as low as 0%.

Capital preservation: Capital preservation is an investment strategy
designed to protect the assets you have. In most cases, you choose
insured investments or other products that pose little or no risk to the
principal. However, in using this strategy you do expose yourself to
inflation risk since you’re likely to realize only a marginal increase in the
value of your portfolio.

Cash Value: Permanent life insurance policies provide both a death
benefit and an investment component called a cash value. The cash value
earns interest and often appreciates. The policyholder may accumulate
significant cash value over the years and, in some circumstances,
“borrow” the appreciated funds without paying taxes on the borrowed
gains. As long as the policy stays in force, the borrowed funds do not
need to be repaid, but interest may be charged to your cash value
account.

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