Page 118 - The Informed Fed--Hearn Wealth Management

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
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

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,

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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