Ideal Financial

401(k)
A retirement account to which an eligible employee can contribute a certain amount of his or her pre-tax salary; earnings are tax-deferred. Some employers may match a stated percentage of employee 401(k) contributions. The reduced cost and liability of 401(k) plans appeal to employers.

403(b)
A qualified retirement plan similar to the 401(k), available to employees of nonprofit and government organizations.

Adjusted Gross Income (AGI)
The amount of income subject to federal income taxes. To determine AGI, subtract deductions (e.g., business expenses or IRA contributions) from gross income (employment income, interest income, dividends, and capital gains).

Aggressive Growth Fund
A mutual fund designed to maximize long-term capital growth, rather than dividend income, by investing in narrow market segments, small company stocks, and companies with high growth rates.

Annual Percentage Rate (APR)
The yearly cost of credit or a loan, expressed as a simple percentage. All consumer credit agreements and loans are legally required to disclose the APR.

Annual Report
A yearly statement that describes company management, operations, and financial information. The Securities and Exchange Commission (SEC) requires all corporations issuing registered stock to publish annual reports, which are sent to shareholders and also made available for public review.