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44 Cards in this Set
- Front
- Back
Depreciation
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loss in value an asset experiences over time, in cars depreciation is a function of not only mechanical wear but different designs
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Used Cars
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good financial decision, previous owner takes the loss
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New Car
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Not a good financial decision
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ADM (additional dealer markup)
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never pay this charge
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Add-ons
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Example: Rust proofing, not necessary
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Leasing a car
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most expensive option
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State of Indiana
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liability insurance is required
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one way to get rid of a car (especially when its at its point of collapse)
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donate it
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3 kinds of auto financing
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from bank (lowest)
Third party financing (most expensive) |
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dealership financing car
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normally not the best financing rates
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car lease
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from 2-4 years
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Gap insurance
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owe more on it than what it is worth
period of time where you will owe more than the car is actually worth thanks to instand depreciation, if you total the car during this time they will pay you for the value of the car, not how much you actually paid |
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umbrella policy
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kicks in after auto and homeowner insurance is exhausted
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guaranteed replacement value
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your auto or home is replaced exactly how you had it
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term-life insurance
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protection for a period of time, generally least expensive type of life insurance
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Annual renewable term
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type of life insurance that goes up in price a little each year
or 10 year level term-set amount for 10 years, then goes up |
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whole life insurance
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same protection as term life insurance, but with savings account
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guaranteed replacement insurance
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pay to replace to the same quality that it was
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Renter's Insurance
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replaces possessions, but not buildings
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Risk pool
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more people you have in your group, the lower the cost of Insurance
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Group health insurance
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costs less because of the larger pool
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Health Savings Account (HSA)
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what you use to pay for out of pocket expenses (what your insurance doesn't cover)
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Usual and Customary Fees List
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a list of fees that the insurance company says it will pay for health care services
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Captive Agent
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your state farm agent, represent 1 company
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Insurance rider
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special provision or attachment, often covers jewelry, art, or computer
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flexible life insurance
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part term, part whole life, but flexible
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tax credits
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better than tax deductions
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standard deduction
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amount allotted by the IRS for taxpayers who do not itemize deduction. It is a lump-sump deduction that comes off the taxpayer's income to lower the amount that will eventually be taxed
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Itemized deductions
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used clothing to good will, calculate individual allowable deductions
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marginal tax rate
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the tax rate you pay on the last dollar of income. It is useful in determining what additional income will mean from a tax perspective
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Enrolled agent
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5 year training, NOT the highest education level
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1040 EZ
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simplest tax form
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Tax Audit
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examination by IRS agents
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Tax Saving Strategy
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reduce your AGI (Adjusted gross income) do this through an IRA
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Tax Audit
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2 red flags that trigger tax audit:
hiding income having off shore bank accounts & too many deductions |
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One Tax withheld from paycheck
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social security tax
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Need based financial aid
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takes into account family finances
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cost of attendance
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4 factors:
tuition books room&board supplies |
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Associates Degree
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2 years
(one way to save money) |
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EFC (Expected Family Contribution)
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how much the family plans to contribute to student's college
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FAFSA
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Free Application for Student Aid
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4 types of financial aid
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grants: free money
work study money: wash dishes&use to pay tuition stafford loans scholarships |
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subsidized stafford loans
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no interest charged while in school
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unsubsidized
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interest gains while in school
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