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Your pre-tax 401(k) contributions are deducted from your gross pay before Federal income taxes are withheld. You do not pay federal taxes on this money until you withdraw it from your 401(k) account. You are required to pay Social Security tax on all 401(k) contributions. For state income tax, most states exempt 401(k) contributions from taxation. Depending on where you live your contributions may be subject to atate and or local income taxes.

The process of buying a stock share or commodity in one market and selling it in another market. A trader will engage in arbitrage when shares of the same security are trading at different prices in each market.

The Consumer Price Index is a measure of the average change over time in the prices paid by urban consumers for a fixed basket of day to day expenses including food, automobile, gas, registration, clothing, etc.

Emerging Market occurs in a country which does not have a fully developed economy. Mexico and Russia are examples. Investments in these markets are usually characterized by a high level of risk and possibility of a high return. Emerging Market stocks are stock of companies located in developing nations. Politically and economically, these countries are not considered to have reached the degree of Stability associated with developed nations. They are considered to have a lesser degree of economic sophistication.

A Employee Stock Ownership Plan (ESOP) is a qualified retirement plan in which employees receive shares of the company stock.

A Hedge fund is a very specialized, Volatile investment company mutual fund that permits the manager to use a variety of investment strategies and techniques that are normally prohibited in other types of funds.
Generally, these techniques are borrowing money, selling short and utilizing options. These funds offer extraordinary gains with extraordinary above average risk.

An Initial Public Offering (IPO) is the first sale of a corporation's stock to the investing public.

The amount of money in the economy is sometimes referred to as the M1 M2 M3 indicators. M1 is a measure of domestic money supply accounting for currency, checking account balances and traveler's checks.
M2 is a measure of domestic money supply accounting for M1 plus savings and time deposits, repurchase agreements and money market accounts.
M3 is a measure of money supply that includes M2 plus large time deposits and money market fund balances held by institutions.

The Required minimum distribution is the amount you are required to withdraw from your tax-deferred retirement savings accounts after you turn 70 and a half. You must take your first minimum distribution by April 1 of the calendar year following the year in which you turn 70 and a half. You must take your second distribution by December 31 of that same year, and subsequent distributions each year by December 31. If you do not make these withdrawals, you will have to pay a 50 percent penalty tax. There is an exception in the case of a 401(k)retirement plan if you are still working for the company sponsoring the plan, and if you own less than 5% of the company. Your distribution amount is determined by your life expectancy using an IRS-approved mortality table and the amount of money you have in your account, a interest rate and, in certain cases, the life expectancy of your beneficiary. There are several IRS-approved methods for calculating the Required minimum distribution. Speak to your local CPA about the different methods.

A Self directed 401(k) retirement plan is an investment option offered by some 401(k) plans that allows the plan participant to invest 401(k) money in mutual funds, individual stocks and or bonds that are not included in the plan.
Plans typically include a set number of mutual funds for their participants, and the window account allows individual investors more flexibility with their investment portfolio.
These accounts charge an annual maintenance fee as well as trading commissions which are known as a brokerage window account.