Glossary

P

Principal, Interest, Taxes, and Insurance (PITI)

PITI is an acronym for principal, interest, taxes and insurance. This combination is what makes up your annual homeownership expense. Calculating your PITI number will help you determine which house you can afford and enable your lender to see if you are a viable candidate for a mortgage loan.

Pension plan

A pension plan is a benefit plan established by either an employer or a union (or another employee organization) to help employees save for retirement. The plan, depending on the type offered, may either guarantee workers a certain income during retirement or help them defer income for retirement.

4

4
4
4
4

A

A
A

B

B

C

C
C

D

D
D

E

E
E

F

F
F
F
F

G

G

H

H

I

I
I
I

L

L

M

M
M
M
M

N

N

P

P
P

R

R
R
R
R

S

S
S
S
S
S

T

T
T
T
T

V

V

W

W

4

4
4
4
4

Recent Terms

SEP IRA
A SEP IRA — short for simplified employee pension plan — is a tax-advantaged retirement plan designed for business owners. While it can be used by businesses of any size, it’s often used by small business owners and self-employed individuals.
High earner, not yet rich (HENRY)
HENRY is an acronym for "high earner, not yet rich." It is used to describe someone who earns a high income, usually between $100,000 to $500,000, but has not saved or invested enough to be considered rich. HENRYs typically spend a large portion of their earnings on expenses and purchases.
Financial planner
A financial planner is a professional dedicated to helping you manage your money. They can assess your income, expenses, assets, and liabilities to get a holistic view of your financial health. Once they have a full understanding of your needs, they help you establish clear financial goals.