The amount credited to a bond or other fixed-income security between the last payment and when the security is sold, or any intermediate date. The buyer usually pays the seller the security's price plus the accrued interest.

In a 401(k) plan, this is the result of the average of ratios of combined contributions to compensation for both highly compensated and non-highly compensated employees. Each employee's ratio is calculated and then averaged for the group.

This is the proportion of a plan participant's compensation that is contributed to a 401(k) plan as an employee elective deferral.

A contract by which an insurance company agrees to make regular payments to someone for life or for a fixed period.

Increase in the value of an investment over time.

The price a seller is willing to accept for the security; also called the offer price. This price is usually higher than the Bid price.

Dividing your investment portfolio among the major asset categories. The most important decision you will make.

A common trust fund or mutual fund that spreads its portfolio among a wide variety of investments, including domestic and foreign stocks and bonds, government securities, and real estate stocks. This gives small investors far more diversification than they could get allocating money on their own. Some of these funds keep the proportions allocated between different sectors relatively constant, while others alter the mix as market conditions change.

A resource that has economic value to its owner. Examples of an asset are cash, accounts receivable, inventory, real estate, and securities.

The practice of enrolling all eligible employees in a plan and beginning participant deferrals without requiring the employees to submit a request to participate. Plan design specifies how these automatic deferrals will be invested. Employees who do not want to make deferrals to the plan must actively file a request to be excluded from the plan. Participants can generally change the amount of pay that is deferred and how it is invested.