Index Fund
A mutual fund in which its portfolio seeks to follow a specific index such as the S&P 500.

Interest Rate
The cost of borrowing money. Usually expressed annually, it is quoted on treasury bills and notes, bonds, credit cards, and loans.

Individual Retirement Accounts (IRAs)
Tax-advantaged personal savings and investment accounts. Assets in these accounts can be used for retirement and, subject to specific conditions, for other financial goals. There are three basic types of IRAs:

Traditional IRA
Traditional IRAs are personal accounts of up to $2,000 per year that working people and their spouses can establish on a tax-deferred basis, for the purpose of saving and investing for retirement.

Roth IRA
Like the traditional IRA, Roth IRAs allow up to $2,000 in contributions per year. Unlike the traditional IRA, however, Roth IRA contributions are not tax deductible, but earnings and distributions can be tax-free for specified purposes and subject to restrictions at the time of withdrawal.

Rollover IRA
Rollover IRAs are Traditional IRAs that hold money transferred from another qualified plan. Assets held in a rollover account classified as a conduit IRA may be subsequently transferred into another 401(K) or similar plan.

Key Employee Insurance
Life or disability insurance purchased by a business on the life of an employee whose continued participation in the business is necessary to the firm's success and whose death or disability would cause financial loss to the company.

Life Insurance
A contract (policy) under which one pays premiums to an insurance company, which pays a death benefit to the insured's beneficiaries upon the insured's death. Term insurance provides a death benefit only for a specified period; permanent life insurance accumulates a tax-deferred cash values which may, in certain policies, be paid in addition to the face amount.

Load
Sales charge paid in connection with the purchase of shares in a mutual fund or variable life insurance policy. A front-end load is charged when the fund or policy is purchased, and a back-end load is charged when the fund or policy is redeemed, or money is withdrawn.