Money Market Fund
An open-end mutual fund that invests in highly liquid securities such as CDs and government securities, and which pays money market rates of interest. Investments in shares of money market funds are neither insured nor guaranteed by the U.S. government.

Money Purchase Plan
A plan that provides employers with less flexibility than other qualified plans but allows for higher contributions (up to 25%) by an employer to an employee's retirement account.

Municipal Bond
Bonds issued by states, counties, cities, and other political subdivisions. Interest income on municipal bonds is generally exempt from federal taxation.

Mutual Fund
A pool of securities owned collectively by a large number of investors and managed by a professional investment advisor. This pooling of securities provides individual investors with diversification and professional management of their assets. Money earned on investments is distributed to shareholders as dividends and/or capital gains.

No-Load Mutual Fund
A mutual fund that does not have a sales charge or load assessed in connection with the purchase or redemption of shares of the fund.

Non-Qualified Executive Benefit Plans
Plans which allow an employer to decide which employees receive retirement benefits and how much. They are much more flexible than Qualified Plans, since rules for contributions and nondiscrimination are not as strict but they provide less immediate tax advantages. They may provide for retirement or deferred compensation benefits or supplemental benefits beyond those from the company's qualified plans.

Option
The right to buy or sell a security, granted in exchange for an agreed-upon price. If the right is not exercised (i.e., the security is not purchased or sold) within a specific period of time, the option expires and the option holder forfeits the money paid for the option.

Optional Life Insurance
A policy that offers employees large non-medical amounts, simplified enrollment, and underwriting. The employee pays the full premium cost through payroll deduction. Owners and managers may also participate in the plan.

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