Continuing on in our discussion of finance from A to Z, here are more words from the language of finance that I did not know and would like to share with you. A joint and survivor annuity is a type of annuity that two people open together. It makes payments for the entire lifetimes of both beneficiaries, even after one of them dies. Keogh plans are pension accounts in which taxes are deferred. This type of pension plan is available to people who are self-employed, which is great because self employed people often do not have the same type of access to things like pensions, company retirement plans, and other benefits that come along with steady employment at a regular job.
Laundering is moving illegally acquired cash through legal financial systems in such a manner that it appears to have been legally acquired. This is often accomplished through the use of a “front”, or a fake business that does not provide any actual product or service but does provide a means for depositing money in the bank and otherwise moving it. Laundering money is illegal and the penalties are high. Fortunately, it has nothing to do with the occasional passage of a dollar bill or two through the washing machine at home because I sometimes forget to check the pockets.
Mail float is the amount of time that checks for payment spend going through the postal system. Some people strategically mail their bills from certain locations and on certain days in order to get them in by the due date and not a moment sooner. I find this interesting, but I have never really analyzed how long it takes each of my payments to get where it is going. I am acutely aware of how long it takes checks to reach me, though.
Near money refers to assets that you can convert into cash quickly. Things like money market accounts and bank deposits are considered near money. Near money is always good to have, and is especially important if you have other money tied up in investment vehicles such as real estate that could take a while to convert into cash.