What is meant by a 51percent Attack.

A 51 Percent Attack refers to an attack on the Blockchain (most commonly these attacks are still fictitious Bitcoin) by a group of miners who control more than 50% of the network’s mining Hash-Rate or processing power. By preventing new transactions from being confirmed, an attacker can stop payments between some or all users. It … Read more

What is meant by a 5/1 Hybrid Adjustable-Rate Mortgage or 5 /1 ARM?

5/1 Hybrid Floating Rate (5/1 ARM) mortgage loan begins with an initial 5-year fixed rate term followed by an annual interest rate adjustment. Among the terms, 5 refer to the year in which the fixed interest rate is applied, and 1 refers to the frequency at which interest rates are adjusted thereafter (once a year). … Read more

What is meant by the 3-6-3 Rule?

The 3-6-3 Rule is slang for the informal practice of the banking sector in the 1950s, 1960s, and 1970s. The 3-6-3 rule describes how a banker deposit 3% interest in a depositor’s account, lends money to the depositor at 6% interest, and then plays golf at 3pm. In the 1950s, 1960s and 1970s, a large … Read more

What is meant by a 529 Plan?

529 Plan is a tax-deductible savings plan used to fund education. Originally limited to post-secondary education costs, it was expanded to include K-12 education in 2017 and apprenticeship programs in 2019. The two main types of 529 plans are savings plans and prepaid curriculum. Savings plans are tax deferred, and withdrawals are tax-free when used … Read more

What is meant by the 183-day rule.

The 183 Day Rule is used in most countries to determine whether someone should be considered a resident for tax purposes. In the United States, the Internal Revenue Service (IRS) uses 183 days as the threshold for the substantive presence test to determine whether a non-U.S. citizen or permanent resident must continue to be taxed … Read more

What is meant by the 25 percent rule.

The Term 25% Rule basically has two general uses. — According to the 25% rule, the long-term debt of a local government cannot exceed 25% of its annual budget. Debt exceeding this threshold is considered excessive and poses a potential risk as the community may struggle to repay the debt. — The 25% rule also … Read more

What is meant by 80-20 rule.

The 80-20 rule, also known as the Pareto law, is a maxim that asserts that 80% of the effect (or output) occurs in 20% of all causes (or inputs) to a given event. One goal of the 80-20 rule in business is to identify and prioritize the potentially most productive inputs. For example, once managers … Read more

What is meant by a 457 plan.

In general, 457 plans are unqualified, tax-deferred, deferred retirement plans offered by state, local and some not-for-profit employers. Eligible participants can pay in untamed, accumulative input tax money until their deferred salary contributions are withdrawn.         look at a glance — The 457 plan is an IRS-approved tax deferred retirement plan for … Read more

What is meant by a 412(i) plan.

12(i) Plan is a defined pension plan designed for small business owners in the United States. Contributions from owners that are classified as tax-eligible annuity plans can be immediately considered tax deducted from the company. Guaranteed annuities or a combination of annuity and life insurance were the only ones that could fund the 412(i) plan. … Read more

What is meant by a 408(k) Plan?

408 (k) account, commonly referred to as an Employee Simplified Pension Plan (SEP), is an employer-sponsored retirement plan. The 408 (k)-Plan is the SEP version of the popular 401 (k) plan. A SEP is intended for small businesses, for example those with less than 25 employees. The SEP-IRA only allows the employer to make contributions … Read more