Personal Income

Personal income is the total income received by individuals or households. It includes earnings from work (wages, salaries, bonuses), returns on capital (dividends, interest),…

Personal Service Corporation

A personal service corporation (PSC) is a corporate tax classification the Internal Revenue Service (IRS) uses for companies whose principal activity is rendering personal…

Personal Lines Insurance

Personal lines insurance is the collection of insurance products individuals buy to protect themselves and their families from financial loss due to death, injury,…

Personal Guarantee

A personal guarantee is an individual’s legal promise to repay business debt if the business cannot. When an owner, partner or executive signs one,…

Personal Financial Statement

• A personal financial statement (PFS) is a snapshot of an individual’s financial position at a point in time: assets minus liabilities = net…

Personal Financial Specialist Pfs

A Personal Financial Specialist (PFS) is a credential created and administered by the American Institute of Certified Public Accountants (AICPA) for licensed certified public…

Perpetual Bond

A perpetual bond (also called a consol or “perp”) is a fixed‑income security that pays a stated coupon forever and has no maturity date.…

Permanent Life Insurance

Permanent life insurance is a class of life insurance designed to provide lifelong death-benefit protection as long as required premiums are paid. Unlike term…

Permanent Income Hypothesis

Key takeaways – The Permanent Income Hypothesis (PIH), formulated by Milton Friedman (1957), says consumers base consumption on their expected long‑run average (permanent) income…

Periodic Interest Rate

A periodic interest rate is the interest rate applied to a loan balance or investment for a single compounding period (for example, one month…