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Tax-Deferred Investment - An investment whose income and/or capital gains are not taxed until they are removed from the investment. Examples of tax-deferred investments include annuities and the cash value of life insurance. Tax-deferral can also be accomplished through the use of IRAs and corporate retirement plans such as 401(k)s.

Tax Shelter - In general, any means used to provide favorable tax treatment for all or part of an individual's or corporation's income. More usually, "tax shelter" is an investment device that generates tax deductions larger than the income from the investment.

Taxable Income - The amount used in the calculation of an individual's income tax liability. It is equal to one's income after certain adjustments have been made and standardized or itemized deductions and personal exemptions have been deducted.

Tender Offer - An offer to purchase all or a substantial portion of a corporation's shares in order to obtain control of the company. Also, a corporation's offer to buy back its own shares.

30-Day Treasury Bill - A U.S. government security that matures 30 days after it is issued. They are sold at weekly auctions at a discount and are redeemed at face value.

Time Horizon - The length of time a sum of money is expected to be invested.

Treasury Bills - U.S. government securities that mature (are redeemed) sooner than one year after issue. They are sold at weekly auctions at a discount and are redeemed at face value.

Treasury Bonds - U.S. government securities with a maturity longer than seven years.

Treasury Notes - U.S. government securities that mature between one and seven years after issue.

Trust - A legal arrangement that one party (the grantor or settlor) uses to transfer assets to a second party (the trustee). The assets are held and invested for the benefit of one or more third parties (the beneficiaries). See living trust and revocable trust.

Trustee - The institution or individual that is named to hold, manage, and distribute a trust's assets.