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GLOSSARY
Simplified employee pension plan
Simplified employee pension plan is a tax-advantaged retirement savings plan commonly used by small businesses and self-employed individuals. Referred to as the SEP IRA, this program has features similar to a traditional IRA. For example, contributions made are tax-deductible and earnings in the account are tax-deferred.
Single
Single is a tax filing status used by unmarried individuals who don't meet the requirements for any other filing status.
Single agency
When the agent or broker represents and owes his or her fiduciary to only one party in a real-estate transaction.
Single-payment loan
A single-payment loan features no periodic principal payments. Instead, the entire amount borrowed is due at maturity.
Sinking fund/reserves
Sinking fund/reserves is an account where a debt issuer makes periodic deposits that will eventually be used to settle a large, long-term debt. A bond issuer, for example, might use a sinking fund to ease the repayment burden at bond maturity. The existence of the sinking fund is attractive to investors, because it lowers the risk associated with the security.
Skimming
Skimming is a fraudulent practice of using a small device to scan the magnetic strip on a credit card, and record its information. Skimming is also a new product pricing strategy that involves setting a high price to attract a luxury-oriented customer. As the product matures in the marketplace, the price is usually lowered gradually to increase sales volume.
Skip payment mortgage
A feature in some mortgages where the borrower can choose not to make the payment in a given month. The borrower would not be considered late or delinquent, but would incur higher interest charges as a result.
SLMA
SLMA stands for Student Loan Marketing Association. This entity is now known as Sallie Mae, and is the leading provider of student loans in the U.S.
Smart cards
Smart cards is a generic term referring to plastic, wallet-sized cards that hold data via a magnetic strip on the back. Smart cards can be designed to function as credit cards, identification cards, access cards, etc.
SMI
SMI is supplemental medical insurance, also known as Medicare Part B. SMI is voluntary coverage that pays for certain medically necessary or prescribed, preventative benefits; the insured must pay a monthly premium.
Smishing
Smishing is similar to phishing, only the practice uses SMS messages sent to cell phones rather than emails. The scam involves SMS messages that direct recipients to a website that either collects personal information (such as credit card numbers), or installs malware on the recipients' phones.
Snowball
Snowball is a debt pay-off technique involving pay-down of the highest-rate debt first. The borrower makes minimum payments on all accounts, except for the one with the highest rate. To the highest-rate account, the borrower pays as much as he can afford. Once this account is paid off, the borrower focuses on the highest-rate account of those remaining. This process is repeated until all accounts are paid down.
Social security number
The eight digit number every US citizen is given at their birth. It is possible for a non-citizen who is a permanent resident to obtain a number. This number is used for identification, applying for loans, and for disbursement of social security monies upon retirement. It is recommended the one memorizes this number and is cautious when making it available to prevent identity theft.
Soft inquiry
A designation a person's credit report that indicates that someone has asked for a copy of his or her report. They are not included in the formula for determining a person's credit score.
Soft loan
Soft loan is a debt that carries a below-market interest rate. Soft loans are only made under special circumstances, such as between family members, or by an established government for the purposes of funding a developing country.