Waiver

The intentional action of giving up one's right's and claims.

Walk away lease

A common car lease also known as a closed-end lease. The lessee may return the car at the end of the lease term, pay any end-of-lease costs, such as the disposition fee, and the lease agreement is over and not be responsible for the difference of the actual value of the car.

Walk through

A common car lease also known as a closed-end lease. The lessee may return the car at the end of the lease term, pay any end-of-lease costs, such as the disposition fee, and the lease agreement is over and not be responsible for the difference of the actual value of the car.

Wall Street Journal prime rate

The wavering interest rate as posted daily in the Wall Street Journal which is derived from several banks to arrive at its number.

Warranty deed

See quitclaim deed.

Wash sale

When shares of a fund are sold at a loss and shares of the same security are purchased within 30 days before or after. You cannot deduct losses from a wash sale.

Work study

Need-based financial aid award in which the federal government subsidizes part of the cost of a student's wages at a job usually on campus.

Workout

A mortgage in which basic terms: interest rate, term and monthly payment, have been altered to prevent a foreclosure.

Wraparound mortgage

A consolidation of balances on all mortgages into one loan.

Wage assignment

Wage assignment is a clause in some loan agreements that gives the lender the right to deduct payments from the borrower's wages if the borrower defaults. When the borrower agrees to this clause, he's essentially using his future earnings as collateral for the loan.

Warehouse lending

Warehouse lending is the practice of offering revolving credit to loan originators, who draw money to fund mortgage loans. The originator repays those funds when the mortgage is sold on the secondary market.

Warranty

A warranty is a guarantee made by a manufacturer or reseller that a product sold will perform as stated. Warranties will specify conditions under which the manufacturer or reseller will make repairs or cover the cost of necessary repairs, should the product not perform as promised.

Wealth management

Wealth management is a comprehensive planning service that incorporates all aspects of personal finance, such as tax planning, estate planning, investment planning, legal planning, etc.

Wellness program

Wealth management is a comprehensive planning service that incorporates all aspects of personal finance, such as tax planning, estate planning, investment planning, legal planning, etc.

 

White collar

White collar describes the class of employees who perform intellectual work rather than manual labor. White collar workers usually earn higher salaries, but this distinction has become less pronounced over time.

Will

A will is a legally binding document in which an individual specifies how he would like his property distributed after his death. The will can also specify a guardian for dependents and an executor for the estate.

Will variation

Will variation is the right of a decedent's spouse and children to contest the decedent's will. The spouse and/or children must make the argument that the decedent's will doesn't adequately provide for them. It's rare that contesting a will actually results in someone getting a larger share of the estate.

With approved credit - WAC

With approved credit, or WAC, is a condition placed on a sale transaction that requires the buyer to have sufficient credit. A company that leases equipment, for example, would run a credit check prior to executing to ensure that the lessee meets minimum credit requirements.

Withdrawal plan

Withdrawal plan is a service offered by some mutual fund accounts. An individual who signs up for a withdrawal plan will receive periodic income payments out of her account. Withdrawal plans are often used to create a regular stream of retirement income.

Withholding

Withholding is a method of paying taxes, where funds are automatically deducted from wages. Withheld funds are sent directly to the taxing authority, and counted as partial payment towards the individual's tax liability for that year.

Withholding allowance

Withholding allowance is a value that a taxpayer claims on the IRS W-4 Form. The allowance value, in part, determines how much money is withheld from the taxpayer's earnings. A higher allowance means a lesser withholding rate. Typically, a taxpayer can claim one allowance for herself, one for her spouse, and one for each dependent.

Withholding tax

Withholding tax is the amount of money that's taken out of an employee's wages and sent directly to a taxing authority. These withheld amounts count as partial payment toward the taxpayer's tax liability for the year. Withholding tax can also be an assessment charged against a non-resident's investment and income.

Working capital loan

Working capital loan is a short-term debt provided to a business to bridge the gap between buying or manufacturing product and actually receiving customer payments for sold product.

Workout assumption

Workout assumption is the transfer of an existing mortgage from an at-risk borrower to a qualified third-party. A workout assumption is usually only a consideration when a borrower has serious financial problems that aren't likely to be resolved. The lender must approve a workout assumption.

Worm

A worm is a malicious computer program that can replicate and distribute itself via a network. Worms can run themselves, while viruses rely on a host program.

Wraparound loan

A wraparound loan is a refinancing technique used with mortgages. A lender makes a new loan to the homeowner, and places the loan in a subordinate position to the existing first mortgage. After funding (rather than at funding), the borrower uses the proceeds from the new loan to pay off the old first mortgage.

Writ

Writ is a written, binding order issued by a judge, judicial officer or court.

WSJ prime rate

WSJ prime rate is a consensus prime rate published by the Wall Street Journal, which obtains the information via a survey of financial institutions. The prime rate is a benchmark lending rate that generally remains 3 percentage points higher than the fed funds rate.