Investments that are typically riskier over the short term, but might offer greater returns over the long term.
The Dell 401(k) Plan offers the following asset classes: Money Market, Bond, Real Asset, Balanced, Large U.S. Equity, International, Small/Mid-Cap Equity, Emerging Markets and Dell Stock. Pre-Mixed Portfolios are in a separate asset class in the Dell 401(k) Plan and each one is fully diversified.
How you divide (or diversify) your money among different types of investment choices (or asset classes). If you choose a Pre-Mixed Portfolio, it already includes a fully diversified asset allocation.
A market condition in which the prices of securities are falling and widespread pessimism causes the negative sentiment to be self-sustaining.
BMI (body mass index):
Body mass index (BMI) is a number calculated from a person's weight and height. BMI is a reliable indicator of body fatness for most people. It can help identify possible weight problems that can lead to health issues or chronic conditions.
A newer, more expensive prescription medication for which there is an active patent (a time-sensitive right to market a drug under a certain name).
An additional amount (on top of the annual IRS 401(k) limits on pretax contributions) deducted from your paycheck and invested in the Dell 401(k) Plan by participants who are or will be age 50 or over at the end of the current calendar year.
The percentages of the total health care bill that you and the plan pay. For example, if the plan pays 80 percent coinsurance for a covered service, you pay the remaining 20 percent.
Earning additional interest. Once you earn your first interest payment, it is added into the principal. It allows your money to earn even more money over time. By saving more and saving sooner, you better enable the power of compound interest to work for you.
Investments meant to minimize risk over the short term and that historically have lower returns over the long term.
Designated amount deducted from your paycheck and used to:
- Pay for your health care coverage (medical, dental, vision, employed spouse contribution, Flexible Spending Accounts, etc.)
- Pay for supplemental life insurance coverage, if elected
- Invest in the Dell 401(k) Plan.
A flat dollar amount you pay for certain services in Dell's benefit plans. Copays typically do not count toward the plan's annual deductible, but they do count toward the out-of-pocket maximum.
The funds in the Dell 401(k) Plan from which you can choose to create your own diversified investment portfolio. The Core Funds represent several different asset classes versus the Pre-Mixed Portfolio funds, which each are designed to be a fully diversified mix of the Core Funds. Advice on how to diversify your money across the core funds is available through the Financial Engines® Online Advice service, accessed through the Fidelity NetBenefits website (@ Work | Log in).
The medical plan that provides a prepackaged level of benefits, out-of-pocket costs and available doctors, hospitals and health care facilities. The core plan varies based on where you live.
A health-care-related treatment or procedure for which your health-care-related plan helps you pay the expenses.
The amount you pay each year out of your own pocket before your plan begins paying part of your health care bills. Generally, on the PPO plan you don't have to pay a deductible for in-network office visits and other services covered by an office visit copay.
The process of spreading your savings across more than one type of investment (asset class) to protect against the volatility that can result from putting your entire savings in one type of investment. If you choose a Pre-Mixed Portfolio, it already includes a diversified mix of investments. If you choose to invest in Core Funds, you need to create your own diversified mix of funds or get help through the Financial Engines® Online Advice service accessed through the Fidelity NetBenefits website (@ Work | Log in).
Dollar cost averaging:
The technique of buying a fixed dollar amount of a particular investment on a regular schedule, regardless of the share price. More shares are purchased when prices are low, and fewer shares are bought when prices are high.
Employed spouse contribution:
An additional cost you pay out of your paycheck if your spouse or domestic partner is eligible for medical coverage through his or her employer, but you choose to cover him or her in a Dell medical plan.
Evidence of insurability (EOI):
A statement of your medical history, or in some cases a medical exam, required for proof of good health. Certain supplemental life insurance and long-term disability coverage elections require you to provide EOI.
A list of drugs that a prescription drug administrator and its panel of doctors and pharmacists prefer for their proven quality and cost-effectiveness. You pay less for drugs listed on the formulary. If you're enrolled in the Health Fund or PPO 800 from either Aetna or UnitedHealthcare, only the medications listed on the Express Scripts formulary are covered.
Generic drugs are approved by the Food and Drug Administration (FDA) as having the same effectiveness, quality, safety and strength as their brand-name counterparts. However, they cost much less for you and Dell.
Health Care Flexible Spending Account:
A flexible spending arrangement which allows you to set aside before-tax money to pay yourself back for certain health care expenses. The amount you contribute is deducted from each paycheck before taxes are withheld. You must use the funds you set aside within the specified time frame each year or forfeit the balance (this is known as the "use it or lose it" rule). You can access your Health Care Flexible Spending Account on Your Spending Account through Your Benefits Resources.
Also known as a "consumer-directed" health plan, the Health Fund is one of Dell's medical plan options. In return for lower payroll contributions, you pay the full cost of non-preventive care until you satisfy your deductible. (Preventive care is covered at 100 percent.) When you enroll in the Health Fund you have access to a Health Savings Account (HSA) that you can use to help meet your deductible and pay for other out-of-pocket health care expenses — or save for future needs, even in retirement.
Health improvement programs:
The name used to describe all of the Well at Dell online or telephonic coaching programs. These include Lifestyle Improvement Programs (maintain your health), Lifestyle Coaching Programs (improve your health), and Condition Management Programs (manage your health/chronic condition).
Health Savings Account (HSA):
The HSA is a tax-free account only available to you if you enroll in the Health Fund medical plan option. You can make tax-free contributions to your HSA and in 2017 Dell will also make a contribution to your HSA just for enrolling in the plan. You can use your HSA to help pay your deductible and other out-of-pocket health care expenses for you and your qualified IRS dependents.
Specialist doctors who have been recognized for providing high-quality care and outcomes, while effectively managing costs. This designation is typically made by a panel of medical experts, according to standard national health care organization guidelines.
Home delivery (mail order) program:
A program offered by your Dell prescription drug plan that fills a 90-day prescription for long-term or maintenance medications. The convenient home delivery program offers you reduced out-of-pocket cost when you compare it to filling the same prescription at a retail pharmacy.
The possibility that the value of an asset or income will decrease as inflation shrinks the purchasing power of money.
A medication prescribed by your doctor for a 90-day supply or more. You can fill a 90-day or more prescription through the convenient home delivery (mail order) program at a lower out-of-pocket cost than filling the same prescription at a retail pharmacy.
The value of the outstanding stock of a company. For instance, if a company has 1 million shares outstanding and a stock price of $50 per share, the company's market capitalization is $50 million.
The likelihood that the value of your investment will fluctuate over time.
A medical situation that requires immediate medical attention at a hospital or other emergency facility.
A group of health care providers that offer services to participants in a health plan (like a PPO) at a negotiated, discounted cost.
What you own minus what you owe. Shows your real wealth and is a good first step in keeping track.
Office visit copay:
A flat dollar amount that you pay for an office visit to an in-network provider in the PPO 800 plan. See "primary care physician" and "specialist" definitions for more information.
The maximum amount you pay each year in deductibles and your share of coinsurance. If you reach the maximum, your plan pays 100 percent of your eligible medical bills (except copays) for the rest of the year.
Personal health record (on the Well at Dell WebMD website):
You can create a personal health record (PHR) on the WebMD site. If you opt in to the automatic claims import feature, you'll be able to see a quarterly summary of your medical and prescription claims and have a record of your outcomes and prescriptions filled. You have lifelong, "portable" access to your PHR. That means you can still access your PHR, even if you leave Dell in the future.
A collection of investments held by an individual or institution. Your 401(k) portfolio may include several different types of investments. If you choose a Pre-Mixed Portfolio, the collection (or mix) of investments in your 401(k) portfolio is preselected based on the target retirement date of the fund.
Preferred provider organization (PPO):
A PPO plan helps you pay your medical bills for covered services whether you use a doctor, hospital or other provider that is in network or out of network. That means you can use any doctor you wish and the plan pays a portion of the cost for covered services. However, if you use in-network providers, the plan pays a greater benefit and you pay less out of your own pocket for services.
The Pre-Mixed Portfolios are designed to help you achieve the right mix of investments in your 401(k) account based on when you want to start using your savings. Each portfolio is made up of a combination of several of the Core Funds currently offered in the Dell 401(k) Plan. Each Pre-Mixed Portfolio is designed to be a fully diversified investment solution. Invest in the one that's right for you based on your retirement time horizon and goals.
Prescription drug coinsurance:
All of Dell's medical plans have a coinsurance benefit for brand-name drugs. Coinsurance is the percentage of the actual cost that you pay for an approved brand-name medication (subject to a minimum and maximum required payment per medication). If you are in the Health Fund, you must first meet the deductible before the plan will pay its share of coinsurance for prescription drugs that are not on the preventive drug list.
Prescription drug copay:
A flat dollar amount that you pay for a generic prescription drug.
Money you put into your Dell 401(k) account through payroll deductions, before taxes are calculated. This money grows in your account, and you pay no taxes on it until you withdraw it.
Primary care physician (PCP):
Your PCP, for the purposes of your Dell medical coverage, may include physicians in family and general practice, including internal and pediatric medicine, and obstetrics and gynecology.
The original investment amount. In a 401(k) plan, this is typically the contributions made to your account.
Prior authorization (of prescription drugs):
Your prescribing physician may need to submit a prior authorization form to Express Scripts, Dell's prescription drug administrator, if he or she prescribes certain medications used to treat conditions for which their effectiveness is unknown or unproven. Contact Express Scripts for a list of medications requiring prior authorization.
Providers in a network include doctors, hospitals or other health care facilities, such as a physical therapy facility.
Qualified status change (QSC):
According to IRS rules, you can only change your benefits and covered dependents during the calendar year if you experience a qualified status change, such as marriage, divorce, birth or adoption of a child, moving or your dependent gaining or losing coverage in another plan. You must make applicable changes to your benefits within 31 calendar days of the event.
Change how your current account balance is invested among all the funds (that is, change your investment mix). This does not affect how money you save in the future is invested. (See "Future investments" above.)
Reasonable and customary expenses:
Reasonable and customary expenses represent the range of usual fees for comparable services which are set by the health plan and charged by the medical or dental providers in a geographic area. If your out-of-network provider charges more than the reasonable and customary fee, you are responsible for paying the difference. Any charges in excess of reasonable and customary do not apply toward your annual deductible or out-of-pocket limit. (Reasonable and customary limits do not apply for in-network coverage.)
The amount of fluctuation between investment gains and losses with which you're comfortable. Knowing your personal risk tolerance is important in establishing your long-term investment and savings strategy.
A Roth 401(k) is similar to a Roth IRA, but without the income restrictions that prohibit contributions by individuals and families at or above certain income levels. You pay taxes today on the money you contribute on a Roth 401(k) basis. When you withdraw your money for retirement, Roth 401(k) contributions and their investment earnings are tax-free as long as the money has been in your account for at least five years and you are age 59½ when you withdraw it. Company matching contributions are taxable.
S&P 500 Index:
A popular standard for measuring large-cap U.S. stock market performance. The index includes a representative sample of 500 leading companies in prominent industries.
Usually, your PCP will suggest that you see a specialist (for example, allergists, dermatologists, oncologists, cardiologists) if a particular health issue arises. The PPO 800 and the Health Fund cover specialists differently.
Biotech medications to treat a serious illness (such as cancer or rheumatoid arthritis). Administered by Accredo, a home delivery subsidiary of Express Scripts. subsidiary of Express Scripts. Note: These medications fall under a 30-day prescription fill guideline.
Stat medications are specialty medications (see above) which are required for immediate therapy (within hours) to prevent adverse health consequences.
A process by which you, your doctor and Express Scripts work together to identify the most appropriate and cost-effective drug treatment.
The period of time you have remaining before you begin withdrawing your retirement savings to serve as retirement income to you. As an individual investor, you must determine the time horizon that applies to your situation. For rules and regulations, review the 401(k) Summary Plan Description on the Fidelity NetBenefits website (@ Work | Log in).
Move a portion of your existing savings between one or more individual funds. This does not affect how money you save in the future is invested. (See "Future investments" above.)
Vesting refers to ownership in your 401(k) account. You own 100 percent of the contributions both you and Dell make to your 401(k) account.
Your Benefits Resources (YBR):
The Dell Benefits Center website. This is where you go to enroll in your benefits, make changes to your benefits in case of a qualified status change, update your beneficiaries, and make your Annual Enrollment elections.