The reward received from investing
What is a return?
An investment that pays rents to a landlord
What is real estate?
A personal retirement savings account
What is an IRA
When no tax is owed
What is Tax Exempt?
The amount of uncertainty a person is willing to handle
What is risk tolerance?
Shares of ownership in a company
What is stock?
A retirement account that you get through work.
What is a 401(k)?
This account has all of its profits tax exempt
What is a Roth IRA?
The spreading of risk by putting money in different investments
Lending money to a government or corporation
What is a bond?
Contributions to this account are made with after tax dollars.
What is a Roth IRA/Roth 401(k)?
When taxes are due at a later date
What is tax deferred?
Gold, Oil, and Crops are called this.
What are Commodities?
How easily the investment can be turned into cash
What is liquidity?
A low cost mutual fund that mimics the performance of the entire market.
What is an index fund?
This account will not change even if you switch jobs.
What is an IRA?
Items that lower your taxable income
What is tax deductible?
The relationship that says the higher the chance of loss the higher the profit.
What is Risk vs. Return?

What is ROI?
A stock index based on the stock prices of 500 corporations
What is the S&P 500?
Your employer may match your contributions to this account
What is a 401(k)?
This fund has low fees and has no manager
What is an index fund?
Investing in high risk ventures in hopes of making a quick profit.
What is Speculating?
A portion of company profits paid to shareholders
What is a dividend?
What is a brokerage firm?
The age you may withdraw money from your IRA without penalty
What is 59 1/2?
This fund has higher fees because it is actively managed.
What is a mutual fund?
This plan uses dividend payments to automatically buy more shares.
What is a Dividend Reinvestment Plan (DRIP)?