The Basics
Securities representing ownership in a corporation.
What is a stock?
This historical figure is quoted as saying “An investment in knowledge pays the best return.”
Who is Benjamin Franklin?
Total Assets - Total Liabilities =
What is net worth?
A self-directed retirement account.
What is an individual retirement account, IRA?
This investment management group founder said “Don’t look for a needle in a haystack.Buy the haystack.”
Who is John Bogle?
December 31st Account Balance / Life Expectancy Factor Based on Age =
What is required minimum distribution?
This aspect of investing is directly correlated with return potential.
What is risk?
This world famous investor has many quotes including “Be fearful when others are greedy. Be greedy when others are fearful.”
Who is Warren Buffet?
The sum total of the original purchase, including fees and reinvestments - principle return, no taxable distributions, and sales.
What is cost basis?
A debt security, or IOU, issued by a company, municipality, or government agency.
What is a bond?
This British-American fund manager said “The four most dangerous words in investing are: this time it’s different.”
Who is Sir John Templeton?
A measure of a funds performance that encompasses all elements of return, including dividends, capital gain distributions, and change in value.
What is total return?