Vocabulary
This term describes the total value of an individual's assets minus their liabilities.
What is Net Worth?
An individual you partner with throughout life to accomplish goals that are prioritized based on what is most important to you.
What is a Financial Advisor?
There are four main types of life insurance to help protect your those you care about most. Name two of the four types.
What is...?
-Term Insurance
-Whole/Permanent Life Insurance
-Universal Life Insurance
-Employer Sponsored Life Insurance
This is a security that reflects proportionate ownership in a company, and is sold by the issuing corporation.
What is a stock?
This minimum amount you must take out of your retirement account after a certain age to avoid a tax penalty.
What is a Required Minimum Distribution?
This financial term refers to spreading out investments to reduce risk.
What is Diversification?
These two types of individual retirement accounts are owned by an individual and can be opened separately from an employer-sponsored plan.
What is Traditional IRA and Roth IRA?
This legal document allows one person to act on behalf of another in financial or legal matters if they become incapacitated.
What is a Power of Attorney?
A fixed-income instrument and investment product where individuals lend money to a government or company at a certain interest rate for an amount of time.
What is a bond?
This legal entity can hold assets on behalf of a beneficiary and help ensure privacy, improve efficiency, and reduce expenses associated with probate.
What is a trust?
This term refers to the practice of adjusting the asset mix in a portfolio as market conditions change to maintain a desired level of risk and return.
What is Rebalancing?
This workplace retirement plan helps businesses with less than 100 employees save for retirement and employers can match contributions to improve employee retention.
What is a SIMPLE IRA(Savings Incentive Match Plan for Employees)?
This type of insurance policy provides income in the event that a policyholder is unable to work due to injury.
What is Disability Insurance?
This is a investment vehicle that pools money from many investors to purchase a portfolio of securities and offers professional management.
What is a Mutual Fund?
This type of tax applies to the profit from the sale of an asset and is classified as short-term or long-term based on the holding period.
What is Capital Gains Tax?
This type of account allows individuals to save for medical expenses on a pre-tax basis, available with a high-deductible health plan.
What is a Health Savings Account (HSA)?
This is a cost effective workplace retirement plan for sole proprietors who are looking for a way to save for retirement.
What is a Simplified Employee Pension (SEP) IRA?
If you prioritize stability and predictability and want to guarantee your initial investment while protecting against the risk you will outlive your money by providing a optional guaranteed income stream.
What is Fixed Annuity?
This is a passive investment vehicle on the stock exchange that pools money from many investors to purchase a portfolio of securities.
What is a Exchange-Traded-Fund (ETF's)?
A distribution from a individual retirement account to a qualified charity. When completed successfully no sooner than age 70 1/2 the donation is tax free
What is a Qualified Charitable Donation?
This type of account enables savings for education expenses and also provides tax deferred growth and additional tax savings if used for qualified expenses
What is a 529 Account?
Many variables comprehend a strong financial plan. Software used by a financial advisor allows us to simulate 1000 different market scenarios and analyze likelihood of success
What is Probability Analysis?
This act of Congress protects stocks, bonds, Treasury securities, certificates of deposit, mutual funds, money market mutual funds and certain other investments as "securities" when financial institutions fail.
What is Securities Investor Protection Corporation (SPIC) Coverage.
The cost of owning a mutual fund or a exchange traded fund.
What is an expense ratio?
This term refers to the tax strategy of converting a Traditional IRA to a Roth IRA, resulting in taxable income.
What is a Roth Conversion?