Investing
A formal request from the customer to an insurance company asking for a payment based on the terms of the insurance policy.
What is Investment?
A monthly document prepared by your financial institution which shows all of the transactions related to your account.
What is Balance?
An individual retirement account that allows a person to set aside pre-tax income up to a specified amount each year.
What is Traditional IRA?
Something, typically money, that you owe to a person or a business.
What is Debt?
A monthly document prepared by your financial institution which shows all of the transactions related to your account.
What is Bank Statement?
A share of the value of a company, which can be bought, sold, or traded as an investment and which gives the investor small partial ownership of the company.
What is Stock?
A sum of money deposited into an account.
What is Credit?
A certain amount of money that must be kept in an account as required by that particular financial institution.
What is Minimum Balance?
A measurement of your assets minus your liabilities; also called wealth.
What is Net Worth?
The government agency that insures customer deposits if a bank fails up to $250,000 per individual depositor.
What is FDIC?
A low-fee portfolio of stocks chosen to track or mimic a stock market index.
What is Index Fund?
A written, dated, and signed order to the bank that tells it to pay a definite sum of money to a payee.
What is Check?
A certificate that allows the stated payee to receive cash on-demand.
What is Money Order?
A three-digit number (ranging from 300-850) based on an individual's credit history detailed in a credit report.
What is Credit Score?
An agreement where you are credited with a fixed amount of money for a fixed period of time, usually with interest.
What is Loan?
A retirement account, offered in some job sectors or companies, that an employer maintains to give an employee a fixed payout at retirement.
What is Pension?
A popular savings rule of thumb in which 50% of your income goes towards necessities, 20% goes towards saving and debt repayment, and 30% goes towards flexible spending.
What is 50-20-30 Rule?
A type of savings account that may allow debit card and check writing privileges.
What is Money Market?
The rate charged for borrowing money usually expressed as a percent of the amount borrowed.
What is Interest Rate?
A formal request from the customer to an insurance company asking for a payment based on the terms of the insurance policy.
What is Claim?
The practice of investing in a large variety of stocks, bonds, and/or funds as a way to reduce your overall risk.
What is Diversification?
Protects the deposits of customers against loss up to $250,000 per account.
What is FDIC Insurance?
An individual retirement account that allows a person to set aside after-tax income up to a specified amount each year.
What is Roth IRA.
The most commonly used credit score
What is FICO Score?
The difference between goals & emergencies and goals & retirement.
What is Short Term vs. Long Term?