MONEY TERMINOLOGY
A simplified formula that calculates how long it'll take for an investment to double in value, based on its rate of return.
A movement devoted to financial independence and retiring early.
What is the F.I.R.E. movement?
What are "fixed expenses?"
A type of mutual fund or exchange-traded fund (ETF) with a portfolio constructed to match or track the components of a financial market index, such as the Standard & Poor's 500 Index (S&P 500).
What is an "Index Fund?"
The amount of profit or loss an investor can anticipate receiving on an investment.
What is "expected rate of return?"
Author of the book "The Simple Path to Wealth".
Who is JL Collins?
Setting up Rippling to auto-save each pay period accomplishes this behavioral best practice
What is "Paying Yourself First"?
A fee that measures how much of a fund's assets are used for administrative and other operating expenses.
What is an expense ratio?
The portion of one's budget that does not typically change from month to month
What are "Fixed Expenses?"
What is "Compound Interest?"
Someone who makes $80,000 after taxes and saves $40,000 has a saving rate of....
What is "50%?"
He was the founder and chief executive of The Vanguard Group, and is credited with creating the first index fund.
Who is "Jack Bogle?"
A type of savings account that typically pays multiple times higher than the national average of a standard savings account.
What is "A high-yield savings account?"
A rule of thumb used to determine how much a retiree should withdraw from a retirement account each year.
What is the "4% rule?"
This is the proper savings rate according to Rob
What is "as high as you feel comfortable!"
VTSAX is an acronym for what index fund?
What is the "Vanguard Total Stock Market Admiral Index (VTSAX)"
This involves periodically buying or selling assets in a portfolio to maintain an original or desired level of asset allocation or risk.
What is "Rebalancing?"
What is the "Heroes Journey"?
More powerful than increasing your income, this strategy increases the amount of money you have left over to save each month AND it permanently decreases the amount you’ll need every month for the rest of your life.
What is a "increased savings rate"?
The expense ratio threshold the Money Academy students want to stay under.
What is "0.25%"