Investing 101
A person who allocates capital with the expectation of a future financial return.
What is an investor?
Taxable gain or loss from an investment held less than one year.
What is short term gain/loss?
A fiduciary structure used to protect assets from creditors, predators, divorced spouses and ambulance chasers.
What is a trust?
This document helps to ensure that property is passed according to an individual's wishes upon death.
What is a will?
This statement captures the amount of an individual’s total assets less total liabilities.
What is the statement of net worth?
Examples include stocks, bonds, and hedge funds.
What are asset classes?
The name for the tax on assets held for more than one year.
What is capital gains/losses?
These provisions are fairly common in many trust structures and cover Health, Education, Maintenance & Support.
What is a H.E.M.S. clause?
You designate this person to make decisions on your behalf in the event you become incapacitated.
What is your durable power of attorney?
The statement that shows how money flows in and out of an individual’s holding over a set period of time.
What is a cashflow statement?
An investors choice may be to put a portion of their money in the stock market and another portion in bonds.
What is asset allocation?
The highest tax bracket for those with income above $600,000+ per year.
What is 37%?
This individual is the person for whom a trust is established.
Who is a beneficiary?
This individual is named to take over for you if you pre-decease your child.
What is your guardian?
This report shows the net gain or loss on an investment.
What is an income statement?
The possibility of loss, fraud, a bad choice, lack of information, downturn in the economy, or world financial crisis are all examples of this.
What is investment risk?
April 15th is an important tax date.
What is the deadline to file your taxes unless you file an extension?
This trust is intended to perpetuate wealth/ownership interests for generations to come.
What is a dynasty trust?
This individual is name by you to handle your estate after your death.
What is your executor?
This is a comprehensive evaluation of an individual’s current and future financial state by using currently known variables to predict future cash flows, asset values and withdrawal plans.
What is a financial plan?
This is your total gain or loss after all fees have been deducted.
What is net return?
October 15th is also an important tax date.
What is the 6 month extended deadline to file your personal tax return?
This common type of trust is used in asset protection, estate planning and cannot be modified without special powers.
What is an irrevocable trust?
Typically outside of your will, individuals are named to receive assets from 401ks, IRAs, and pensions.
What is beneficial designation?
This is the portion of the balance sheet that represents the capital received from investors in exchange for stock, donated capital, and retained earnings.
What is stock holders equity?