Types of Accounts
A savings account you can access quickly to pay for unexpected expenses or emergencies
Emergency Fund
What you get when a company pays out some of their profits to you as a shareholder
Dividends
The US Corporation insuring deposits (up to $250,000) in the United States from bank failure.
Federal Deposit Insurance Corporation FDIC
A Certificate that defines your ownership of a piece of a corporation
Stock or Stock Certificate
An Employer Sponsored Plan that lets you invest Tax Deferred for the long term
401(k) or 403(b) or 457(b)
What you get when you sell the stock in a company that has become more valuable since you purchased it
Capital Gains
An Investment guaranteed by a corporation to pay out a certain amount of money every month to the day you die.
Fixed or Indexed Annuity
An index that tracks 30 of the largest companies in the United States
Dow 30
Account anyone with earned income can open that gives a tax break now & lets the $ grow tax deferred
IRA
When a company you have stock in has become more valuable but you haven't sold the stock yet
Unrealized Capital Gains
In a fixed, guaranteed investment, what must an investor typically agree to in return for higher yields
Longer Terms
An Index that tracks 500 of the largest US Companies (representing 80% of the entire stock market)
S&P 500
An Account anyone with earned income can open that MAY let the $ grow tax FREE
ROTH
Typically, in a freely traded stock market, what must an investor accept or increase to have a chance at earning higher returns
Risk
Is the cash value shown by a life insurance agent's projected illustration of performance guaranteed?
NO
You've lent money to a corporation
Corporate Bond
An account with no limits on investing, no limits on withdrawals and gains are taxed every year
Voluntary or Non-Qualified Account
The area of study that examines why most investors underperform the markets by 3 to 7%
Behavioral Finance
Some of the protections you can get from an insurance company on your money without giving up control of your money
Guaranteed death benefit, Elimination of losses, Reduction of market losses, Guaranteed Income, Guaranteed Estate, etc.
You've lent money to a government agency
US Treasury Bond, Municipal Bond, etc.