Investing
Owning "stuff" (stocks, bonds, international, etc) that behaves differently from one another helps to create this.
What is diversification?
A tax-advantaged way to save for (only) education, is this.
What is a 529 plan?
A bond returns money to the lender by making these payments.
What is interest or coupon?
The size of a publicly traded company is measured by this (share price x shares outstanding).
What is market capitalization?
This type of account is established for a minor, and all control of the account is automatically transferred to the minor once they reach the age of majority. It also has favorable tax treatment.
What is an UTMA (Uniform Transfer to Minor Act)?
Bonds issued by less creditworthy borrowers typically pay a _______ coupon, relative to a more creditworthy borrower.
What is higher?
Measuring the cost of a share of stock, relative to the amount of earnings the company generates is known as this.
What is the P/E ratio?
$35k of unused 529 funds can be converted into this retirement vehicle.
What is a Roth IRA?
Bonds that may make tax free coupon payments to the investor are known as these.
What are municipal bonds?
In a structured investment, a "buffer" refers to a portion of the investment being ______, from loss.
What is protected or insured?
Permanent _______, may have a cash value that can be borrowed against for education funding.
Additionally, the value does not factor into the financial aid calculation.
What is Life Insurance?
All else equal, when IRs rise, bond prices do this.
What is go down?
The efficiency of a portfolio considers the amount of risk/volatility in a portfolio, relative to its expected_____.
What is return?
Many people's largest financial asset is their home. A way to unlock a portion of that value (for education or anything else) is to borrow against the equity of the home. This type of loan is known as a _____.
What is a HELOC?
A bond's price sensitivity to a change in interest rates is know as this.
What is duration?