Wealth
Wealth can be described as…
The ability to live well based on your assets
Equity represents…
Ownership in a company
Debt represents…
A loan or borrowing (or lending from the perspective of an investor)
Real estate is similar to equities and bonds as value is a function of…
Free cash flows
Attributes of money are:
Commonly accepted and trusted as a means to pay for things, measures the value of things, store value over time
Most business owners are at this age when they start their companies
Over 40
Returns from equities are derived from…
Dividends and growth in the value of the stock (or capital appreciation)
Bonds are often labeled fixed income because…
The contract terms such as: principal, maturity, coupon rate are defined by contract
Factors that drive real estate prices…
Inventory or demand/supply, interest rates, broad sentiment of the economy
Money is both physical and…
Digital
Small businesses account for over ____ of all businesses in the US and employ over ____
Over 99% of all businesses in the US and employ over 50 million people
Companies issue equity for reasons such as…
Any of these are correct: to fund growth (launch new products, expand business) to pay down debt, to acquire other companies
Bonds are issued by:
Companies and the government (Federal, State, and municipalities, as well as foreign governments)
A higher interest rate level in the economy leads to a….. monthly mortgage payment
Higher or increased
The country that made Bitcoin Legal tender in 2021
El Salvador
Wealthy individuals are not dependent on a job and are focused on…
Growing and managing assets and managing multiple streams of income
A company is worth:
The earnings you expect to receive from it over time
Debt investors receive ____ on an ongoing basis and the ____ at maturity
Interest/coupons on an ongoing basis and the return of principal at maturity
These three costs make up the cash outlay for a property…
Down payment, closing fees, and repairs
A key attribute of cryptocurrency as compared to traditional money that is issued by the Treasury and regulated by the Federal Reserve is:
It is a decentralized system (no banks/government involved) and it is peer-to-peer
The 8 possible paths to wealth are:
Stocks, bonds, crypto, real estate, talent, education, owning a business, and earning a high salary
Two broad styles that are used to describe stock or a companies characteristics are:
Growth equities or value equities
In the event of bankruptcy of a company, ____ get paid out first before any residual value, if any, is paid to the ____
Bond holders get paid out first before any residual value, if any, is paid to the equity holders
Growth in housing stock is encouraged by the government by allowing mortgage interest paid to be ____ in taxation
Deducted against income
Post the 2024 presidential election, bitcoin rallied to almost…
$100K