Building Wealth
Being able to afford what you want but needing a job to do so
What is Rich?
A piece of ownership in a company in the form of a share
What is a stock?
These types of stocks are considered to have the potential to outperform the overall market over time because of their future potential
What are growth stocks?
An investment vehicle that lets you pool your money with other investors to buy stocks, bonds and other investments
What is a mutual fund?
The federal government most recently bailed out the US banking system during this event
What is the 2008 financial crisis?
Being able to afford what you want but needing a job to do so
What is Wealth?
A debt security with a contract to pay the principal amount at maturity
What is a bond?
These types of stocks are classified as companies that are currently trading below what they are really worth and can thus provide a superior return.
What are value stocks?
The practice of spreading your investments around so that your exposure to any one type of asset is limited
What is diversification?
The bitcoin blockchain was made public during this year
What is 2009?
Going over expenses and income to understand the best way to allocate funds
What is budgeting?
The level of willingness to lose money you’ve investment
What is risk tolerance?
These types of stocks pay regular and predictable dividends with the purpose of generating a steady stream of dividen flows
What are income (or yield) stocks?
This type of money management requires a professional money manager or team to regularly make buy, hold and sell decisions
What is active management?
A system in which a record of transactions, especially those made in a cryptocurrency, is maintained across computers that are linked in a peer-to-peer network
Having an income of $70,000.00 but spending $100,000.00 a year.
What is living outside of your means?
The total value of a company measured by the share price times the number of shares outstanding
What is market capitalization?
The economy of a developing nation that is becoming more engaged with global markets as it grows
What is an emerging market?
The amount of market volatility and loss you're willing to accept as an investor
What is risk tolerance?
This type of currency is not backed by a commodity and is largely based on the public's faith in the currency's issuer, which is normally that country's government or central bank
Allocating money to this after savings will help build wealth faster
What are investments?
The valuation metric that shows the share price relative to a companies profits
What is P/E (Price to Earnings) ratio?
These stocks typically belong to companies with a market capitalization of less than $300 million, with the smallest ones falling below $50 million
What are microcap stocks?
An Individual Retirement Account to which you contribute after-tax dollars. While there are no current-year tax benefits, your contributions and earnings can grow tax-free, and you can withdraw them tax-free and penalty free after age 59½
What is a Roth IRA?
A type of financial system that is peer-to-peer with no banks or government involvement