Investing 101
Only an intellect could remember this mnemonic for investment planning goals
What is S.M.A.R.T.?
This type of investment can be either open- or close-ended
What is a mutual fund?
If your equilibrium feels off, it may be time to do this to your portfolio
What is rebalance?
Broker-Dealers are held to this standard
What is the Suitability Standard?
This trading platform has received hate from plaudits of the investing community, but garnered fame for its zero trading fees
What is Robinhood?
This type of investment shares the same name as Agent 007
What is a bond?
This type of market capitalization designation is for companies with $10 billion or more in total equity market value
What is Large Cap?
This model is often used to determine what portion of your portfolio should be dedicated to specific categories based upon your time horizon and risk tolerance
What is Strategic Asset Allocation
CPA’s have this type of duty to their clients
What is a fiduciary duty?
This is the market where stocks and bonds are traded after initially being issued
What is secondary market?
Also the last name of a MAC professor, this U.S. index holds 30 of the market’s top stocks
What is the Dow Jones Industrial Average?
This investment type may hold a portfolio of real estate, short-term construction loans, and mortgages
What is a REIT?
A person with a crystal ball would use this type of strategy to investing
What is market timing?
This phase in the investment planning process is responsible for the tracking and communicating of a client’s progress towards their goals
What is the monitoring phase?
Taxes and these cut into the return on your portfolio
What are fees?
If you’re on the clock, don’t take too long coming up with this investment constraint
What is a time horizon?
This type of higher risk fund typically is associated with higher fees
What are actively managed funds?
A passive management investment strategy by which a fixed dollar amount is invested into an investment at predetermined intervals
What is dollar-cost averaging?
Along with Time Horizon and Human Capital Risks, this is the last main constraint of investing for clients
What is Liquidity?
Within limits this strategy may allow investments to be purchased on credit and set up with the brokerage firm as the nominal owner and the investor as the beneficial owner
What is a margin account?
Often referred to as stocks and bonds, these are much more broadly defined
What is securities?
A roadside assistance company and high-quality investment grade for bonds share this title
What is AAA?
This type of investment option can potentially be tied to unlimited losses
What is short sales?
This document lists a client’s investment goals and objectives, along with the strategies to meet those goals
What is an Investment Policy Statement? (IPS)?
An investment strategy that has a portfolio of bonds with staggered maturity dates
What is a Bond Ladder?