Retirement Planning
A traditional retirement option for people offered by their employers
401K
something that holds value, ex. Stock, bond, real estate
Asset
a market where the prices of securities are rising.
Bull Market
The oldest stock exchange in the US.
NYSE (New York Stock Exchange)
a document in which you specify which assets go to which beneficiaries upon your death. Most often prepared by a lawyer.
Will
Individual Retirement Account, with this kind of retirement account you pay taxes on the money before you put it in, and you don’t have to pay taxes on it when you retire and withdraw the money.
Roth IRA
a certificate representing a loan of money to a company or govt bought by a consumer to be paid back after certain period of time
Bond
a market where the prices of securities are falling
Bear Market
an individual license to buy/sell securities on behalf of a client.
Broker
The ease in which an asset can be turned into cash
Liquidity
Individual Retirement Account, with this kind of retirement account you do not pay taxes on the money before you put it in, and you have to pay taxes on it when you retire and withdraw the money, The money is tax deferred.
Traditional IRA
the distribution of assets among several companies to lessen the risk in a portfolio.
Diversification
How much a stock price changes. If it changes a lot, it is more risky to invest in.
Volatility
independent agency that governs the industry and enforces the laws. Companies must register with the SEC to sell stock
SEC (Securities Exchange Commission)
How much and how fast you make on an investment.
Rate of Return
a person designated as the recipient of a will or life insurance policy.
Beneficiary
Stock and bonds from different companies grouped together, little pieces of several companies. These are good low risk, long-term investments.
Mutual Fund
an index of 500 stocks, selected by economists a preferred index for US stocks. A way of measuring performance of a industry.
S&P 500 (index)
collection of investments held by a person or company.
Portfolio
another term for stock or equities
Securities
This type of life insurance lasts your whole life and builds up an increasing cash value of the money your family will receive when you die
Whole Life Insurance
The amount by which an asset’s selling price exceeds its initial purchase price, not realized until it is sold. Taxable income.
Capital Gains
A loss in value of stock at the time of sale.
Capital Loss
This is a short term low risk investment. It is money loaned to the government. It is a bill sold to you for less than it will be worth when you cash it in.
T-Bill (Treasury Bill)
A type of bank account that requires a large minimum balance, you can usually write up to 3 checks from it each year, earns a higher interest rate than other accounts.
Money Market Account