Planning Ahead
The average number of years spend in retirement.
What is 18?
The type of investment with the highest potential return
What is common stock?
The chance an investment will decrease in value.
What is risk?
The suggested % of income you should save for retirement each month to live comfortably.
What is 10-12%?
The method of accounting for a consolidation where the dividends received reduce the balance of the investment but no other equity adjustments are made periodically.
What is Partial Equity Method?
An investment with increased stability and the ability to earn passive income for life.
What is real estate?
Buying shares of a company's debt.
What are bonds?
The measure of a gain or loss over the money invested.
What is return on investment?
The typical % of your gross earnings that employers are willing to match toward a 401(k).
What is 3-6%?
The method of accounting for the consolidation worksheets used by a company that has a significant influence on the subsidiary.
What is the equity method?
The amount received after death from life insurance.
What is a death benefit?
A savings certificate with a fixed maturity date and fixed interest rate.
What is a Certificate of Deposit?
Obtaining different investments in a portfolio with different levels of risk and reward to minimize risk.
A savings plan sponsored by an employer.
What is a 401(k)?
Relies on the presumptive test of 20-49% ownership in a subsidiary.
What is significant influence?
Insurance that pays out a sum of money once the insured person is deceased to cover debt and other expenses.
The amount an investor can sell a security at today.
What is current market value?
Purchasing stock with the money you borrowed from the brokerage firm.
What is buying on margin?
A government-sponsored, tax-deferred, retirement plan.
What is a traditional IRA?
The share of profits distributed in cash that decrease the value of an investment under the equity method.
What are dividends?
The most widely used source of retirement income.
What is social security?
Liquid, low-risk accounts that offer a low rate of return that are insured by the FDIC.
What are savings accounts?
A loan that is borrowed against the equity you have built in a note payable you already have.
What is a HELOC?
An individual retirement account allowing individuals to set aside after-tax income for retirement.
What is a Roth IRA?
The method of accounting where the investment remains permanently on the parent's financial records at the fair value assigned at the acquisition date.
What is the Initial Value Method (or Cost Method)?