TVM
This principle says money today is worth more than money in the future.
What is time value of money?
This is income before taxes are taken out.
What is gross income?
This is money borrowed that must be repaid with interest.
What is a loan?
This protects you financially after a car accident.
What is auto insurance?
This represents ownership in a company.
What is a stock?
A one-time investment made all at once is called this.
What is a lump sum?
These two taxes fund Social Security and Medicare.
What is FICA/payroll taxes?
This is the cost of borrowing money.
This type of insurance provides a payout to beneficiaries if the insured person dies, helping replace lost income.
What is life insurance?
This is a loan to a company or government that pays interest.
What is a bond?
Regular equal payments over time (monthly investing) are called this.
What is an annuity?
This is the portion of income that is actually taxed after deductions.
What is taxable income?
This is a long-term loan used to purchase real estate, where the property serves as collateral.
What is a mortgage?
This is the fixed amount you pay out-of-pocket for healthcare services before your insurance starts paying.
What is a deductible?
This strategy spreads money across many assets to reduce risk.
What is diversification?
This is the process of finding the present value of future money.
What is discounting?
This is a fixed amount that reduces your taxable income and is available to most taxpayers without itemizing.
What is the standard deduction?
This option allows you to use a vehicle for a fixed period of time with lower payments but no ownership at the end.
What is leasing?
This is the person who owns the insurance policy and is responsible for paying the premiums.
What is the policyholder?
This term refers to how spread out investment returns are (risk variability).
What is dispersion?
This Excel function is used to calculate the present value of future cash flows by discounting them back to today’s value.
What is =PV?
This IRS form is used by employers to report an employee’s annual wages and the taxes withheld from their paycheck.
What is a W-2 form?
This process replaces an existing loan with a new one, often to get a lower interest rate or different repayment terms.
What is refinancing?
This type of auto insurance coverage helps pay for repairs to your own vehicle after a crash, regardless of who is at fault.
What is collision coverage?
Should you trust stock picking experts? Why or why not?
No. Past performance doesn’t predict future performance; markets are uncertain and outcomes vary.