Term
|
Definition
| lacking morals neither good nor bad |
|
|
Term
|
Definition
| the seven steps to a healthy financial plan |
|
|
Term
|
Definition
| $1000 in an emergency fund or $500 if you make less than 20000 a year |
|
|
Term
|
Definition
| pay off all debt except the house utilizing the debt snowball |
|
|
Term
|
Definition
| three to six months expenses in savings |
|
|
Term
|
Definition
| invest 15% of your household income into roth iras and pre tax retirement plans |
|
|
Term
|
Definition
|
|
Term
|
Definition
|
|
Term
|
Definition
|
|
Term
|
Definition
| interest paid on interest previously earned, credited daily, monthly quarterly semi annually or annually on both principal and previously credited interest |
|
|
Term
|
Definition
| three to six months of expenses in readily available cash to be used on in the event of an emergency baby step 3 |
|
|
Term
|
Definition
| percentage paid to a lender for the use of borrowed money |
|
|
Term
|
Definition
| mutual fund that seeks to maintain a stable share price and to earn current income by investing in interest bearing instruments with short term usually 90 days or less maturities |
|
|
Term
|
Definition
| anything that can happen will happen |
|
|
Term
| pre-authorized checking (PAC) |
|
Definition
| system of automatic payment processing by which bills, deposits, and payments are handled electronically and at regular intervals or on a predetermined schedule |
|
|
Term
|
Definition
| level of high importance or great urgency |
|
|
Term
|
Definition
| saving money for a specific purpose to allow interest to work for you rather than against you |
|
|
Term
| for most people a fully funded emergency fund will be about |
|
Definition
|
|
Term
| Ben and Arthur illustrate which principle of saving? |
|
Definition
|
|
Term
| Baby steps 1 and 3 have to do with |
|
Definition
| savings and emergency fund |
|
|
Term
| you should save for the following |
|
Definition
| emergency fund, purchases, wealth building |
|
|
Term
| how many baby steps are there |
|
Definition
|
|
Term
| saving is about contentment and |
|
Definition
|
|
Term
| the following is true pacs |
|
Definition
stands for pre-authorized checking
helps build discipline when saving |
|
|
Term
| aggressive growth stock mutual fund |
|
Definition
| mutual fund that seeks to provide maximum long-term capital growth from stocks of primarily smaller companies or narrow market segments, dividend income is incidental the most volatile fund also referred to as a small cap fund |
|
|
Term
|
Definition
| contract sold by an insurance company, designed to provide payments to the holder at specified intervals usually after retirement the holder is taxed at the time of distribution or withdrawal making this tax deferred arrangement |
|
|
Term
|
Definition
| debt instrument where an issuer such as corporation municipality or government agency owes you money a form of I.O.U the issuer makes regular interest payments on the bond and promises to pay back or redeem the face value of the bond at a specified point in the future (the maturity date) |
|
|
Term
|
Definition
| certificate of deposit usually at a bank savings account with a slightly higher interest rate because of a longer savings commitment (i.e. six months, one year, etc) |
|
|
Term
|
Definition
| a food metal or fixed physical substance that investors buy or sell usually via future contracts |
|
|
Term
|
Definition
| to spread around ones investment dollars among several different classes of financial assts and among the securities of many issuers results in lowered risk |
|
|
Term
|
Definition
| distribution of a portion of a companys earnings decided by the board of directors to a class of its sharholders generally distributed in the form of cash or stock |
|
|
Term
|
Definition
| type of annuity that guarantees a certain rate of return |
|
|
Term
|
Definition
| a term used to designate all contracts covering the sale of financial instruments or physical commodities for future delievery on a commodity exchange |
|
|
Term
|
Definition
| account or arrangement in which one would put their money for long term growth should not be withdrawn for a suggested minimum of five years |
|
|
Term
|
Definition
| fund that buys stock in medium sized companies that have experienced some growth and are still expanding also called a mid cap fund |
|
|
Term
|
Definition
| funds comprised of large well established companies |
|
|
Term
|
Definition
| quality of an asset that permits it to be converted quickly into cash without loss of value availability of money when there is more liquidity there is typically less return |
|
|
Term
|
Definition
| mutual fund containing a group of medium sized companies that are growing |
|
|
Term
|
Definition
| mutual fund that seeks to maintain a stable share price and to earn current income by investing in interest bearing instruments with short tem (usually 90 days or less) maturities |
|
|
Term
|
Definition
| pool of money managed by an investment company and invested in multiple companies bonds etc. offers investor a variety of goals depending on the fund and its investment charter often used to generate income on a regular basis or to preserve an investors money sometimes used to invest in companies that are growing at rapid pace |
|
|
Term
|
Definition
| a list of your investments |
|
|
Term
|
Definition
| buying real estate to rent out as an investment |
|
|
Term
|
Definition
| degree of uncertainty of return on an asset in business the likelihood of loss or reduced profit |
|
|
Term
| international stock mutual fund |
|
Definition
| mutual fund taht contains international or overseas companies |
|
|
Term
|
Definition
| relationship of substantial reward in comparison to the amount of risk taken |
|
|
Term
|
Definition
| accounts at financal institutions that allow regular deposits and withdrawls the minimum required deposit fess charged and interest rate paid varies among providers |
|
|
Term
|
Definition
| piece of ownership in a company or mutual fund |
|
|
Term
|
Definition
| investing carries an extremely high degree of risk |
|
|
Term
|
Definition
| mutual fund that invest in companies whose market value is less than $1 billion, largely consist of smaller more volatile companies also called aggressive growhth stock mutual fund |
|
|
Term
|
Definition
| purchasing risky investments that present the possibility of large profits but also pose a higher than average possbility of loss |
|
|
Term
|
Definition
| the past history of something with investments look at the five or ten year record |
|
|
Term
|
Definition
| annuity that has a varying rate of return based on the mutual funds to project better returns |
|
|
Term
|
Definition
| defined contribution plan offered by a corporation to its employees which allows employees to set aside tax deffered income for retirement purposes in some cases employers will match their contributions |
|
|
Term
|
Definition
retirement plan similar to a 401k plan but one that is offered by non profit organizations such as hosiptals, schools, and some charitable organizations rather than corporations employees set aside tax deferred dollars |
|
|
Term
|
Definition
| non qualified deferredd compensation plan established by state and local governments for tax exempt government agencies and tax-exempt employers eligible employers are allowed to make salary deferral contributions to the 457 plan earnings grow on a tax deferred basis and contributions are not taxed until the assets are distributed from the plan |
|
|
Term
|
Definition
| college savings plan that allow individuals to save on a tax-deferred basis in order fund future college and graduate school expenses of a child or beneficiary; generally sponsored by a state these are professionally managed investments |
|
|
Term
|
Definition
| one who is responsible for an account listed in someone elses name |
|
|
Term
|
Definition
| movement of tax deferred retirement plan money from one qualified plan or custodian to another results in no immediate tax liabilities or penalties but requires irs reporting |
|
|
Term
| ESA educational saving account |
|
Definition
| after tax college fund that grows tax free for educational uses eligibility based on parents annual income |
|
|
Term
IRA
individual retirement arrangement |
|
Definition
| tax-deferred arrangement for individuals with earned income and their non income producing spouses growth is not taxed unitl money is withdrawn contributions to an ira are often tax deductible |
|
|
Term
|
Definition
| paying for college ahead of time by accumulating units of tuition |
|
|
Term
|
Definition
| movement of funds from tax deferred retirement plan from one qualified plan or custodian to another incurs no immediate tax liabilities or penalties but require irs reporting |
|
|
Term
|
Definition
| retirement account funded with after tax dollars that subsequntely grows tax free |
|
|
Term
sepp
simplified employee pension plan |
|
Definition
| penision plan in which both the employee and the employer contribute to an individual retirement account also available to the self employed |
|
|
Term
|
Definition
| money that is working for you either tax deferred or tax free within a retirement plan |
|
|
Term
ugma
uniform gifts to minors act |
|
Definition
| legislation that provides a tax effective manner of transferrign property to minors without the complications of trust or guardianship restrictions |
|
|
Term
utma
uniform transfers to minors act |
|
Definition
| law similar to the uniform gifts to minors act that extends the definition of gifts to include real estate paintings royalties and patents |
|
|
