Vocabulary

• Financial Planning – The process of developing strategies and managing resources to achieve financial goals.
• LGBTQ Community – A term that stands for Lesbian, Gay, Bisexual, Transgender, and Queer individuals, characterized by diverse sexual orientations and gender identities.
• Asset Allocation – The process of diversifying investments across various asset classes to balance risk and reward.
• Estate Planning – The preparation of tasks to manage an individual's asset base in the event of their incapacitation or death.
• Retirement Planning – The process of determining retirement income goals and the actions necessary to achieve them.
• Tax Planning – The analysis of a financial situation or plan to ensure tax efficiency.
• Life Insurance – A contract between an individual and an insurer, where the insurer promises to pay a designated beneficiary a sum of money upon the death of the insured person.
• Health Insurance – A type of insurance coverage that pays for medical and surgical expenses incurred by the insured.
• Disability Insurance – A type of insurance that will provide income in the event a worker is unable to perform their work and earn money due to a disability.
• Investment – The act of allocating resources, usually money, with the expectation of generating an income or profit.
• Risk Management – The practice of identifying potential risks in advance, analyzing them and taking precautionary steps to reduce the risk.
• Financial Advisor – A professional who provides financial services to clients based on their financial situation.
• Same-Sex Marriage – A marriage between two people of the same sex.
• Civil Partnership – A legal relationship which can be registered by two people who aren't related to each other.
• Domestic Partnership – A legal or personal relationship between two individuals who live together and share a domestic life but are not married.
• Beneficiary – A person who derives advantage from something, especially a trust, will, or life insurance policy.
• Pension Plan – A type of retirement plan, usually tax exempt, wherein an employer makes contributions toward a pool of funds set aside for an employee's future benefit.
• Social Security – Any government system that provides monetary assistance to people with an inadequate or no income.
• 401(k) Plan – A retirement savings plan sponsored by an employer that allows workers to save and invest a piece of their paycheck before taxes are taken out.
• Roth IRA – An individual retirement account allowing a person to set aside after-tax income up to a specified amount each year.
• Trust Fund – A fund consisting of assets intended to provide benefits to an individual or organization.
• Power of Attorney – A legal document giving one person the power to act for another person in financial and legal matters.
• Inheritance – The practice of passing on property, titles, debts, rights, and obligations upon the death of an individual.
• Joint Tenancy – A legal arrangement in which two or more people own a property together, each with equal rights and obligations.
• Living Will – A legal document that a person uses to make known his or her wishes regarding life-prolonging medical treatments.
• Guardianship – A legal process, utilized when a person can no longer make or communicate safe or sound decisions about his or her person and/or property.
• Certified Financial Planner (CFP) – A certification for financial planners given by the Certified Financial Planner Board of Standards.
• Mutual Fund – An investment program funded by shareholders that trades in diversified holdings and is professionally managed.
• Stocks – A type of security that signifies ownership in a corporation and represents a claim on part of the corporation's assets and earnings.
• Bonds – A fixed income investment where an investor loans money to an entity which borrows the funds for a defined period of time at a fixed interest rate.
• Equities – A stock or any other security representing an ownership interest.
• Dividends – A distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders.
• Capital Gains – The increase in value of a capital asset that gives it a higher worth than the purchase price.
• Annuity – A financial product that pays out a fixed stream of payments to an individual, primarily used as an income stream for retirees.
• Inflation – The rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling.
• Portfolio – A range of investments held by a person or organization.
• Rebalancing – The process of realigning the weightings of a portfolio of assets to maintain a desired asset allocation.
• Living Trust – A legal document created by a person during their lifetime where a designated person, the trustee, is given responsibility for managing that person's assets for the beneficiary.
• Probate – The legal process in which a will is reviewed to determine whether it is valid and authentic.
• Charitable Giving – The act of giving money, goods or time to the unfortunate, either directly or by means of a charitable trust or other worthy cause.
• Long-Term Care Insurance – Coverage that provides nursing-home care, home-health care, personal or adult day care for individuals above the age of 65 or with a chronic or disabling condition.
• Credit Score – A statistical number that evaluates a consumer's creditworthiness.
• Debt – Money that is owed or due.
• Budget – An estimate of income and expenditure for a set period of time.
• Emergency Fund – A stash of money set aside to cover the financial surprises life throws your way.
• Savings Account – A bank account that earns interest.
• Checking Account – A bank account for everyday expenses.
• Mortgage – A loan used to purchase or maintain a home, land, or other types of real estate.
• Financial Independence – The status of having enough income to pay for one's living expenses for the rest of one's life without having to be employed or dependent on others.
• Net Worth – The amount by which assets exceed liabilities.