Vocabulary

• Long-Term Care – A variety of services which help meet both the medical and non-medical needs of people with a chronic illness or disability who cannot care for themselves for long periods.
• Financial Planning – The process of determining a person's financial goals, purposes in life and life's priorities, and after considering his resources, risk profile and current lifestyle, to detail a balanced and realistic plan to meet those goals.
• Insurance – A contract, represented by a policy, in which an individual or entity receives financial protection or reimbursement against losses from an insurance company.
• Medicare – A federal program that provides health coverage if you are 65 or older or have a severe disability.
• Medicaid – A joint federal and state program that helps with medical costs for some people with limited income and resources.
• Retirement Planning – The process of determining retirement income goals and the actions and decisions necessary to achieve those goals.
• Savings – The portion of income not spent on current expenditures.
• Assets – Resources with economic value that an individual, corporation, or country owns or controls with the expectation that it will provide a future benefit.
• Estate Planning – The preparation of tasks that serve to manage an individual's asset base in the event of their incapacitation or death.
• Trusts – A fiduciary relationship in which one party, known as a trustor, gives another party, the trustee, the right to hold title to property or assets for the benefit of a third party, the beneficiary.
• Annuities – A financial product that pays out a fixed stream of payments to an individual, primarily used as an income stream for retirees.
• Investment – The action or process of investing money for profit or material result.
• Inflation – The rate at which the general level of prices for goods and services is rising.
• Health Insurance – A type of insurance coverage that pays for medical and surgical expenses incurred by the insured.
• Life Insurance – A contract between an insurer and a policyholder in which the insurer guarantees payment of a death benefit to named beneficiaries upon the death of the insured.
• Tax Planning – The analysis of a financial situation or plan to ensure that all elements work together to allow you to pay the lowest taxes possible.
• Risk Management – The identification, assessment, and prioritization of risks followed by the application of resources to minimize, monitor, and control the probability of unfortunate events.
• 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.
• Pension Plan – A retirement plan that requires an employer to make contributions into a pool of funds set aside for a worker's future benefit.
• Social Security – Any government system that provides monetary assistance to people with an inadequate or no income.
• Budgeting – The process of creating a plan to spend your money.
• Income – Money received, especially on a regular basis, for work or through investments.
• Expenses – The cost required for something; the money spent on something.
• 401(k) – A retirement savings plan sponsored by an employer. It lets workers save and invest a piece of their paycheck before taxes are taken out.
• IRA (Individual Retirement Account) – A type of savings account that is designed to help you create a nest egg for your retirement while enjoying tax advantages.
• Beneficiary – A person who derives advantage from something, especially a trust, will, or life insurance policy.
• Diversification – The process of allocating capital in a way that reduces the exposure to any one particular asset or risk.
• Equity – The value of an asset after all liabilities or debts have been paid.
• Debt – Money that is owed or due.
• Interest Rate – The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding.
• Credit Score – A number assigned to a person that indicates to lenders their capacity to repay a loan.
• Cash Flow – The total amount of money being transferred into and out of a business, especially as affecting liquidity.
• Liquidity – The availability of liquid assets to a market or company.
• Net Worth – The amount by which assets exceed liabilities.
• Portfolio – A range of investments held by a person or organization.
• Return on Investment (ROI) – A performance measure used to evaluate the efficiency of an investment.
• Securities – A tradable financial asset.
• Stock Market – A stock exchange.
• Bond – A debt security, similar to an IOU.
• Mutual Fund – An investment vehicle made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments, and similar assets.
• Capital Gain – A profit from the sale of property or an investment.
• Dividend – A distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders.
• Real Estate – Property consisting of land or buildings.
• Mortgage – A legal agreement by which a bank or other creditor lends money at interest in exchange for taking title of the debtor's property.
• Depreciation – A reduction in the value of an asset over time.
• Fixed Costs – Business expenses that are not dependent on the level of goods or services produced by the business.
• Variable Costs – Costs that vary with the level of output.
• Savings Account – A deposit account held at a bank or other financial institution that provides principal security and a modest interest rate.
• Checking Account – A deposit account held at a financial institution that allows withdrawals and deposits.
• Compound Interest – The addition of interest to the principal sum of a loan or deposit, or in other words, interest on interest.