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Financial Glossary

Here we have gathered some of the key terms that are often referred to when planning your finances. Please feel free to read below and to reach out to us with any questions you may have.

  1035 Exchange

  401(k) Plan

  401(k) Loan

  403(b) Plan

  Account Balance

  Adjustable-Rate Mortgage (ARM)

  Adjusted Gross Income (AGI)


  After-Tax Return

  Aggressive Growth Fund

  Alternative Minimum Tax (AMT)

  American Stock Exchange (AMEX)

  Annual Percentage Rate (APR)

  Annual Report




  Asset Allocation

  Asset Class


  Automatic Reinvestment

  Balanced Mutual Fund

  Bear Market


  Blue Chip Stock


  Book Value

  Bull Market


  Buy-Sell Agreement

  Capital Gain or Loss

  Cash Alternatives

  Cash Surrender Value

  Certificate of Deposit (CD)

  Charitable Lead Trust

  Charitable Remainder Trust



  Coinsurance or Co-Payment

  Commercial Paper

  Common Stock

  Community Property

  Compound Interest

  Consumer Price Index (CPI)

  Convertible Term Insurance

  Corporate Bond


  Coverdell Education Savings Account (Coverdell ESA)

  Credit Score


  Debt-to-Equity Ratio



  Deferred Annuity

  Defined Benefit Plan

  Defined Contribution Plan



  Direct Rollover

  Disability Income Insurance



  Dollar-Cost Averaging

  Dow Jones Industrial Average (DJIA)

  Early Withdrawal

  Employee Stock Ownership Plan (ESOP)

  Employer-Sponsored Retirement Plan


  Employee Retirement Income Security Act (ERISA)

  Estate Management

  Estate Tax

  Exchange-Traded Funds (ETFs)

  Executive Bonus Plan


  Federal Income Tax Bracket

  Federal Reserve System (The Fed)

  Financial Aid

  Financial Statement

  Financial Industry Regulatory Authority (FINRA)

  First-to-Die Life Insurance

  Fixed Annuity

  Fixed-Rate Mortgage


  Front-End Load

  Fundamental Analysis


  Gift Tax

  Gross Monthly Income

  Group Life Insurance

  Health Savings Account (HSA)

  Home Equity



  Individual Retirement Account (IRA)


  Initial Public Offering (IPO)

  Interest Rate


  Investment Objective

  Irrevocable Trust

  Joint Tenancy

   Held Property

  Keogh Plan

  Key Employee

  Key Person Insurance

  Life Insurance


  Living Trust

  Living Will

  Long-Term-Care Insurance

  Lump-Sum Distribution

  Management Fee

  Marital Deduction

  Market Risk

  Market Timing




  Money Market Fund

  Municipal Bond

  Municipal Bond Fund

  Mutual Fund

  National Association of Securities Dealers Automated Quotations (NASDAQ)

  Net Asset Value

  Net Income

  Net Worth

  New York Stock Exchange (NYSE)

  Non-contributory Retirement Plan

  Non-qualified Plan

  Old-Age, Survivors, and Disability Insurance (OASDI)


  Permanent Life Insurance

  Policy Loan

  Policy Rider



  Power of Attorney

  Preferred Stock

  Prenuptial Agreement

  Price/Earnings Ratio (P/E Ratio)

  Prime Interest Rate




  Profit-Sharing Plan


  Qualified Retirement Plan

  Rate of Return

  Real Estate Investment Trust (REIT)


  Required Minimum Distribution (RMD)


  Revocable Trust


  Risk Tolerance


  Roth IRA

  Roth IRA Conversion

  Securities and Exchange Commission (SEC)

  Self-Directed IRA


  Savings Incentive Match Plan for Employees (SIMPLE)

  Split-Dollar Plan

  Split-Dollar Life Insurance

  Spousal IRA

  Standard & Poor’s 500 Index (S&P 500)


  Stock Certificate

  Stock Purchase Plan

  Stock Split

  Tax Credit

  Tax Deduction

  Tax Deferred

  Tax-Exempt Bonds

  Taxable Income

  Technical Analysis

  Tenancy in Common

  Term Insurance

  Testamentary Trust

  Time Horizon


  Total Return




  Trustee-to-Trustee Transfer

  Uniform Gift to Minors Act (UGMA)

  Universal Life Insurance

  Unlimited Marital Deduction

  Variable Interest Rate

  Variable Universal Life Insurance


  Whole Life Insurance




  Zero-Coupon Bond