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Savings/Investment
| Term | Definition |
|---|---|
| Savings | A type of account in which your money is not connected to a card, and it garners a little bit of interest; Also refers to money you are keeping for later. |
| Investment | Money you put into something in hope of getting a return. |
| Return on Investment | The amount of money you get out of an investment in relation to how much you put in. |
| Compound Interest | Interest that is taken again every term (times can vary) on the new total. |
| Stock | A portion of a company that you pay for in hopes of getting a return or gaining stake in the company. |
| Bond | Essentially a loan that you give out, in exchange for a secure amount of interest paid back. |
| Diversification | The act of spreading your investments across many different markets and methods to better increase your odds and decrease your market risks. |
| Retirement Account | An account that you pay into, to collect from upon reaching retirement age. |
| Stock Market | The market of the many different stocks that you can choose from. |
| Dividend | A payment that certain companies will give out to their stockholders. |
| Mutual Fund | A diversified investment account made from pooling many peoples funds. |
| Common Stock | A stock that gives you fractional ownership upon purchasing. |
| Preferred Stock | An investment that combines characteristics from both bonds and regular stocks. |
| Corporate Bond | Essentially a loan that you give out to a corporation, in exchange for a secure amount of interest paid back. |
| Government Bond | Money that you give to the government, in exchange for a secure amount of interest paid back. |
| Beneficiary | The person, in a will or policy, who will collect whatever is willed. |
| Trust | A legal document/account that holds a particular asset or set of assets for another person, these typically come with a time limit or qualification to claim. |
| Estate | All property owned by a person or group. |
| Will | A legal document that a person makes before their death which decides where their belongings will go upon their death. |
| Power of Attorney | A document that gives somebody legal right to act on behalf of another. |
| Investment Liquidity | The ability/ease of an investment to be converted into cash. |
| Probate | The court supervised the process of validating a will. |
| Personal Financial Planning | A comprehensive plan made to best invest and save someone's money. |
| Estate Planning | the process of planning for the transfer of assets or an estate. |
| Executor | The person selected to make sure the will is followed. |