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14 Cards in this Set
- Front
- Back
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discretionary income or excess cash flow |
what is left after paying the bills |
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marginal tax bracket |
the range of adjusted gross incomes subject to a particular marginal tax rate |
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net worth |
the difference between assets and liabilities
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liquid net worth |
net worth figured without including hard-to-sell assets such as real estate or art work
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investment objectives |
capital preservation, income, growth & income, growth, speculation. |
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growth & income |
a fund that purchases stocks for growth potential and also for dividend income. Less volatile than pure growth funds due to the income that calms investors down when the ride becomes turbulent.
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aggresive growth |
equity investments that face a higher risk of loss but also a higher potential return.
international funds, sector funds (healthcare, telecommunications, financial services, etc), and emerging market funds (china, india, brazil) |
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speculation |
high-risk investment objective for investors willing to bet on a large price-change in an asset, irrespective of any income it might produce. Short-term: options and futures. Long-term: warrants or raw land. |
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capital appreciation |
the rise in an asset's market price. the objective of a "growth investor"
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capital preservation |
investment objective placing the emphasis on making sure the principal is not lost
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time horizon |
the anticipated holding period of an investment
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The longer the time horizon the ____ volatility the investor can withstand |
more |
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target funds |
the fund automatically changes the allocation from mostly stock to mostly bonds as we get closer and closer to the retirement/graduation |
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risk tolerance |
financial resources and the psychological ability to sustain wide fluctuations in market value |
