We realize that some terms in the financial industry can be confusing or may just need some clarification. So, we’ve put together this helpful list of glossary terms to help you learn more and stay in the know.
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
401(k) – a method by which the workers in a company can save money for their retirement by having an amount of money saved from their paychecks over a long period of time
Annuity – an insurance policy or an investment that pays someone a fixed amount of money each year
Estate Planning – the arranging for the disposition and management of one’s estate at death through the use of wills, trusts, insurance policies and other devices
Fiduciary – an individual who has an obligation to act first, only and foremost in the best interest of their client in regards to financial matters
Financial Advisor – an individual who gathers financial information, provides detailed analysis and makes recommendations in accordance with the needs and desires of their client
Investment – the outlay of money usually for income or profit
Life Insurance – Term – life insurance that provides coverage for a set term and does not accumulate cash surrender value
Life Insurance – Whole Life – life insurance that provides coverage over the life of the insurance and that can be sold for surrender value or used as the basis of low-interest loans
Power of Attorney – a legal instrument authorizing one to act as the attorney or agent of the grantor
Trust – an arrangement in which someone’s property or money is legally held or managed by someone else or by an organization (such as a bank) for usually a set period of time
Will – a legal document in which a person states who should receive his or her possessions after he or she dies
A majority of definitions have been adapted from Merriam-Dictionary.com.