Anything of value that you own and that increases your net worth. Assets include but are not limited to cash, property, and securities.
Also referred to as a fixed income security. A bond is a debt certificate or IOU issued by a corporation or unit of government. In exchange for lending their funds to the bond issuer, lenders are promised interest payments and the return of their initial investment at a specified future date.
A sum of money set aside in a readily accessible savings account for unanticipated events such as unemployment, medical bills, and car repairs. Emergency fund amount guidelines vary, but a general rule of thumb is to have enough to cover at least three months of basic living expenses.
Also known as debts. Money owed by an individual or a business that decreases net worth.
Also known as take-home income. The amount of money that a worker receives in a paycheck after items such as income taxes, Social Security (FICA) tax, retirement plan savings, union dues, and other items have been deducted.
A snapshot of your financial situation calculated by subtracting your liabilities (debts) from your assets. Both assets and liabilities are assessed at the current fair market value.
The combined holding of stocks, bonds, cash and cash equivalents, and any other assets owned by an individual or household.
A term used to refer to stocks and bonds
Also known as equity. A type of investment (security) that represents a unit of ownership in a corporation. This ownership is represented by shares of stock, which are a claim on the corporation’s assets and earnings.
The amount of income that a taxpayer looks up in a tax table to determine the tax due after subtracting adjustments, deductions, and exemptions from gross income.
CFP® certification is a voluntary certification granted in the United States by Certified Financial Planner Board of Standards, Inc. It is recognized in the United States and a number of other countries for its (1) high standard of professional education; (2) stringent code of conduct and standards of practice; and (3) ethical requirements that govern professional engagements with clients. Individuals who become certified are required to complete continuing education.
The glossary terms displayed on our website are solely for information purposes. Nothing contained herein should be considered as investment advice. The terminology and definitions provided on our website derive from third-party sources believed to be reliable and accurate at the time the information was retained. Morris Financial Concepts, Inc. is not responsible for errors or omissions in the material on third party websites and does not necessarily approve of or endorse the information provided. For questions or to report in known material inaccuracies, please contact us.