Someone who’s mastered all the math and financial jargon so you don’t have to. Work with them to create a portfolio that matches your goals.
What you’re worth. Right now, that might just be $500 in your bank account, but it also includes other wealth (like investments, stocks, bonds…)
3. Capital Appreciation:
When you sell stocks at a profit, you’re money-literally. Appreciate the appreciation.
4. Certificate of Deposit (CD):
A fancy alternative to your savings account that pays interest-except you can’t take the money out until a set maturity date.
As companies grow, some share their profits with stockholders in the form of money or more stock.
Dividends aren’t always included though (so read the fine print).
6. Investment Risk:
Every product, whether it’s stocks in Apple or a carefully invested IRA, could lose you money. It’s about weighing how risky you want to be an accepting the consequences.
AKA the “Individual Retirement Account”. You invest in a portfolio during your working years, then live large and travel off of the account in your retirement.
8. Maturity Date:
Investment jargon for “this is the day you get your investment back with interest”.
9. Mutual Fund:
Like splitting the tab at dinner with your BBFs, except instead, you’re splitting up an investment (recommended and managed by a savvy broker of course).
The grand sum of all your investments from CDs to stocks a diverse portfolio is key so mix it up.
11. Treasury Bills (T-Bills):
Like stock investments in a company, except that company is your country. How patriotic.
12. Stocks AKA Shares:
Think of a company like a giant apple pie at your local diner. You can buy a slice (or two, or twenty) depending on your dessert goals. The better the pie, the better the slice. The better the company the better the payoff.