Chapter 2 Flashcards
(34 cards)
Kiss rule
Keep it simple stupid
Diversification
To spread around, also lowers risk
ACD
Certificate of deposit, typically a bank
With virtually all investments, as the ____ goes up, so does the potential return
Risk
When discussing investments.
, ____ is available
Liquidity, and when there’s more liquidity, typically less return
Money market mutual funds are ____risk. These are great for _____.
Low
Emergency fund
Single stock investing carries a extremely ______ degree of risk.
High
When you buy stock you are buying a small piece of _______ in the company
Ownership
Your return comes as the company increases in the _____ or pays you the owner some of its profits ______.
Value
Dividence
What’s a bond
A bond is a a debt by which the company owes you money
Your return is the fluctuation in price in the ____rate paid. Few individuals do well with ____ ______ purchases.
Interest
Single bond
What do investors pool to invest?
Money
Portfolio managers manage the_____ or _______
Pool
Fund
Your _____ comes as the _____ of the fund is increased.
Value
Return
What should you have lots of before using real estate as an investment?
Money
What are annuities?
Their saving accounts with an insurance company.
What’s a fixed annuities?
Low interest rate around 5% , not really fixed, and are bad investment
What are Variable annuities
Mutual funds sheltered by the annuity covering, thereby allowing the mutual fund to grow tax deferred
Horrible investments…..
Gold, commodities and futures , day trading, and viaticals
Growth and income funds
Large cap
Always check the record when investing
5-10 year track record
Spread around the risk
Diversification
Piece of an ownership in a company stock
Share
List of all your investments
Portfolio
