Category: Glossary
An insurance policy is the written document or contract between you (the policy holder) and your insurance company that details what coverage or reimbursement they will provide, in what circumstances,…
Your insurance deductible is the amount you will have to pay when you have an insurance claim before your insurance kicks in and starts to cover your expenses. After you…
Insurance premium is the amount you pay your insurance company for the coverage they will provide for you for a defined period of time. It’s basically the cost of your…
Passive management, or passive investing, is a way of investing broadly in a general market or part of the market without making specific decisions about what to buy and sell…
Active management, or active investing, means making deliberate decision on what to invest in and when. It involves ongoing buying and selling based on changing opinions on what investments will…
A target date fund is an investment option, usually a mutual fund, designed to let people choose a fund based on a single factor: a “target retirement date” near their…
A robo-advisor is a type of financial advisor that provides investment management and advice through an app or website. Instead of working with a person, the robo-advisor’s software provides a…
Your investment goals are what you intend on using the money in your investment accounts for. 401(k) investments are for the goal of retirement. 529 plans are for the goal…
Risk capacity is what your situation and needs say about your ability to take risk in your investment portfolio. The younger you are and further you are from needing to…