Inflation is the loss of purchasing power as a result of too many dollars chasing a limited supply of goods and services.
Market Timing is an investment strategy where an investor buys or sells an asset based on a predictive assessment of that asset's price movement.
Time Horizon is the duration that an investor expects to hold an asset or portfolio before taking distributions from that asset or portfolio.
Consumer Debt is a liability incurred on an item that does not appreciate (e.g. Credit card debt).
Buy-and-Hold
Buy-and-hold is an investment strategy where an investor buys an asset and holds it, irrespective of price fluctuations.
Technical Analysis is a method of analyzing securities to make investment decisions based on historic market data and trends.
Value Investing is an investment strategy, for which investors like to buy near book value, at low valuation ratios, and high dividend yields.
Net Worth = Assets - Liabilities. Assets include things like checking and IRA accounts. Liabilities include things like credit cards and mortgages.
Cost Basis is the purchase price of an asset. For tax purposes, Cost Basis is used to determine Capital Gains or Losses.
Wash Sale Rule
The Wash Sale Rule is an IRS rule that prohibits one from using a loss to offset a gain(s) if the taxpayer repurchases the same security within 30 days.
Tax Loss Harvesting
To minimize tax liabilities, Tax Loss Harvesting is the practice of selling securities at a loss.
Reinvestment is the use of investment income to purchase additional shares of the asset that generated the income.
Tax Efficiency is an investment strategy in which one chooses investments based on their tax treatment in addition to all the other investment factors.
Marginal Tax Rate, or just Tax Rate, is the tax rate applied to the last dollar of income earned.
A Fiduciary is obligated to act in the best interest of the client.
A trust is a legal arrangement in which a Grantor gives to a Trustee the right to hold and invest assets for the benefit of a Beneficiary(s).
Property, money or assets that one person transfers to another while receiving nothing or less than fair market value in return.
Growth Investing is an investment strategy in which the projected future price of a company's shares is deemed more important than the its underlying value.
Fundamental Analysis is a method of analyzing a security to make investment decisions based on the company's underlying value.
Dollar-Cost Averaging is a risk management technique that aims to reduce the risk of buying or selling assets at unfavorable prices.