In every industry there are words or “lingo” specific to that industry. The investment community is no different. In fact, it can be very confusing deciphering what means what.
There’s many websites that offer definitions of investing lingo, but you can subscribe to one that will send you a new definition every day which is an automatic reminder that there are new investing words to learn all the time. Even if you already know some of the words in the investment industry, it acts as a great reminder or refresher.
Here’s a link that you can subscribe to and get new financial and investment words delivered to you by email. Browse to InvesterWords.com and subscribe to their daily email. You’ll receive one word a day to your inbox and you’ll start learning the lingo slowly over the long haul.
Here 7 investing words that will help you at Smart Saving and Investing:
1. Mutual Fund – A mutual fund is basket of investments. That basket of investments could hold stocks, bonds, gold, etc.
2. Roth IRA – A Roth IRA is an Individual Retirement Account where you can invest and your withdrawals during retirement are tax free.
3. Annuities – An annuity is a contract between you and an insurance company, under which you make a lump-sum payment or series of payments. In return, the insurer agrees to make periodic payments to you beginning immediately or at some future date.
4. Bonds – An investor loans money to an entity (corporate or governmental) that borrows money for a defined period of time at a fixed interest rate. Bonds are used by companies, municipalities, states and U.S. and foreign governments to finance a variety of projects and activities.
5. Retirement Plan – the setting aside of money or other assets to obtain a steady income at retirement. The goal of retirement planning is to achieve financial independence.
6. 401K – A 401K is typically a retirement plan offered by your employer.
7. 403b – A 403b is a retirement plan offered by universities, civil government, and not-for-profit employees.
Another great investment lingo resource is the U.S. Securities and Exchange Commission.