ADVERTISEMENT

Glossary

What is a Pre-Paid Tuition Plan?

A pre-paid tuition plan is one of the two major types of 529 plans that allows investors to lock in the future cost of tuition in today's dollars. The amount invested is guaranteed to grow at the same rate as college tuition, regardless of its...

What is a Principal?

A principal is the amount of an original investment, or the part of a monthly payment that reduces the outstanding balance of a mortgage.    See Also: Your DIY Financial Planning Guide Top 8 Mistakes Investors Make Ask An Advisor: What Is a...

What is a Prospectus?

A prospectus is a legal document required and filed by the Securities and Exchange Commission (SEC) that provides details about an investment offering for sale to the public. A prospectus should contain the facts that an investor needs to make an...

What is Rate of Return?

Rate of return is the gain or loss on an investment over a specified period, expressed as a percentage over or under the initial investment cost. Investments are commonly judged based on their historical rates of return, even though the financial...

What is Rebalancing?

Rebalancing is the process of realigning the asset weightings in a portfolio to maintain a desired asset allocation and manage risk. For example, if your target asset allocation was 50% stocks and 50% bonds and your stocks performed well over a...

What is a Recession?

A recession is a period of general economic decline that typically involves a drop in the stock market, an increase in unemployment, and a decline in the housing market. A recession is generally defined as a decline in GDP for two or more...

What is Refinancing?

Refinancing is the process of paying off an existing loan with the proceeds from a new loan, usually of the same size, and using the same property as collateral. Refinancing can be beneficial if the savings in interest and/or reduced monthly...

What is Renters Insurance?

Renters insurance is a type of home insurance that protects the holder against accidents, damages, and losses that occur in a rented residence. Renter's insurance provides coverage both for the insured's belongings and for liability that may...

ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT

© Copyright DailyWorth 2014