Ask An Expert

Sponsored by

What is an Asset?

An asset is an entity with economic value that you own with the expectation that it will provide future benefit.    See Also: Ask An Advisor: Help! I'm Running Out of Money Top 8 Mistakes Investors Make Ask An Advisor: How to Recover Financially...

What is an Asset Class?

An asset class is a group of investments that share similar characteristics and behavior, and are subject to the same laws and regulations. The three main asset classes are equities (stocks), fixed-income (bonds) and cash equivalents (money market...

What is Bad Debt?

Bad debt is debt that typically carries a high interest rate and is incurred to purchase items that depreciate in value. Credit card debt and auto loans are the most common forms of "bad debt."   See Also: How I Ditched My Debt For Good Is Your...

What is a Benchmark?

A benchmark is a standard against which the performance of a particular investment, portfolio or money manager can be measured for comparison. Typically, broad stock and bond indexes are used for this purpose.   See Also:  Ask An Advisor: Am I...

What is a Beneficiary?

A beneficiary is a person or place designated to receive distributions typically from a trust, will or life insurance policy.   See Also: Ask An Advisor: How Much Life Insurance Do I Need? Got Competing Financial Priorities? Your Fall Investing...

What is a Bond?

A bond is a debt investment in which an investor loans money to a corporation, government or municipality that borrows the funds for a defined period of time at a fixed interest rate. Bonds are used to finance a variety of projects and activities....

What is a Budget?

A budget is an estimate of income and expenses for a specific period of time in the future that can be used for personal, business or other purposes. Ideally, you have a "surplus" budget with extra income after all expenses and not a "deficit"...

What is a Certificate of Deposit (CD)?

A Certificate of Deposit (CD) is a promissary note generally issued by commercial banks that has a maturity date, fixed interest rate and is insured by the FDIC. In most cases there is a penalty for withdrawing your investment prior to the...

What is a Checking Account?

A checking account is a highly liquid, transactional account held at a financial institution that allows you to make withdrawals and deposits on demand. Because of the high liquidity, checking accounts generally pay a very low rate of interest, if...

What is a College Savings Plan?

A college savings plan is the same as a 529 savings plan, or a savings plan where money can be invested to grow on a tax-deferred basis and withdrawn free from federal and potentially state taxes if used for "qualified" higher education expenses,...

ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT