Get in the know with the following list of money terms. A financial contract, usually sold by an insurance company or other financial institution, that guarantees a series of specific payments, either beginning immediately or at some future time, such as after retirement. Fixed annuities pay a constant dollar amount while the payments on variable annuities depend on the performance of underlying financial assets. An increase in the value of an investment over its cost. The process of dividing funds between different types of investments such as stocks, bonds, cash, etc.
Asset allocation is the single most important driver of investment return.
TOP Asset Class Major categories of investments including, but not limited to, domestic stocks, domestic bonds, international stocks, international bonds, high yield bonds, real estate and cash. A financial statement showing the financial condition of a company, or an individual at a given point in time. It includes assets, liabilities and net worth. The assets equal the liabilities plus net worth. A mutual fund that invests in both stocks and bonds.