| A | B |
|---|
| Annuity | a contract where payments are made for a specific period of time in return for receipt of a future series of payments (ex. Social Security) |
| Certificate of deposit | a type of savings account where investors agree to leave their money in the account for a specified period of time |
| 401k plan | A retirement plan which allows an employee to set aside a specified amount of tax deferred income |
| Fixed annuity | A contract whereby payments are made in return for payment of a set of money at some future date |
| Interest bearing checking account | a checking account that pays interest to the owner of the account |
| Money market account | an interest bearing checking account that is a type of mutual fund typically comprised of safe, highly liquid investments with a maturity of one year or less |
| Negotiable Order of Withdrawal (NOW Account) | a type of savings account on which checks may be drawn |
| Savings account | deposits made at a financial institution that earn interest and may be withdrawn at any time and may not be used for checking purposes |
| Term life insurance | a type of insurance that provides a death benefit to a named benificiary upon the death of the insured |
| Whole life insurance | a type of insurance that provides a death benefit to a named beneficiary and accumulates savings or cash value |
| Blue chip stock | a unit of ownership in a large, well established firm |
| Bond | loans made to governments or corporations |
| Corporate bond | a bond issued by a corporation |
| Equity | ownership |
| Debt | borrowing |
| Government bond | a bond issued by the U.S. Government |
| Individual Retirement Account | a retirement account in which a person may deposit up to a stipulated amount each year with the deposits deductible from a taxable income. |
| Morningstar | one of the firms that rates the investment quality of mutual funds |
| Moody's/Standard & Poor's | one of the firms that rates the investment quality of stocks and bonds |
| Municipal bond | a bond issued by a county, city, state government or special taxing district |
| Mutual Fund | a financial instrument that represents ownership of portions of a variety of stocks and bonds |
| Diversification | reducing the level of risk by spreading investment purchases among several stocks or bonds |
| Variable Annuity | a contract whereby payments are made in return for payment of an unspecified amount of money at some future date. |
| Variable life insurance | a type of insurance that provides a death benefit |
| Futures | a contract made now for commodities to be bought or sold in the future |
| Options | a contract which allows a buyer to purchase a stock or futures contract at an agreed to price during a specific time period |
