Faith-Based Financial Guidance with Craig Johnston, MBA • Independent • Fee-Only
Faith-Based Financial Guidance with Craig Johnston, MBA • Independent • Fee-Only
Finance shouldn’t feel complicated. This glossary explains common planning and investment terms in straightforward language so you always understand the concepts involved in your plan, portfolio, and long-term strategy.
This glossary covers the most frequently used financial planning, investment, and real estate terms you may encounter as we work together. Click any term to expand and learn more.
The total value of investments managed on your behalf by a financial advisor or firm.
How your investments are divided across categories like stocks, bonds, and real estate to balance risk and return.
A contract that provides income in retirement, typically sold by insurance companies. We do not sell annuities as a fee-only fiduciary firm.
A unit equal to 0.01% used to measure fees or interest rate changes.
The person or entity you designate to receive your assets upon your passing.
A loan you make to a government or company in exchange for interest payments.
Profits from selling an investment for more than you paid.
A financial institution (like Schwab) that holds your investment accounts for safekeeping.
The original value of an investment, used to calculate gains or losses.
Spreading investments across different asset types to reduce risk.
A real estate structure often used in 1031 exchanges allowing investors to hold fractional interests in large real estate assets.
Money withdrawn from an investment or retirement account.
A diversified investment fund traded on the stock market, often low cost and tax efficient.
The process of arranging for the management and distribution of your assets after death.
A professional legally required to act solely in your best interest — with loyalty, care, and transparency.
An advisor compensated only by the client, not by product sales or commissions.
An investment mix focused on long-term appreciation rather than short-term income.
A fund that tracks a specific market index, typically low cost and diversified.
The rise in prices over time, reducing purchasing power.
A tax-advantaged account used for retirement savings.
How easily an investment can be turned into cash.
Profits from investments held longer than one year, typically taxed at a lower rate.
Fluctuations in the value of investments due to market conditions.
An investment fund managed by professionals; may have higher fees compared to ETFs.
All of your investments considered as a whole.
The amount of money you initially invest or borrow.
A tax-advantaged account used for retirement savings.
Adjusting your portfolio to maintain your desired allocation.
Mandatory withdrawals from certain retirement accounts starting at a specific age.
A measure of how much an investment has grown relative to its cost.
Interactive projections used to model “what-if” financial situations.
Ownership shares in a company.
Preparing for the transfer of business or estate assets.
Selling investments at a loss to offset taxable gains.
A tax-deferral strategy allowing real estate investors to exchange one property for another.
A legal entity that holds assets for the benefit of another person.
Comprehensive planning and investment management to support long-term financial wellbeing.
A plan for how and when to take money from investments or retirement accounts.
Let’s build a long-term plan aligned with what matters most to you.
