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.
A tax-deferral strategy allowing real estate investors to exchange one property for another.
A contract that provides income in retirement, typically sold by insurance companies. We do not sell annuities as a fee-only fiduciary firm.
How your investments are divided across categories like stocks, bonds, and real estate to balance risk and return.
Allows homeowners to rent their home for up to 14 days per year without paying federal income tax on that rental income.
The total value of investments managed on your behalf by a financial advisor or 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.
Wealth in the form of money or assets used or available for starting or investing in a business.
Profits from selling an investment for more than you paid.
A hybrid retirement plan combining features of a traditional pension and a 401(k), offering tax deferral and large contribution opportunities.
A legal entity established to manage donations and support charitable causes, often offering significant tax deductions for donors.
The original value of an investment, used to calculate gains or losses.
An advanced tax strategy that accelerates depreciation on real estate by reclassifying personal property assets to shorten depreciation schedules.
A financial institution (like Schwab) that holds your investment accounts for safekeeping.
An expense that reduces taxable income, lowering overall tax liability.
A deduction allowing property owners to recover the cost of an asset over its useful life.
Money withdrawn from an investment or retirement account.
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.
The process of choosing and organizing legal business entities (LLC, S-Corp, C-Corp, Partnership) for tax optimization.
The total value of an individual's assets at the time of death, which may be subject to estate taxes.
The process of arranging for the management and distribution of your assets after death.
A diversified investment fund traded on the stock market, often low cost and tax efficient.
An advisor compensated only by the client, not by product sales or commissions.
A professional legally required to act solely in your best interest — with loyalty, care, and transparency.
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.
A financial debt or obligation resulting from borrowing money or other contractual commitments.
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.
Income requiring little to no active effort to earn, often taxed differently than earned income.
All of your investments considered as a whole.
The amount of money you initially invest or borrow.
Property consisting of land or buildings, central to tax strategy through depreciation, cost segregation, and 1031 exchanges.
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.
A retirement account allowing alternative investments such as real estate and private equity, with tax advantages.
Ownership shares in a company.
Preparing for the transfer of business or estate assets.
Selling investments at a loss to offset taxable gains.
The planned use of the tax code to legally reduce tax liability.
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.
Taxes taken directly from employee wages; relevant to payroll strategies.
Let’s build a long-term plan aligned with what matters most to you.
