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Financial Glossary

March 15, 2022

We have compiled a glossary of common terms to help you along your financial journey.

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401k
A type of retirement savings plan offered by employers. 401k plans enable employees to divert a portion of their compensation into an account owned by the employee and intended for retirement purposes.
401k Contribution
The amount of money employees take from their paycheck and invest in their 401k account.
A
Active Management
A hand-on, strategic investment approach that seeks to outperform a benchmark. In contrast, passive management is an investment approach that intends to mirror the performance of a specific benchmark.
Alternative Investments
Financial assets that fall outside of conventional categories like equity (e.g., stocks), fixed income (e.g., bonds) or cash.
Asset
Property that has financial value now or is expected to in the future.
Asset Allocation or Asset Mix
The breakdown of all of the investments (such as equity, fixed income, alternative investments, and cash) in a portfolio.
B
Bottoms-Up Research
A research approach that focuses on the characteristics of individual investments versus high-level market trends.
C
Corporate Retirement Plan
A retirement plan offered by employers to their employees. There are many different types of corporate retirement plan structures, including, but not limited to, 401k, 403b, 457, SIMPLE IRA, SEP IRA, and non-qualified deferred compensation plans. Each plan has different features intended to fit employers’ unique goals, employee base, and budget.
E
Equity
A form of ownership in a company, including shares of stock.
Existing Balances
The investments held in an account or portfolio today.
F
Fiduciary Requirements
A fiduciary is a person or entity legally bound to act in your best interest.  Certain types of corporate retirement plans require employers to undertake fiduciary duties on behalf of employees as specified by the Employee Retirement Income Security Act (ERISA). Refer to ERISA for a list of the current fiduciary requirements.
Financial Goals
Short-term, intermediate-term, and long-term objectives that clients would like to achieve in their financial plan.
Financial Instruments
Assets that can be traded.
Financial Planning
The process of developing strategies that bridge a person’s or family’s current financial situation and their longer term financial goals.
Fixed Income
A type of investment that pays fixed interest or dividend payments until the investment matures.
G
Generational Wealth Transfer
How families pass accumulated wealth from one generation to another.
I
Income
Money received, typically on a recurring basis, from work or investments.
Income Tax Deferral
The act of delaying payment of income taxes to a future date.
Independent Financial Advisor
Financial advisors that do not work for a larger financial institution such as a bank or insurance company. Consequently, they are not confined to certain financial products when proposing solutions for their clients.
Investment
An asset purchased with the objective of producing income or gains from that asset.
Investment Lineup
The list of investments offered to corporate retirement plan participants.
Investment Management
The act of researching, selecting, buying and selling investments on behalf of clients.
L
Liabilities
Money owed to someone else.
Liquidity Needs
How quickly a client needs or wants  investments converted into cash.
M
Market Views
Opinions developed on current conditions and the projected trajectory of financial markets, including opportunities and risks.
Money Managers
A person or team that oversees investment portfolios on behalf of clients.
P
Portfolio
A collection of financial investments, whether owned in a single account or multiple accounts as part of a household or organization.
Portfolio Construction or Management
Combining different investments with different weightings to achieve a target risk and return profile.
Portfolio Structure
Combining different account types (e.g., retirement accounts, taxable accounts, charitable accounts) for specific purposes supporting a client’s financial plan.
Pre-Tax Retirement Account
A retirement account in which an employee contributes money from their paycheck before tax.  Taxation occurs when the funds are withdrawn from the account.
R
Return Objectives
The amount of income and gains a client seeks to earn.
Risk Tolerance
The amount of volatility a client is able / willing to stomach.
Roth Retirement Account
A retirement account in which an employee contributes money from their paycheck after tax.  Taxation occurs before the funds are deposited in the account, and no taxes are paid upon withdrawal.
T
Tax Position
A client’s current and anticipated tax burden, including, but not limited to, employment status, tax bracket, and investment gains.
Time Horizon
The amount of time a client plans to stay invested in an account or portfolio before needing the money for other purposes.
Top-Down Research
A research approach that focuses on high-level market trends versus the characteristics of individual investments.

Filed Under: Financial Resources

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3033 Kettering Blvd.
Suite 326
Dayton, OH 45439

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Disclosures: OneSeven (“OneSeven”) is a registered investment adviser with the U.S. Securities and Exchange Commission (SEC). Registration with the SEC does not imply a certain level of skill or training. Services are provided under the name ClientFirst Financial Strategies (“ClientFirst”), a DBA of OneSeven. Investment products are not FDIC insured, offer no bank guarantee, and may lose value.

This website is intended to provide general information about OneSeven and its team. It is not intended to offer investment advice or to recommend the purchase or sale of any investment product. Information is provided to learn about our advisory services and our people, as well as to contact us for further information.

Market data, articles, and other content on this website are based on generally available information and are believed to be reliable. OneSeven does not guarantee the accuracy of the information contained on this website. The information is of a general nature and should not be construed as investment advice.

OneSeven will provide all prospective clients with a copy of our current Form ADV, Part 2A (“Disclosure Brochure”) and the Brochure Supplement for each advisory person supporting a particular client. You may obtain a copy of these disclosures on the SEC website at https://adviserinfo.sec.gov, or you may Contact Us to request a copy.

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