Financial Planning & Monetary Policy — Quick Reference Notes

Professional Financial Planner

A person or firm that helps clients establish financial goals, develop, and implement financial plans to achieve those goals; may not always act in your best interest due to potential conflicts.

Upselling

The act of pushing additional products or services to clients, which may not always align with their best interests.

Federal Reserve

An independent entity separate from the federal government that sets monetary policy to manage liquidity and reserve requirements, influencing economic stability.

Federal Funds Rate

The target rate set by the Federal Reserve for banks to charge each other for overnight lending, impacting other borrowing costs like treasury rates.

30-year Mortgage

A common loan term for home purchases, typically involving 360 total monthly payments over 30 years.

Money Mindset

The approach of leveraging money to work for you through prudent saving and investing, rather than solely relying on salary for wealth-building.

Compounding Growth

The process where initial savings and accumulated interest earn interest over time, leading to substantial wealth accumulation, even with small, regular savings.