finance QUARTERLY McCarthy

what is VOO ?

low cost ETF for S&P 500

what is the S&P 500 ?

Largest 500 stocks in the United States of America by market capitalization

how do you find market cap ?

price times the number of shares

what is IWM ?

I shares of the Russel 2000

what is the Russel 2000 ?

2000 smallest stocks by market cap in the Russel 3000

what is the Russell 3000

largest stocks by market capitalization in the United States

the wider the base the higher in ?

space

what is the quote by warren buffet

"time in the market is greater than timing the market

the market hates uncertainty but loves

certainty

what is ARKK by cathie woods

is an actively managed ETF, meaning Cathie Wood and her team make ongoing decisions about which companies to buy and sell within the fund.

what is personal finance ?

the study of personal and family resources important for achieving financial success

what is financial literacy ?

knowledge of the facts concepts principles and technological tools used with money

what is financial success?

achievement for financial aspirations

what is the economy ?

system to managing the productive and employment resources of a country, state, or community

what is economic growth?

increasing production and consumption

what is an economic indicator

a statistic that suggest how well the economy is doing now and in the future

what is LEI

leading economic indicator such as the stock market and housing permits

whaat is gross domestic product ?

pro cyclical indicator

what is the business cycle ?

fluctuates in business

expansion

peak (best)

contraction

downturn

trough (worse)

recovery

what is inflation ?

a steady rise in the general level of prices

what is deflation ?

reduction of the general level of prices in an economy.

what is CPI

(consumer price index) a measure of the overall cost of the goods and services bought by a typical consumer

whaat is opportunity cost ?

the chest of a decisions measured by the value of the next best alternative

what is a trade off

Giving up one thing for another

what is tax exempt ?

free from tax at the federal, state or local level (very best kind of income

what is tax sheltered ?

used to lower your income tax liability including taking advantage of tax deduction and leveraging investments ( second very best income)

what is simple interest?

the interest rate you earn on investment in year

what is compound interest ?

occurs when investment is left on deposit so you can earn interest (interest on interest )

what is present value ?

the amount of money that has to be put away to provide money for the future

what is future value ?

investment that will be worth after a period of time

What is the Rule of 72? How is it calculated?

reveals the number of years it takes for the principle to double

72/ interest rate

what is a resume ?

a summary of your qualifications, skills, and achievements

chronological

functional

skills format

what is a cover letter ?

a letter of introduction sent to a prospective employer to get an interview

what is a financial advisor ?

evaluates the finances of an individual or family and recommend strategies set to achieve long term financial goals

suitability ?

advisors can sells securities that generate cash to the advisor if the securities are suitable for the client

What is a fiduciary?

advisor must act in best interest of the client

what is savings ?

money set aside for future use

what are financial records

documents account or indictable or organization financial transaction capturing the flow of money assets, liquidates, and equity of specie period

what is a emergency savings fund?

readily established cash set aside to cover unexpected and unavoidable expenses such as jobless, medical emergencies, sudden home repairs, without having to take out a debt

what is the margin of savings?

refers to profit margin of safety in accounting or business context

whaat is disposable income ?

amount of money indivuals and households have left over after paying mandatory federal state and local taxes

what does " pay yourself first" mean

strategy where you prioritize saving or investing money from your check before paying bills or discretionary spending

what is a budget ?

estimate of income and expenditure for a set period of time

what is employer match ?

employer contributes money into your retirement account based on the amount you contribute from your own paycheck

what is budget variance ?

difference between actual financial results and the budgeted figure for a given period, indicating whether a business is spent more or less than expected or earned more or less revenue

what is a family balance sheet

day to day process of recording and organizing and maintain a business financial transaction to track its finical health

what is an asset

what you own

what is a liability

what you owe

what is bookkeeping

the recording of business transactions

what is the net worth formula

Assets - Liabilities

what is a mortgage

loan used to buy real estate

what is monetary assets?

fixed value in terms of currency units such as cash, bank deposits, and account receivable

what are fixed expenses ?

cost that remained relatively consistent and predictable, not changing significantly regardless of your business or personal activity

what is variable expenses ?

cost that flucautes based on the individual or a business level of activity consumption of external market factors

what is liquidity ?

how easily an asset can be converted into cash without significant lose in value

what is tax planning ?

seeking legal way to reduce or eliminate or defer income taxes

progressive tax

one that requires higher tac rate as the income increases

what is income tax

A government tax charged on what you earn from work or business each year. The amount of income tax you pay is dependant on how much you earn and certain other entitlements and exemptions

what is a 401 k

employer sponsored retirement savings plans that allow employees to invest a portion of their paycheck with contributions often being pre taxed

what is marginal tax rate

the rate at which your last dollar of income is taxed

what is flat tax

a system where all tax payers pay a single fine tax rate regardless of their income level

what is w-2 form

A summary of the income you earned during the year and all amounts the employer withheld for taxes.

what is gross income?

portion of your total income that is reportable on your tax form after taking exclusion

what is adjusted gross income

the result after subtracting adjustments for gross income

what is standard deduction ?

fixed dollar amount that reduces your taxable income as set by the IRS

what is tax liability ?

total amount go tax debt a person or business owes to a government entity

what is 1040

form to file for the apropaite tax year

what is 1040x

form use to amend any of the previous three years

what is April 15th

tax day for all united state citizens

what is tax avoidance

use of tax laws and incentives to reduce a person or company tax liability

what is tax evasion

illegal and international failure to pay or underpay taxes

what is traditional ira

An individual retirement plan set up by the person so they can save money for retirement and receive a current tax break.

what is Roth IRA

tax advantaged retirement saving account where you contribute with after tax dollars

startegies to reduce taxes ?

defer income

accelerate deductions

take all of your legal tax deductions

shift income to a child

buy and manage real estate investment

take a pass through deduction and business income

what are monetary assets

Assets that can be quickly and easily converted into cash(low risk)

what is financial services industry

broad sector that provides economic services to manage money including banking investing and insurance

what is depository institution ?

provides checking and saving account to individuals and business as well as loans

what is commercial and saving banks

insured by deposit insurance fund and regulated by the office of the controller of the currency

what is the fdic

Federal Deposit Insurance Corporation is an independent agency that maintains stability and public confidence in the nationals financial system

how much money does the FDIC hold up to

250,000 limit

what is not insured?

mutual funds

stocking brokerage funds

insurance companies

true or false : checking accounts are accessed through check debit electronic transfers

TRUE

What is minimum balance saving accounts

require that your balance never drops below a certain minimum or fees will be assessed

average balance saving accounts?

requires that your balance for the month must be above a certain amount or fees will be assessed

what is money market account?

depository institution accounts offer higher interest than most savings accounts and limited check writing privileges

What is the annual percentage yield?

reflect the simple interest rate adjusted for frequency of compounding

what is certificates of deposit

purchased in a spefici dollar amount at a specified interest rate and are expected to stay on deposit fir the specefied time period

what is ETF

exchange traded fund. type of investment that holds aa basket of securities

what is EFT

Electronic Funds Transfer. electronic movement of movement in between bank accounts

what is crypto currency

a digital medium of exchange that uses encryption to secure the processes involved in generating units and conducting transactions

what is bitcoin

A digital currency featuring a peer-to-peer network that allows users to send units of the currency to each other online without the use of a traditional institution.

what are examples of electronic money mangement

atm cards

debit cards

credit card

prepaid cards

ebt cards

key fobs and smart cards

saving account pay around

3.5%

If you want to earn more than 3.5% you have to put your money

To work for you

highest to lowest risk in finance ?

crypto (no risk no reward

growth stocks

s and p 500

bonds

savings

if the company goes bankrupt who is the first to be paid back

bondholders

one way to mamaange risk is with

allocation

how many stocks are in America

3500

how do stock pay in

dividends every 90 days

when do bonds pay interest

usually every six months