Let's Get The Lingo Down
When I was first born, I had to learn the meaning of words like heel, sit, roll over, come, etc. As visitors to this site, you need to learn some financial lingo to help get you started. I know it's boring, but you can look at that picture of me at the beach to help keep you motivated. Plus, once you learn the lingo, it becomes easier to understand the future posts.
RIA - Registered Investment Advisor - A person or firm that receives compensation for providing financial advise. RIA's typically get paid based on the assets they manage.
AUM - Assets Under Management - The amount of assets a RIA manages.
Fiduciary - A RIA that puts the best interest of their clients first
ETF - Exchange Traded Fund - a basket of securities that track an index. Typically cheaper than a mutual fund.
Mutual Fund - a basket of securities that tries to outperform an index. Typically more expensive than an ETF.
Index - A basket of securities with a similar characteristic (Small Companies, Indian Technology Companies, Australian Bonds, etc)
Wealth Manager - The sales person you meet with who asks to manage your money
Money Manager - The person or company your wealth manager hires to actually manage your money
Financial Planner - The person who helps you build a plan for your financial future. This plan may help you pay your debts, cut costs, save for retirement. Planners typically offer simple portfolio management options as well. Planners typically get paid a fix sum monthly or yearly.
Equity - Ownership interest in a company, typically in the form of common stock
Fixed Income - A loan to a company which must be repaid with interest
Interest Rate - The rate a you are paid on your deposits
Dividend - The money paid regularly (typically quarterly) by a company to its shareholders.
Don't worry, this is just a start, I will continue to add additional posts with definitions over time.