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Y
Z
401(k)
A qualified
plan in which employees can contribute pre-tax, up to 15% of their gross
income (up to approx.$11,000), which is then invested in stocks, bonds
or money market instruments. Some employers match a portion of the employee's
contribution.
403(b)
A qualified plan in which employees of public schools and certain tax-exempt or non-profit organizations can contribute pre-tax, up to 15% of their gross income (up to approx.$11,000), which is then invested in stocks, bonds or money market instruments. Some employers match a portion of the employee’s contribution.
404c
Department of Labor Regulation requiring plan sponsors to provide adequate
information and choices so plan participants can make informed decisions about
their retirement plan.
A
AASim
In each
year of each lifetime, we generate a random rate of return based on an
average and standard deviation that you specify. This captures the uncertainty
related to the size of returns and the order in which they are experienced
(i.e. do the high returns come when there's lots of money or little money).
By applying these rates of returns to the anticipated cash flows of the
account, AASim projects what might happen to an investor's portfolio.
Accumulation Phase
The early-to-middle
years of the investment cycle. Attempt to accumulate assets to satisfy
both long-term and short-term needs.
Actual
Dollars
Report
results presented in dollar values that are not discounted for the decreased
spending value over time. For example, for an investor to have $100,000
of spending power 20 years from now it may take $200,000 of actual dollars
just to equal the same spending value. (see Today's
Dollars)
Advisor
(1) An
advisor employed to provide advice on subjects related to investing and
personal financial decisions. See also Financial Advisor. (2) A person
employed to render advice or analysis about securities/investments for
compensation, registered with the SEC under the Adviser's Act of 1940
or their respective state. Does not include attorneys and accountants
who give advice as a part of their professional practice. See also Investment
Advisor.
Advisor
Directory
This
tool enables Investors to search for Advisors on our site by providing
basic information, plus whatever supplemental information the Advisor
wishes to display.
After
Tax
Amount
of money available after deducting the effect of the applicable taxes.
After
Tax Retirement Income
The amount
of spending money needed, net after tax, to provide the investor with
their desired lifestyle. Can be thought of as their annual budget in retirement
or their total planned annual spending in retirement.
Alpha
This concept reflects investment returns in excess of the T-bill rate of return. It is a measure of the value added by portfolio managers through their investment style and analysis.
American
Depository Receipts (ADR)
Certificates of ownership, issued by a U.S. bank representing some degree
of indirect ownership in a foreign company.
Annualized
Return
Also
known as Compound Return, Geometric
Mean and Time Weighted Return. It is the rate of return that when
applied to a present value each year for the appropriate period of time
that produces the anticipated future value at the end of the period. However,
it is only an accurate predictor of future value when cash
flows (deposits or withdrawals) are ignored.
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Annuity
Investment
product into which the investor contributes funds and then elects to receive
payout in a fixed or variable amount, usually at retirement. Funds grow
tax deferred.
Arithmetic
Mean
The sum
of the values divided by the number of values.
Asset
Everything
of value owned, including cash, investments etc.
Asset
Allocation
The blending
of two or more assets in a portfolio which produce a better risk adjusted
return than any of the individual assets would have produced on their
own. (see Risk Adjusted Return)
Asset
Blend
The decided
mix of the individual's or mutual funds Portfolio, usually assets are
divided among large-cap or small-cap stocks/foreign, bonds, or cash/t-bills.
Asset
Mix
The decided
mix of the individual's or mutual funds Portfolio, usually assets are
divided among large-cap or small-cap stocks/foreign, bonds, or cash/t-bills.
Assumption
Risk
The risk
that the assumptions in a financial plan are either over or under stated,
and will produce results not inline with those intended.
Audit
(Historical)
Many
financial plans assume that the investor receives the plan's expected
return assumption each and every year. Since this is highly unlikely and
the total dollars of investment return are dependent on the amount of
money invested at any point in time and the returns received at those
points in time, Historical Audits examine the outcome of a financial plan
based on historical market returns, as they happened, year by year. This
presents the investor with the ability to judge the risks of their financial
plan considering the inconsistency of market returns and is likely more
reflective of the potential results than assuming the same return each
and every year. Average Annual Return Also known as the arithmetic mean,
or the sum of the values, divided by the number of values.
Audit
Letter
Created
to let clients know that their Advisor was willing to make an independent
assessment of the likelihood of their plan meeting their objectives.
Audit
Report
Contains
a detailed report on how the Investors plan will perform, according to
the calculations of financeware tools.
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B
Benefit
Administration
The act
of providing record keeping services for employee benefit plans like participant
account statements and other reporting services.
Benefit
Plans
Employer
sponsored programs providing pensions, 401(k), health and welfare, and
other defined contribution programs.
Beta
Measure
of the sensitivity of a security or Portfolio relative to the overall
market (Systematic Risk).
Blended
Tax Rate
The rate
when applied to total taxable income equals total tax obligation. Averages
all tax brackets as applied to total income. Differs from marginal which
is the rate the next dollar is taxed opposed to the average of all dollars.
Bond
A long-term
contract in which the borrower agrees to make payments of interest and
principle on specified dates to the holders.
Brokerage
Security
transaction executed through a "brokerage firm" or "broker/dealer"
in stocks, bonds, mutual funds, options or other investment securities.
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C
Calculation
Assumptions
The fundamental
math assumptions, or formulas used in a financial planning tool, such
as annualized return, Monte Carlo simulations, etc.
Capital
Gains Tax
The tax,
either short-term or long-term, applied to the proceeds from a sale of
a capital asset.
Capital
Gains/Loss
The profit/loss
from the sale of a capital asset. May be short term (12 months or less)
or long term.
Cash
Flows
Contributions
and withdrawals to an account are referred to as Cash Flows.
Certificate
of Deposit (CD)
Issued
by institutions providing FDIC insurance requiring minimum deposits for
specified periods of time.
Choice
Advisor
To be
a Choice Advisor, your clients must have an average chances of success
of more than 50% for all of their plans evaluated over the last 90 days
(at least three client plans must have been evaluated in that period).
The 90 days allows the system to track whether the Advisor is improving
their clients' chances for success. From the date you entered the third
successful plan, you will become a Choice Advisor.
Comfort Zone
The Comfort Zone is where a client’s investment strategy, goals and lifestyle are balanced at a
level of success that is neither uncertain nor reflective of undue sacrifice on the part of the
client. The Comfort Zone is the core of the Wealthcare process.
Commercial
Banks
A bank
established primarily to accept demand deposits and make short-term loans
to businesses.
Commission
Brokers
Employees
of a member firm, who buy or sell investments for the customers of a firm.
Common
Stock
Equity
investment representing some degree of ownership in company.
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Compound Return
Also
known as Annualized Return, Geometric
Mean and Time Weighted Return. It is the rate of return that when
applied to a present value each year for the appropriate period of time
that produces the anticipated future value at the end of the period. However,
it is only an accurate predictor of future value when cash flows (deposits
or withdrawals) are ignored.
Conditional
Assumptions
Elements
of the financial plan which the investor has little or no control over,
including inflation, taxes and investment returns.
Consolidation
Phase
The middle
years of the investment cycle, where the investor are generally at peak
earnings period and are investing heavily for retirement and estate planning.
Contributions
Money
invested or put into an account.
Convertible
Bonds
A bond
with the added feature that bondholders have the option to exchange the
bond for a set amount of common stock in the company.
Correlation
The degree
to which two or more investments perform in tandem together in the market.
Correlation
Coefficient
Standardized
measure of the relationship between two series.
Cost Basis
Cost basis is that portion of an asset’s current value for which the owner has already paid. The difference between the current value and cost basis is the unrealized capital gain (or loss).
Credit
Risk
The investor's
risk of not receiving back the money or interest payments expected.
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D
Default
Inflation Rate Assumption
Financial
Plans need an inflation assumption to more accurately reflect the spending
needs and amount of money needed to meet the planned obligations. Most
financial planning tools assume that all obligations inflate at the same
rate using one inflation assumption. Our tool can do the same thing by
inputting on the Personal Information page the assumed inflation rate
in the Default Inflation Rate. Then, throughout the plan input screens,
whenever you are asked for an inflation assumption simply select the default
rate. It will automatically be tied to the rate you originally entered
on the Personal Information Page. However, many investors want to presume
differing rates of inflation for differing types of obligations or resources.
For example, they may wish to assume a higher rate of inflation for educational
costs or a lesser rate for pensions or social security benefits. Our tool
automatically defaults to the Default Inflation Rate unless you enter
a different rate for a specific cash flow or obligation. (See Global
Rate)
Deferred
Annuity
An Annuity
where the annuitant allows earnings received into the account during the
accumulation phase to accrue tax deferred until a later date.
Deficit
Amount
of money that is below what is needed.
Diversification
Investment
in several differing securities in the hope of spreading risk and thus
reducing the inherent risks in investing.
Dividends
Distribution
of a company's earnings to shareholders. Declared by the board of directors.
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E
Estate
Taxes
Federal transfer tax brackets and rates which apply to the estate after the death of the holder. Currently
estates are taxed on any amount in excess of $1,000,000. Often portfolios are managed or various estate planning
techniques are employed to reduce this substantial tax burden.
Effective Tax Rate
The rate when applied to total taxable income equals total tax obligation. Averages all tax brackets as applied to total income. Differs from the marginal rate which is the rate at which the next dollar is taxed opposed to the average of all dollars.
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F
Fees
Money
paid to investment advisors or money managers which reduces the expected
total return of the individual's Portfolio.
Fiduciary
A person who supervises the investment Portfolio of a third party and is charged with making investment decisions in line with the owner’s stated objectives. Also may be the personal representative of a deceased, the trustee of a trust, or any other person in a position of legal responsibility and trust.
Financefilemanager
(FFM)
This tool allows you to easily and securely post files directly to financeware.com
for your clients to view.
Financial
Advisor
An Advisor
employed to provide advice on subjects related to investing and personal
financial decisions.
Financial
Plan
A plan
with stated goals and objectives pertaining to current and long-term investment
needs of the individual.
Financial
Planning
Creating
a plan with stated goals and objectives pertaining to the current and
long-term investment needs of the individual.
Financial
Risk
The risk
that the company invested in will not do well, and the stock price will
reflect the disappointing results.
Fixed
Annuity
Insurance
product that provides lifetime retirement income in previously designated
monthly installments.
Fixed
Income Investments
Generally
a preferred stock or debt security (bonds) with an assigned percentage
or dollar income return.
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G
Geometric
Mean
Also
known as the Annualized Return or Compound Return. See Compound
Return.
Gift
Tax
This tax applies to any gift of cash, securities, or other assets over $11,000 per year, per recipient.
Gifting
Stock
Towards
the end of the investment cycle, where excess funds are generally used
to establish trusts, minimize estate taxes, etc.
Global
Rate
Financial
Plans need an inflation assumption to more accurately reflect the spending
needs and amount of money needed to meet the planned obligations. Most
financial planning tools assume that all obligations inflate at the same
rate using one inflation assumption. Our tool can do the same thing by
inputting on the Personal Information page the assumed inflation rate
in the Default Inflation Rate. Then, throughout the plan input screens,
whenever you are asked for an inflation assumption simply select the default
rate. It will automatically be tied to the rate you originally entered
on the Personal Information Page. However, many investors want to presume
differing rates of inflation for differing types of obligations or resources.
For example, they may wish to assume a higher rate of inflation for educational
costs or a lesser rate for pensions or social security benefits. Our tool
automatically defaults to the Default Inflation Rate unless you enter
a different rate for a specific cash flow or obligation. (See Default
Inflation Rate Assumption)
Growth
Stock
Stock
generally thought to generate a higher rate of return than other stocks
with similar risk associated with them due to things such as development
of new products, additional markets etc.
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H
High
Yield Bond
Bond
rated below investment grade by ratings agencies, also called junk bond.
Historical
Audit
Tool
which illustrates how your plan would have performed in history.
Historical
Performance
How an
investor's financial plan would have performed if applied to the actual
market returns on a historical basis in all market periods from 1926 to
now.
Historical
Returns
Returns
of market indices throughout history. They can be either a compound return
for a long period of time which is useful in measuring values presuming
there are no contributions or withdrawals or they can be individual year
by year returns which is necessary if there were contributions or withdrawals.
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I
Individual
Retirement Account (IRA)
In 2002-2004, individuals may contribute the lower of $3,000 or 100% of their earned income annually to these tax-deferred accounts, and these contributions may be tax deductible. Note that individuals over age 50 may contribute up to $3,500 in 2002-2004.
Inflation
Assumptions
for adjusting savings or retirement distributions based on estimated salary
increases or cost-of-living adjustments.
Initial
Public Offering (IPO)
The first offering of stock of a company to the public.
Interest
Rate Risk
Risk
that if interest rates changed, securities bought for the fixed income
feature, (such as bonds and preferred
stock) will move in the opposite direction.
Investment
A current
commitment of money for a period of time, to obtain future payments or
wealth to compensate the investor for the time the funds were committed,
inflation and uncertainty of repayment.
Investment
Advisor
A person
employed to render advice or analysis about securities/investments for
compensation, registered with the SEC under the Adviser's Act of 1940
or their respective state. Does not include attorneys and accountants
who give advice as a part of their professional practice.
Investment
Expenses
The net
cost of investing assets. Includes investment manager fees, 12b-1 fees,
brokerage commissions and other investment expenses. Usually expressed
as a annual percentage of total investment assets so that a 2.2% investment
expense would reduce a gross investment return from 10.0% to 7.8%.
Investment
Horizon
Period
of time used in planning and forecasting when the investor will require
the invested funds.
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K
Keogh
Plan
Tax saving
retirement program for self-employed people and their employees.
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L
Large-Cap
Stock
Stock
(ownership) in a company that has a total market value of all of their
stock (market capitalization) which is larger than most. Usually considered
several billion dollars.
Length
of Plan
The investor's
life expectancy, or how long they plan for their retirement assets to
last.
Liquid
An asset
that can be quickly converted to cash at close to fair-market value.
Liquidity
The ease
with which investors can convert their securities into cash, or vice-versa.
Long-Term
Capital Gain
If the
holding period for the investment is over 12 months, the capital gain
is taxable at a lower long term capital gains tax rate.
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M
Management
Fee
Compensation
paid to an investment management company, average annual fee typically
about 0.5% to 1.5% of fund assets.
Marginal
Tax Rate
The tax
rate upon which the next dollar of earnings will be taxed.
Market
Risk
The uncertainty
that a particular security's price may fluctuate solely due to investors'
sentiment in the market, also called Systematic
Risk.
Mean
Return
The simple
average of the returns. The sum of the returns divided by the number of
returns.
Modern
Portfolio Theory (MPT)
A theory of investing that presumes that investors are risk averse and
to the extent they assume risk as measured by standard deviation they
expect annualized returns over the risk free rate of return.
Money
Market
Portfolios
of high-quality, short-term securities. High liquidity and superior returns,
an alternative to bank savings accounts.
Monte
Carlo
The statistical
generation of random possible returns for any given time period based
on a statistically assumed distribution of returns.
Mutual
Funds
Investment
company that pools money from shareholders and invests in a variety of
stocks, bonds and money market securities.
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N
Net Asset
Value (NAV)
Market value of an investments company's assets after deducting
liabilities and dividing by the number of shares outstanding.
Net
Worth
The amount
by which a person's total assets exceeds total liabilities.
No-Load
Fund
Mutual
fund that sells shares at net asset value without adding sales charges.
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O
Objectives
Mutual
fund that sells shares at net asset value without adding sales charges.
Option
Contract
Agreement
grants the owner the right, not the obligation, to a future transaction
regarding the security, at a fixed price.
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P
Participant
An employee
that is currently a member of an employer sponsored benefit plan.
Participant
Accounting
Record
keeping for an employer sponsored benefit plan for a particular employee.
Pension
Plans
Plans
for employees of some corporations or government entity where the employer
is obligated to provide either annual contributions or an annual benefit
to the participant at retirement.
Percentile
Rankings
The %
Rankings Screen in the results report allows you to see the majority of
the actual results of the back-testing of the different rolling periods.
This screen was designed to give you an idea of the periods in which the
plan actually would have achieved the goal or value at plan end.
Performance
Investment
results measured in percentage returns. If there are no contributions
or withdrawals annualized or compound returns may be used to measure the
dollar amount of investment return. If there are contributions or withdrawals,
the dollar amount of investment return is dependent on the individual
returns year by year as applied to the value of the Portfolio each year
as impacted by contributions or withdrawals.
Plan
Bids
Investors
can submit plans for Advisors to bid on and review the bids Advisors return
to them before accepting a plan and/or an Advisor.
Plan
List
The Plan
List displays all of the Investors Working and Reporting Plans and the
Retirement Quizzards they have created.
Planned
Annual Savings
All annual
savings, including employer contributions.
Planning
The act
of contemplating objectives, desires and variables to accomplish an objective.
Example would be current investments, rates of returns and retirement
income desired for an individual's financial plan.
Portfolio
A group
of securities held by an investor, may include stocks, bonds, preferred
stock, cash, etc.
Portfolio Optimization
The attempt
to blend assets to achieve a compound return that is more efficient (either
higher return for the assumed risk or lower risk for the assumed compound
return). Since it is based on compound rates of return it is only accurate
when applying it to Portfolios that have no contributions or withdrawals
even if the exact assumptions are met.
Preferred
Stock
Equity
investment with a stated dividend payment.
Price/Earnings
Ratio (P/E)
A company's stock price divided by earnings per share.
Probability
Analysis
Probability
analysis is the process of determining the odds that a plan will achieve
certain goals instead of just calculating one, overly simplistic, ending
value. In other words, instead of giving one possible scenario with one
result, it generates many possible scenarios from which the probability
of achieving a given result is determined. Because we can’t see into the
future, this is a much better method of financial planning.
Prospects
Potential
clients; You can view plans submitted to you by Investors interested in
retaining your services by clicking on the Prospects tab on your account
screen.
Proxy
Investors
can allow other users to have access to their account by creating a "Proxy
Investor". This does not create a separate account; it merely creates
a second user name attached to the same account. The Proxy will be able
to view the Investor's information in much the same way the investor does.
An Advisor can create a "Proxy Advisor" to give another person
access to your account. When they log in to the system, they will see
a display of all the Advisor accounts to which they have access.
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Q
Quizzard
Also
called the Retirement Planner, this tool,
which is a small version of our full Professional
Wealth Manager, allows you to create plans. It allows you to quickly
calculate the probability of meeting your retirement goals using our Historical Audit
tool. In order to save the plans, you must create a user account.
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R
Real
Estate Investment Trust (REITS)
Investments funds that hold Portfolios of real estate investments.
Realized
Capital Gains
Taxable
capital gains that have resulted from the sale of an appreciated asset.
Referral
Code
In some
cases you may have been referred by an existing user and have been given
a referral code. If not, simply leave the field requesting this information
blank.
Reporting
Plans
These
are plans that an Advisor has saved and protected from changes. You can
make a copy of a Reporting Plan for viewing, but the original can not
be altered. Plans can be moved to the reporting section by clicking the
"Move to Reporting" button. To make a copy, click the "Copy"
button next to the plan you would like to view.
Retirement
Period
of time when one no longer actively works for compensation and lives based
on the resources they have accumulated prior to retirement.
Retirement
Age
The age
at which the individual plan to stop working, and is generally when the
contributions to tax deferred accounts stop and withdrawals from accounts
begin.
Retirement
Income
The amount
of income needed, on an annual basis, to live once the investor has retired.
Can be pretax (the amount needed for spending plus the taxes due on that
amount) or after tax (the amount needed for spending to meet their lifestyle
excluding taxes).
Retirement
Plan
Either
an individual's unique plan for meeting their retirement obligations OR
an employer sponsored tax advantaged program to accumulate assets for
retirement of the plan's participants. The act of planning to meet one's
desired retirement financial objectives.
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Risk
Uncertainty
that an asset will earn its expected rate of return, and is generally
measured using standard deviation.
Risk
Adjusted Return
The return
for each incremental degree of risk taken, often used in reference to
measures of a portfolio's standard deviation.
Risk
Averse
Assumption
that if all else is equal, investors will choose the least risky alternative.
Risk
Management
Making
investment decisions to manage the general risk associated with the individual's
methods of investing.
Risk
Premium
The premium over the market's risk free rate that investors demand as compensation for an investment's uncertainty.
Roth
IRA
Retirement
account that allows certain individuals to take after tax money and invest
it tax deferred until retirement and also distribute retirement income
free of taxation.
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S
Securities
Any bond,
note, stock, investment contract, etc.
Sharpe
Ratio
The return
per unit of standard deviation. Can be thought of as risk adjusted return.
Short-Term
Capital Gain
If the holding period on an investment is 12 months or less - short term - any realized capital appreciation is taxable as ordinary income.
Small-Cap
Stock
This reflects stock ownership in a company where the total value of outstanding stock is smaller than the majority of publicly owned companies. Typically, a small-cap company has less than one billion dollars in stock outstanding.
Social
Security
Government
sponsored program to provide basic pensions and disability income for
U.S. citizens.
Spousal
IRA
A working spouse may contribute to an IRA for a non-working spouse up to a maximum of $3,000 annually for 2002-2004, only where the couple is filing jointly. For persons over age 50, the limit on contributions for 2002-2004 is $3,500.
Standard
Deviation
A mathematical
calculation that produces a number which measures the extent and frequency
to which a series of investor returns varies from the average/mean of
all returns. Calculated by taking the square root of the squares of the
deviations from their mean.
Statistics
The science
of collecting, organizing, presenting and analyzing numerical data to
assist in making an effective decision.
Stocks
Certificates
representing ownership in a corporation, may pay dividends and value/price
may appreciate or decline in value.
Surplus
Funds
available beyond what is needed.
Systematic
Risk
The uncertainty
that a particular security's price may fluctuate solely due to investors'
sentiment in the market, also called market risk.
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T
Target
Asset Allocation
The long
term strategic asset allocation for an investment Portfolio.
Tax
Amount
paid to either the federal, state of local governments for income earned
through either wages or the realized appreciation of investments.
Tax
Deferred Accounts/Holdings
Accounts
to which contributions are made and asset appreciation is not taxed until
withdrawals are made. Accounts include 401(k), IRA, SEP, Roth and Pensions.
Tax
Planning
Management
of an investor's Portfolio to minimize the impact of taxes on the Portfolio's
returns.
Taxable
Accounts
Accounts
which are currently subject to taxes on the realization of an appreciated
asset and investment income. Accounts include brokerage accounts, mutual
funds, bank accounts, money market accounts, etc. that are not held as
part of a tax deferred program like IRA or 401(k).
Today's
Dollars
Results
of plan presented in dollar values that has been discounted for the impact
of inflation. Allows the investor to see future plan results based on
the spending power of a money today presuming an assumed inflation rate.
For example, $100,000 of current spending needs would be represented as
$100,000 of Today's Dollar spending need 20 years from now even if the
amount in Actual Dollars is $200,000. (see Actual
Dollars)
Total
Return
Investor
return objective to meet the future monetary needs. Includes increases
in Portfolio value and Portfolio income.
Treasury
Bill
U.S.
government security with a maturity of under one year. Pays no interest,
but yields the difference between its par value and its discounted purchase
price.
Treasury
Bond
U.S.
government security with a maturity of more than 10 years. Pays interest
periodically.
Treasury
Note
U.S.
government security with maturates between 1 and 10 years. Pays interest
periodically.
Trial
Account
The trial accounts for our various desktop and online applications allow you to explore how
they can help you, as either an Investor or Advisor, to create strong financial plans. Simply
go to the home page and click on "Sign Up Today."
Turnover
The rate capital appreciation is realized in each year.
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U
Unrealized
Capital Gains
Capital
gains reflected in the appreciation of a currently held unsold asset.
Taxes on unrealized capital gains can be deferred indefinitely.
Unsystematic
Risk
Unsystematic risk is risk that is unique to each particular asset. It is generally thought that diversification of the portfolio can lessen the effects of unsystematic risk.
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V
Variable
Annuity
Investment
tool that defers taxes on the investment's growth until the investor's
retirement or the withdrawal of the funds. Unlike a fixed annuity, the
funds are invested in a separate account selected by the investor and
have a variable growth and variable payout, whereas the payout of a fixed
annuity is fixed. The variable payout depends on the actual return in
the separate account chosen.
Variable
Assumptions
The personal
inputs into the financial planning tools including retirement age, planned
annual savings etc.
Volatility
The extent
to which the value of an investment changes. Often used as a description
of risk and measured as Standard Deviation.
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W
Warrant
Allows
holder to purchase a specified number of shares of stock from the company,
at both a specified price and time window.
Wealthcare
Wealthcare is a unique advisory process specifically designed to avoid unnecessary investment risk while confidently achieving client goals without undue sacrifice to their lifestyle.
WealthSimulator®
Simulates
a variety of possible outcomes for your plan utilizing randomized historical
data.
Withdrawals
Money
taken from an account or investment.
Wizard
Also
called the Professional Wealth Manager, this is the full
version of the calculation tools for trial users. It collects
financial data and analyzes a person's portfolio in three possible ways,
depending on what tools you select while using your trial account or on
what tools you have purchased. The Professional Wealth Manager calculates
the probability of your plan's success using the Historical Audit. Once
you create an account, you can use this tool, as well as WealthSimulator® and Monte Carlo. The Retirement Planner is
a shorter version of this tool.
Working
Plans
These
are plans that both the Advisor and Investor can access once either is
logged into the site. To create a new working plan, click the Add New
Plan button.
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Y
Yield
The yield derived from a portfolio or an individual asset represents the growth attributable to income as opposed to capital appreciation.
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Z
Zero
Coupon Bond
A bond
that pays no periodic interest payments, but instead, pays its par value
at maturity. Yield is determined by the difference in par value and its
discounted purchase price.
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