Tag: savings

Accumulation Period definition explanation

What is Accumulation Period?
1. The phase in an investor’s life when he/she builds up his/her savings and the value of his/her investment portfolio with the intention of having a nest egg for retirement.

2. In the context of a deferred annuity, the period of time when the annuitant is making contributions to the annuity and building up the value of his/her annuity account. This is usually followed by the annuitization phase, when guaranteed payments are paid out to the annuitant for a specified period of time (usually the rest of his/her life). Read more for examples and further explanation including related video clips and also comments
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Asset Management definition explanation

What is Asset Management?
1. The management of a client’s investments by a financial services company, usually an investment bank. The company will invest on behalf of its clients and give them access to a wide range of traditional and alternative product offerings that would not be to the average investor.

2. An account at a financial institution that includes checking services, credit cards, debit cards, margin loans, the automatic sweep of cash balances into a money market fund, as well as brokerage services.

Also known as an “”asset management account”” or a “”central asset account””. Read more for examples and further explanation including related video clips and also comments
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Cash Budget definition explanation

What is Cash Budget?
An estimation of the cash inflows and outflows for a business or individual for a specific period of time. Cash budgets are often used to assess whether the entity has sufficient cash to fulfill regular operations and/or whether too much cash is being left in unproductive capacities. Read more for examples and further explanation including related video clips and also comments
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Drip Feed definition explanation

What is Drip Feed?
1. The process of investing on an ongoing basis in a small but growing firm over a period of time. Essentially, a drip feed results in a startup company receiving capital contributions as the need for capital arises, rather than getting a lump sum capital contribution at the company’s inception.

2. The process of retail investors contributing small amounts of their savings to their investment pool on a periodic basis, such as $200/month, for example. Read more for examples and further explanation including related video clips and also comments
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Lewis Ranieri definition explanation

What is Lewis Ranieri?
Former bond trader and former vice chairman of Salomon Brothers who is credited with introducing securitization to the financial world. Initially, mortgage-backed securities (MBS) were only acknowledged by a handful of states as legitimate investments, but Ranieri’s actions eventually led to federal government measures that supported these securities as a valid investment asset class, leading to the development of the bond market. Read more for examples and further explanation including related video clips and also comments
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Retail Banking definition explanation

What is Retail Banking?
Typical mass-market banking in which individual customers use local branches of larger commercial banks. Services offered include savings and checking accounts, mortgages, personal loans, debit/credit cards and certificates of deposit (CDs). Read more for examples and further explanation including related video clips and also comments
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All Savers Certificate definition explanation

What is All Savers Certificate?
A type of nontaxable certificate of deposit account with a duration of one year that was used primarily by thrift institutions to build funds for mortgage lending. All Savers Certificates were authorized by the Economic Recovery Tax Act of 1981. Read more for examples and further explanation including related video clips and also comments
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