Bond – A bond is a promise to repay debt(principal) along with interest (coupons) on a specified date (maturity).
Municipal “Muni” Bond – Bond issued by a state, city, or local government. Interest on municipal bonds is generally exempt from federal tax, state and local tax.
Stock – An instrument that signifies an ownership position (called equity) in a corporation, and represents a claim on its proportional share in the corporation’s assets and profits.
IRA – Individual Retirement Account. A tax deferred retirement account for an individual.
Roth IRA – A newer type of IRA, established in the Taxpayer Relief Act of 1997, which allows taxpayers, subject to certain income limits, to save for retirement while allowing the savings to grow tax-free.
529 Plan – An investment vehicle designed to help parents fund their child’s college education.
Life Insurance – An insurance policy that provides benefits upon death.
Long Term Care Insurance – An insurance policy that provides benefits for the chronically ill or disabeled over a long period of time.
Investments Are Not FDIC InsuredMay Lose ValueNo Bank or Credit Union Guarantee