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MARKET DOG
Economic Research & Planning
Annual Percentage Yield (APY)
The true amount of interest paid out based on compound interest for 1 year. This factors in the periodic rate of return and the number of periods within a year.
Annuity
An insurance policy that pays a regular periodic payment to a policy holder. This insurance contract provides income for a period of time or for the duration of a person(s) life.
Appraisal
An estimation of value.
Balance Sheet
A summary of a company's assets, liabilities, and owner's equity.
Beneficiary
A person who can become eligible for payments according to a will, trust, retirement plan, annuity, life insurance, or other contracts.
Consumer Price Index (CPI)
The consumer price index measures the rate of inflation for consumer goods and services in the U.S. economy. The CPI is release by the Department of Labor every month.
Cost of Living Adjustment
(COLA)
Generally referring to the increase in benefit payments received from Social Security payments based on increases in inflation reflected in the consumer price index.
Credit Score
A number that consumers receive that lenders can use to gauge the probability of debt repayment. This number ranges from 300 to 850.
Core Inflation
Whether referring to the CPI or PPI, core inflation takes out volatile food and energy prices.
Creditor
A person or business that a borrower owes money to.
Debt Consolidation
A single loan to combine multiple other debts, generally for a longer period of time.
Deductable
The portion of the loss that is insured that the policy holder is responsible for paying.
Discretionary Income
Income a consumer has left over after covering essential expenses such as food and shelter.
Dollar-Cost Averaging
Investing equal amounts of money at regular intervals of time regardless of the price level.
Fixed-Rate Mortgage
A mortgage on a home with a predetermined fixed interest rate throughout the entire loan period.
Gross Income
A person's total income before any exclusions or deductions.
Growing Equity Mortgage (GEM)
A mortgage that has a fixed interest rate but increasing payments throughout the life of the mortgage.
Hazard
A circumstance that usually increases the probability or severity of loss
Liabilities
A person or business's debts, financial obligations, and potential losses from legal claims.
Passive Income
Income that does not come from active participation in a business. Examples: Investing, writing a book, etc.
Personal Consumption Expenditure
(PCE)
A measurement of inflation that tracks an index of prices for goods and services that changes with how consumer preferences change. This is a changing basket of goods followed. unlike CPI which is a fixed basket of goods.
Premature Distribution
A withdraw from an IRA before the age of 59 and 1/2 usually resulting in a 10% tax penalty.
Time Value of Money
The idea that a dollar in the future is worth more than a dollar today due to the interest earning potential.
Treasury Bills,
Treasury Bonds
Treasury bills are U.S. government debt obligations that mature witinin 1 year. Treasury bonds usually refer to debt obligations of the U.S. government that matures in 10 years or longer.
Treasury Notes
U.S. debt obligations that mature within 10 years or sooner.