Vadim Belyaev-Making Sense of Money Lingo.

The Visual Guide- in 10 gentle steps: For the full explanation see the published article in Medium

#1 Compound interest is the addition of interest to the principal sum of a loan or deposit, or in other words, interest on interest. It is the result of reinvesting interest, rather than paying it out, so that interest in the next period is then earned on the principal sum plus previously accumulated interest. Compound interest is standard in finance and economics. (Source Wikipedia)

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Compound Interest.

#2 Asset allocation is the implementation of an investment strategy that attempts to balance risk versus reward by adjusting the percentage of each asset in an investment portfolio according to the investor’s risk tolerance, goals and investment time frame. (Source Wikipedia)

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Asset Allocation

#3 Fico Score used by the vast majority of banks and credit grantors, and is based on consumer credit files of the three national credit bureaus: Experian, Equifax, and TransUnion. (Source Wikipedia)

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FICO Score

#4 Net Worth is the value of all the non-financial and financial assets owned by an institutional unit or sector minus the value of all its outstanding liabilities. (Source Wikipedia)

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Net Worth

#5 Capital Gains refer to profit that results from a sale of a capital asset, such as stock, bond or real estate, where the sale price exceeds the purchase price. (Source Wikipedia)

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Capital Gains

#6 Stock Options are contracts which give the buyer (the owner or holder of the option) the right, but not the obligation, to buy or sell an underlying asset or instrument at a specified strike price prior to or on a specified date, depending on the form of the option.(Source Wikipedia)

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Stock Options

#7 Rebalancing is the action / trading strategy of bringing a portfolio that has deviated away from one’s target asset allocation back into line. (Source Wikipedia)

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Rebalancing

#8 Defined Contributions is a type of retirement plan in which the employer, employee or both make contributions on a regular basis.(Source Wikipedia)

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Defined Contribution

#9 Umbrella Insurance refers to liability insurance that is in excess of specified other policies and also potentially primary insurance for losses not covered by the other policies. (Source Wikipedia)

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Umbrella Insuramce

#10 Term Life Insurance is life insurance that provides coverage at a fixed rate of payments for a limited period of time, the relevant term. After that period expires, coverage at the previous rate of premiums is no longer guaranteed and the client must either forgo coverage or potentially obtain further coverage with different payments or conditions. (Source Wikipedia)

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Term Life Insurance

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Vadim Belyaev is an experienced investor, banker, financier, media manager, and philanthropist, and is recognized as a leading Russian businessman.

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