Glossary of Terms

A dictionary of terms related to investing, financial independence and more.

Adam Says: Have a term you want defined? Let me know and I'll add it here.

1

12b-1 Fee - Marketing and distribution fees charged by the fund. This fee is shown as part of a funds expense ratio. (0 mentions)

4

401 (k) Plan - An employer-sponsored, tax-deferred retirement account. The 2020 contribution limit is $19,500, or $26,000 if you’re at least 50 years old. (54 mentions)

E

Expense Ratio - The expense ratio of a mutual fund or ETF is a measurement of how much the investor pays to keep that fund going. This expense isn’t paid out directly to the fund company, but instead is built into the price of the fund. For example, let’s say a fund invested in the S&P 500 and […] (18 mentions)

F

FI Score - FI Score, or Financial Independence Score, is a score from 0 to 100 of how good a mutual fund or ETF is for financial independence for an investor just getting started. Every fund in the Minafi Fund Directory has an FI Score. FI Score is currently in development. As I’m able to grab more information […] (4 mentions)

N

Net Assets - Net assets refer to the total amount of assets under management for an ETF or mutual fund. The higher the net assets, the more money has been trusted to that fund. Having high net assets doesn’t immediately mean that it is a good fund. There are many funds, like $ABALX for example, that are mostly […] (0 mentions)

P

Platform Score - The platform score is a computed score from 0 to 100 for investment platforms. The goal of the platform score is to highlight platforms that demonstrate continued support for helping people invest for retirement. Since this is specifically for retirement, the metrics we use to score platforms favor those who encourage long-term, diversified, low-fee, tax-optimized […] (277 mentions)

R

Roth IRA - A Roth IRA is a tax-advantaged retirement account for residents of the United States. The main selling point for a Roth IRA is the ability to deposit after-tax money today, invest now, have that money grow, and then withdraw it tax-free you’re at least 59.5 years old. As of 2021, there is a $6,000 a […] (277 mentions)

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