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What are Equities? Equities are shares issued by a company which represent ownership in the company. Ownership of property, usually in the form of common stocks, as distinguished from fixed-income securities such as bonds or mortgages. Stock funds may vary depending on the fund’s investment objective. { "@context": "https://schema.org", "@type": "DefinedTerm", "@id": "DefinedTerm", "name": "Equities", "description": "Equities are shares issued by a company which represent ownership

What is Impact Investing? Impact investing is the process of aligning various preferred values with the generation of financial returns. There are a number of ways investors choose to approach impact investing, all largely dependent on what values investors choose to align with. While the most commonly understood use of impact investing is an emphasis on support for environmentally-friendly investments, other themes include: { "@context": "https://schema.org", "@type": "DefinedTerm", "@

What is a Trust? A trust is a legal relationship where the owner, or trustor, gives another party, the trustee, the right to hold title to property or assets for the benefit of a third party, the beneficiary. A trust is traditionally used for minimizing estate taxes and offers other benefits as a part of an estate plan. { "@context": "https://schema.org", "@type": "DefinedTerm", "@id": "DefinedTerm", "name": "Trust", "description": "A trust is a legal relationship where the owner, o

What is RMD Required Minimum Distributions (RMDs) are withdrawals that the IRS requires you to take from tax-deferred accounts (such as IRAs) each year. These withdrawals can be done in a lump sum, or can be taken out gradually over the year, but the RMD must be reached by December 31st of that year. You must begin taking RMDs by April 1st of the year following your 72nd birthday and then annually thereafter. The RMDs are taxed at ordinary income tax rates. See more about RMDs on the

Margin Lending Definition Margin lending is the practice of borrowing money from a brokerage account while leveraging investment assets as collateral for the loan. { "@context": "https://schema.org", "@type": "DefinedTerm", "@id": "DefinedTerm", "name": "Margin Lending", "description": "Margin lending is the practice of borrowing money from a brokerage account while leveraging investment assets as collateral for the loan." "inDefinedTermSet": "https://www.wealthspire.com/financial

Diversification Definition Diversification is the process of owning different investments that tend to perform well at different times in order to reduce the effects of volatility in a portfolio, and also increase the potential for increasing returns. { "@context": "https://schema.org", "@type": "DefinedTerm", "@id": "DefinedTerm", "name": "Diversification", "description": "Diversification is the process of owning different investments that tend to perform well at different times in

What is Power of Attorney POAs are legal documents that allow you to name an “agent” (also sometimes referred to as an “Attorney-in-fact”) to act on your behalf for financial or health care decisions and are key components of any estate plan. This agent is expected to place the principal’s interests ahead of his or her own, which is why it is important to pick a trustworthy agent. { "@context": "https://schema.org", "@type": "DefinedTerm", "@id": "DefinedTerm", "name": "Power of Attor

Volatility Definition Volatility is the amount and frequency with which an investment fluctuates in value. A volatile market gives traders opportunities to make money quickly, but also leaves room to lose money quickly as well. { "@context": "https://schema.org", "@type": "DefinedTerm", "@id": "DefinedTerm", "name": "Volatility", "description": "Volatility is the amount and frequency with which an investment fluctuates in value. A volatile market gives traders opportunities to make

What is a 401(k) Retirement Plan? A 401(k) is an employer-sponsored retirement plan that allows employees to defer a portion of their wages to individual accounts. Generally, contributions to the plan are made on a pre-tax basis. However, some employer-sponsored plans allow for after-tax, or Roth 401(K) deferrals. Employers may also match their employees’ 401(K) deferrals up to a certain amount. Annual contributions are typically limited up to a maximum amount allowed by the IRS. { "@contex

In this letter: Monetary and fiscal policy remain very accommodative, translating to elevated valuations across markets. A new industry catchword for 2021. Risk tolerance should not be forgotten when times are good. As financial asset classes continue to exhibit strong risk on characteristics, there is emerging tension between the fuel supporting such risk taking (strong) and the valuations of both equities and fixed income (expensive). The Federal Reserve remains exceedingly accommodative,