Glossary

What concerns most clients and individuals is being taken advantage of. To be sure, it’s not uncommon for unscrupulous financial managers to confuse their clients with jargon and hard-to-understand financial procedures. At the Dale Frank Group, we are committed to helping you understand what we do and how we do it. To that end, we have provided a list of some of the most common financial terms and their definitions. If you need more clarification, we would be happy to explain – call or email us with your concerns and questions.

• Assets: Any possession that has monetary value, such as real estate, jewelry, and commodities.

• Individual Retirement Account: An IRA is a personal savings plan that gives tax incentives to individuals saving for retirement.

• Mutual Funds: Diversified securities portfolios that are professionally managed in accordance to a specific investment strategy. Individuals purchase shares of these funds and share in any profits and losses.

• Probate Court: A branch of the judiciary that oversees and carries out the administration of wills and estates.

• Stock: An investment that entitles an individual to an equity share of a corporation’s earnings and assets.

• Taxes:

  • Capital Gains Tax: Levied when an asset is sold for more than it was purchased for, i.e. for a profit.

  • Death Tax: Also known as an estate or inheritance tax, it is levied on the value of an estate after liabilities have been addressed.

  • Social Security Tax: A federal tax levied on both employers and employees. All monies collected are used to fund Social Security and Medicare programs.

• Trust: A fiduciary relationship wherein the party of the first part (you) gives the party of the second part (a specific person or organization) the right to invest assets on behalf of a third party (a spouse or child). They can also be established to provide for charitable organizations.