Glossary
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Glossary

  • Active Income:

    Active income is income earned as a direct result of a specific effort. In other words, input is correlated to output.

  • Accredited Investor:

    In the United States, to be considered an accredited investor, one must have a net worth of at least one million US Dollars, excluding the value of one’s primary residence, or have income at least $200,000 each year for the last two years (or $300,000 combined income if married) and have the expectation to make the same amount this year.

  • Alternative Investment:

    An alternative investment refers to any investment which does classify as “traditional”. Traditional investments are widely considered to be stocks, bonds and cash.

  • Amortization:

    As opposed to an interest-only loan in which each repayment installment consists only of interest payments with a single lump-sum principal repayment at the end of the loan period, each repayment installment of an amortizing loan consists of both principal and interest.

  • Appreciation:

    An increase in value is referred to as “appreciation”.