Financial jargon simplified: Investing

Doing some homework to understand important jargon can help you navigate investing with confidence.

Financial jargon can be confusing to navigate, for both the ‘new-to-managing-my-finances', and even those who are more experienced at it. If you've ever felt like you need a healthy dose of ‘just the facts', you're in luck.

It's time to feel empowered to own your financial conversations. Brushing up on these terms may help you make more informed, confident decisions in your financial life - ultimately getting you to your goals faster and smarter.

Maybe you've heard you're supposed to, or know you want to, start investing. But putting money at risk can be scary and complicated - especially if investment terms seem like a foreign language.

Trouble is, often times when you search the web, you might find "hot stock tips-galore" before you find simple, just-the-facts style information on investing for beginners. Get a good start on understanding investing options by knowing these key terms.

What now?

Did you know you might already be an investor? If you are putting money a retirement accounts (like a 401k or IRA), the best next step is to know what you're invested in, and whether it's right for you. Look into your retirement accounts and review your "asset allocation" - a fancy way of saying how your money is split up between stocks, bonds, and cash equivalents, and in what amounts.

If you're not an investor yet, check out this guide to investing to feel more prepared to take your first steps. Once you understand the different options for investing, you may better select which accounts (or a combination of a few) are right for you.

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The information in this article was obtained from various sources not associated with State Farm® (including State Farm Mutual Automobile Insurance Company and its subsidiaries and affiliates). While we believe it to be reliable and accurate, we do not warrant the accuracy or reliability of the information. State Farm is not responsible for, and does not endorse or approve, either implicitly or explicitly, the content of any third party sites that might be hyperlinked from this page. The information is not intended to replace manuals, instructions or information provided by a manufacturer or the advice of a qualified professional, or to affect coverage under any applicable insurance policy. These suggestions are not a complete list of every loss control measure. State Farm makes no guarantees of results from use of this information.
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