A fuller guide to this term is on the way. In the meantime, the related terms below explain the ideas around it.
Related MoneyPedia terms
- Risk ToleranceHow much investment ups and downs you can handle emotionally and financially without changing your plan.
- Asset AllocationHow you split your money among stocks, bonds, and cash — the biggest driver of risk and growth.
- Buy and HoldA strategy of purchasing investments and keeping them for years, riding out short-term ups and downs.
- Target-Date FundAn all-in-one investment that automatically shifts to safer holdings as you approach a chosen retirement year.
- Dollar-Cost AveragingInvesting a fixed amount at regular intervals so you buy more shares when prices are low and fewer when high.
- CompoundingWhen your investment earnings themselves start earning returns, causing your money to grow faster over time.
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Plain-English education — not personalized legal, tax, or investment advice.