Page 130 - The Informed Fed--Hearn (edited 10.29.20)

Investment risk: The chance that the actual returns realized on an
investment will differ from the expected return.

Investment strategy: The method used to select which assets to include
in a portfolio and to decide when to buy and when to sell those assets.

IRA: Individual Retirement Arrangement, also known as an Individual
Retirement Account

Jumbo loan: A loan that is larger than the limits set for conventional
loans by the Federal National Mortgage Association (FNMA) or Federal
Home Loan Mortgage Corporation (FHLMC).

Junk Bonds: A bond that pays an unusually higher rate of return to
compensate for a low credit rating.

Keogh: A Keogh is a tax-deferred retirement plan for self-employed
individuals and employees of unincorporated businesses. A Keogh plan
is similar to an IRA but with significantly higher contribution limits.

Lien: A lien represents a claim against a property or asset for the
payment of a debt. Examples include a mortgage, a tax lien, a court
judgment, etc.

Life Cycle Fund: Life Cycle Fund, sometimes called a fund of funds, is
a package of individual mutual funds that a fund company puts together
to help investors meet their objectives without having to select a
portfolio of funds on their own. Some companies offer a set of three to
five separate life cycle funds, each with a different level of risk and
potential for return. You can choose from among them the specific

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