Page 126 - The Informed Fed--Hearn Wealth Management

Federal National Mortgage Association (FNMA or Fannie Mae):

FNMA is a private corporation that acts as a secondary market investor
in buying and selling mortgage loans.

Fiduciary: An individual or institution occupying a position of trust. An
executor, administrator or trustee.

Financial planner: A person who helps you plan and carry out your
financial future.

Fixed investment: Any investment paying a fixed interest rate such as
a money market account, a certificate of deposit, a bond, a note, or a

preferred stock. Fixed investment is the opposite of a variable
investment.

Fixed rate mortgage: With a fixed rate mortgage your interest rate will
remain the same for the entire term of the loan. Although the rate will

begin slightly higher than a comparable Adjustable Rate Mortgage
(ARM), the interest rate you pay can never go up for as long as you have
the mortgage.

Full retirement age: Full retirement age is the age at which you qualify

to collect your full Social Security benefit. It is scheduled to increase from
65 to 67 in two-month increments. For example, people born in 1942
must be 65 and 10 months to reach full retirement age.

Fund of Funds: See Life Cycle Fund definition.

Group Insurance: A form of insurance designed to insure classes of
persons rather than specific individuals.

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