Page 127 - The Informed Fed--Hearn Wealth Management

Growth stock: The common equity of a company that consistently
grows significantly faster than the economy.

Guaranteed Investment Certificate (GIC): A type of debt security
sold to individuals by banks and trust companies. They usually cannot

be cashed before the specified redemption date and pay interest at a fixed
rate.

Guaranteed lifetime income: Guaranteed lifetime income is money
paid from a pension or an annuity over your lifetime, or the combined

lifetimes of you and your surviving beneficiary.

Guarantor: A third party who agrees to repay any outstanding balance

on a loan if you fail to do so. A guarantor is responsible for the debt only
if the principal debtor defaults on the loan.

Guardian: A person or persons named to care for minor children until
they reach the age of maturity. A will is the best way to ensure that the

person or persons whom you wish to have care for your minor children
are legally empowered to do so in the event of your death.

Home Equity Line of Credit (HELOC): Home Equity Line of Credit
allows a homeowner to borrow against the equity in their home with

specific limits and terms. This is an open-end loan which allows the
borrower to borrow and repay funds as needed.

Home Equity Loan: Home Equity Loan is a collateralized mortgage,

usually in a subordinate position, entered into by the property owner
under specific terms of repayment.

Illustration: A life insurance illustration, or ledger, is a reference tool
used to illustrate how a given life insurance policy underwritten by a

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