Skip to login Skip to main content

Invest Glossary

Automatic rebalancing

As markets naturally fluctuate, we automatically adjust your portfolio to ensure it stays aligned with your asset allocation and investment goals. There is no fee for automatic rebalancing.

Direct rollover

A direct rollover means funds move from your workplace retirement plan directly to your IRA without you receiving them in between.


The strategy of spreading investments across a number of different securities to reduce the risk of putting all your eggs in one basket.

Exchange-Traded Fund

An exchange-traded fund (ETF) is a more diversified investment that trades like a stock but pools the money of many investors to purchase a group of assets such as stocks, bonds, foreign currency or commodities. Some of the most popular ETFs offer a type of index investment, where the manager seeks to track the performance of a specific index such as the Dow Jones or S&P 500.

Index Fund

This is a collection of securities designed to track or match a section of the market, such as the S&P 500.

Liquid Assets

This includes cash in bank accounts, stocks, bonds and other assets that are easily converted into cash.

Margin Call

A margin call occurs when a security loses value beyond the limit set by the broker and you’re required to pay the difference or sell securities to cover the losses.

Municipal Bonds

Municipal bonds are issued by states, cities, counties and other government entities below the federal level in order to raise money for public improvements and services. These bonds are typically exempt from federal income taxes and, in some areas, state and local taxes. Municipal bonds are typically considered to involve more risk than treasury bonds, but less risk than corporate bonds. Income for some investors may be subject to the Federal Alternative Minimum Tax (AMT). Please consult your tax advisor regarding your specific financial situation.

No-Load Mutual Fund

This type of mutual fund doesn’t charge a fee, or load, for its purchase or sale.


The spread is the difference between the bid and the ask of an investment. The difference between the bid and the ask is the cost of investment for the trader.

Tax Efficiency

An attempt to minimize tax liability when given many different financial decisions.

A financial decision is said to be tax efficient if the tax outcome is lower than an alternative financial structure that achieves the same end.

Tax-deferred Growth

Tax-deferred growth means that funds within your IRA can grow without being taxed until you take a distribution (withdrawal) out of the IRA. This is the kind of growth possible with a Traditional IRA.