Podcast Episode 354: Making Sense of the ‘Acronym Salad’ in Financial Planning
In the latest episode of the Money Wisdom podcast, hosts John Stillman and Jake Doser, CFP®, serve up a delicious ‘acronym salad’—a mix of financial terms that often leave even the savviest investors scratching their heads. If you’ve ever stopped to think about what an acronym meant, this episode will help clear up some of the jargon. No matter how experienced you are with money, these acronyms can still cause plenty of confusion that these acronyms can cause.
Let’s start with two you see or hear frequently: ETFs and RMDs. The ETF, or Exchange Traded Fund, is a modern way to invest in a bundle of stocks and bonds, offering an alternative to the traditional mutual fund while RMDs are Required Minimum Distributions, and they impact when and how you’ll pay taxes on your retirement savings.
Then there’s a designation some financial advisors will carry and that’s CFP, or the CERTIFIED FINANCIAL PLANNER™ designation. Jake, a CFP® himself, shares the rigorous training and ethical standards that financial planners must meet to earn this prestigious title. It’s a reminder of the expertise and dedication required to guide clients through their financial journeys, which is why there’s value behind that acronym.
We also talk about CPI, or Consumer Price Index, a term that directly relates to inflation and the cost of living. You might be seeing this one a bit more often right now, but it’s good to understand how this impacts you financially. Healthcare planning is also a part of the conversation with an in-depth look at HSAs, or Health Savings Accounts. Jake explains the tax advantages of HSAs and how they differ from FSAs, or Flexible Spending Accounts. Understanding how to best use these accounts can provide benefit you greatly.
We’ll also touch on lesser-known acronyms like JTWROS (Joint Tenancy with Rights of Survivorship) and FRA (Full Retirement Age), providing clarity on concepts that could have significant implications for estate planning and retirement. This episode of Money Wisdom is a must-listen for anyone looking to gain a better grasp of financial terms and how they apply to personal wealth management.
Here are some of the acronyms we discuss in this episode:
• ETF
• RMDs
• CFP
• CPI
• HSA
• FSA
Information presented in our podcasts is considered current as of the created date. Over time, some information presented may become stale. We recommend you consult with your Financial Professional before making any changes based on information contained here.
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