Financial Jargon

Although we cannot be sure if or when the changes will come, taking the wait-and-see approach may be more costly than ever, given how quickly things can shift.

As Ryan bids farewell to Oakmont and Financial Jargon, David and Ryan share some lessons they've learned about helping people with their finances. We share four financial tips that run common to those that have more confidence with their finances. Lean in, and learn. www.oakmontadvisory.com [www.oakmontadvisory.com]

A digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank. - Oxford Dictionary Essentially it is a largely unregulated alternative form of money. What is “blockchain?” --- a digital ledger in which transactions made in bitcoin or another cryptocurrency are recorded chronologically and publicly. - Oxford Why does talking about this matter? What does it have to do with financial planning? Unless you literally live under a rock, you have heard of cryptocurrency. You have probably heard a lot about it from people with very strong opinions on one end of the spectrum or the other, which can make understanding what is really confusing. “Cryptocurrency is best thought of as digital currency (it only exists on computers). It is transferred between peers (there is no middleman like a bank). Transactions are recorded on a digital public ledger (called a “blockchain”). Transaction data and the ledger are encrypted using cryptography (which is why it is called “crypto” “currency”). It is decentralized, meaning it is controlled by users and computer algorithms and not a central government. It is distributed, meaning the blockchain is hosted on many computers across the globe. Meanwhile, cryptocurrencies are traded on online cryptocurrency exchanges, like stock exchanges. Bitcoin (commonly traded under the symbol BTC) is one of many cryptocurrencies; other cryptocurrencies have names like “Ether (ETH),” “Ripple (XRP),” and “Litecoin (LTC).” Alternatives to Bitcoin are called “altcoins.”” - Cryptocurrencyfacts.com Need help with a financial plan? oakmontadvisory.com/blueprint [www.oakmontadvisory.com/blueprint]

A Monte Carlo simulation is a model used to predict the probability of different outcomes when the intervention of random variables is present. Monte Carlo simulations help to explain the impact of risk and uncertainty in prediction and forecasting models. - Investopedia Why does talking about this matter? What does it have to do with financial planning? * If you have financial goals (short or long term) you likely want to know the chance of actually being able to reach those goals. A Monte Carlo simulation or analysis can give you one of the best insights into your goals, like not running out of money in retirement. Need help? OakmontAdvisory.com [www.oakmontadvisory.com]// FinancialJargon.com [www.financialjargon.com]

The rate of return, ROR, or return, in the world of investments, is the profit or loss you make on an investment. - marketbusinessnews.com Why does talking about this matter? What does it have to do with financial planning? * If you have financial goals (short or long term) you likely have investments tied to those goals. * Having a good idea of what you might expect from these investments over time is helpful in making sure you are on track, but be aware because, like Transformers, there’s more than meets the eye. Need a plan - visit oakmontadvisory.com [oakmontadvisory.com]or smplwealth.com [smplwealth.com]