Dictionary

Financial dictionary - key financial terms explained in plain language.

25x Rule — How Much You Need for Financial Independence

The 25x rule of expenses in the FIRE movement. How to calculate the amount needed to achieve financial independence and where this rule comes from.

Read more →

25x Rule — How Much You Need for Financial Independence

The 25x rule of expenses in the FIRE movement. How to calculate the amount needed to achieve financial independence and where this rule comes from.

Read more →

4% Rule — What is it? Safe withdrawal rule in FIRE

The 4% rule is a rule determining the safe level of annual withdrawals from an investment portfolio in retirement. Learn its assumptions, criticism, and alternatives.

Read more →

4% Rule — What is it? Safe withdrawal rule in FIRE

The 4% rule is a rule determining the safe level of annual withdrawals from an investment portfolio in retirement. Learn its assumptions, criticism, and alternatives.

Read more →

60/40 Portfolio — What It Is and Whether It Still Works?

The 60/40 portfolio is a classic investment strategy: 60% stocks, 40% bonds. Learn how it works, its advantages, and whether it still makes sense in 2026.

Read more →

Accumulating vs Distributing ETF — what's the difference and which to choose?

Difference between accumulating and distributing ETF. Which is better for IKE, which for passive income? Simple explanation with examples.

Read more →

All-Weather Portfolio — Definition and Allocation

The All-Weather portfolio is Ray Dalio's investment strategy designed for all market conditions. Learn about allocation and operating principles.

Read more →

Anchoring Bias — Definition and Examples in Finance

What is anchoring bias in finance? How anchoring effect influences investment and purchasing decisions.

Read more →

Angel Investor — What Is a Business Angel?

Who is an angel investor? How much do they invest, what do they expect, and how does angel investing work in startups?

Read more →

Annual Return Rate (CAGR) — What It Is and How to Calculate It

CAGR (Compound Annual Growth Rate) is the average annual return rate accounting for compound interest. Learn how to calculate it and why it's better than simple average.

Read more →

APR — What Is the Annual Percentage Rate?

APR (Annual Percentage Rate) — definition, how to read it, and why it's the most important indicator of loan costs.

Read more →

Asset Allocation — What is it? How to Structure Investment Portfolio

Asset allocation is a strategy for dividing portfolio between different asset classes. Learn principles, models and how to choose allocation for your goals.

Read more →