What Is an Irrevocable Income-Only Trust (IIOT)? An irrevocable income-only trust is a type of living trust often used for Medicaid planning. It protects assets from being sold to pay for nursing home and other long-term care expenses so that the assets can be passed on to beneficiaries. (A beneficiary – any person or entity
What Is the Investment Industry Regulatory Organization of Canada (IIROC)? The Investment Industry Regulatory Organization of Canada (IIROC) is an organization charged with overseeing investment dealers, brokers, and trading activity in debt and equity markets in Canada. The organization has a mandate to protect investors and is granted various powers toward that end. Understanding the
What Is Investment in the Contract? Investment in the contract, as it is applied to annuities, is the principal amount the holder has invested. It can be made by payments or a lump sum. This term generally applies to fixed, indexed, and variable annuities alike. Generally speaking, investment in the contract is the total amount
What Is Investment Management? Investment management refers to the handling of financial assets and other investments—not only buying and selling them. Management includes devising a short- or long-term strategy for acquiring and disposing of portfolio holdings. It can also include banking, budgeting, and tax services and duties, as well. The term most often refers to
What Is the Investment Multiplier? The term investment multiplier refers to the concept that any increase in public or private investment spending has a more than proportionate positive impact on aggregate income and the general economy. It is rooted in the economic theories of John Maynard Keynes. The multiplier attempts to quantify the additional effects
What Is an Investment Objective? An investment objective is used by asset managers to determine the optimal portfolio mix for a client. Investments are chosen using the guidelines of the investment objective. An investor questionnaire often defines financial goals and objectives and determines the asset allocation within the portfolio based on an individual’s time horizon
What is an Investment Pyramid An investment pyramid, or risk pyramid, is a portfolio strategy that allocates assets according to the relative risk levels of those investments. The risk of an investment is defined in this strategy by the variance of the investment return, or the likelihood the investment will decrease in value to a
What Is Investment Real Estate? Investment real estate is real estate that generates income or is otherwise intended for investment purposes rather than as a primary residence. It is common for investors to own multiple pieces of real estate, one of which serves as a primary residence while the others are used to generate rental
What Are Investment Securities? Investment securities are a category of securities—tradable financial assets such as equities or fixed income instruments—that are purchased with the intention of holding them for investment. As opposed to investment securities, in general, securities are purchased by a broker-dealer or other intermediary for quick resale. Investment securities are subject to governance
What Is an Investment View? An investment view accounts for how an individual or firm perceives the market along with the underlying decision-making processes that lead to an investment. Often one’s investment view takes into account the external market environment along with one’s available resources and risk profile. An investment view will examine an investment
