Slideshow Alphabet soup no more: Test yourself on these planning acronyms

Published
  • March 20 2018, 1:58pm EDT
25 Images Total

If there's one thing the wealth management industry loves, it's a good abbreviation. We get it. But sometimes it can be difficult to wade through all the alphabet soup out there.

We've assembled another quiz to challenge your savvy at identifying financial planning-related acronyms.

Click through the slideshow to brush up on acronyms you may not know (or may have forgotten. We won't judge). Test yourself by considering each hint before flipping to the answer on the next slide.

If you're on a roll, keep going: Click here, here, here and here for even more acronyms.

Hint: A way to measure growth across a specified period of time longer than one year, also known as the annualized return.

Content Continues Below



Hint: A way to measure if clients' portfolios align with their appetite for risk.

Content Continues Below


Hint: Net income that returns as a percentage of a shareholder's equity.


Hint: Also known as ROI, this is an indicator of how a company's profitability compares to its total assets.

Content Continues Below



Hint: The difference between the cost of shares and the current market value of the shares held in a tax-deferred account. This can be important particularly if your clients are enrolled in employee-sponsored retirement plans, such as a 401(k).

Content Continues Below


Hint: The official name for Social Security in the United States.


Hint: This metric can help investors identify high and low revenue-generating products.

Content Continues Below



Hint: A benefit plan that allows employees to invest in their employers' stock.

Content Continues Below


Hint: This determines whether clients' IRA contributions are tax deductible or whether they qualify for premium tax credits.


Hint: This surcharge may apply to some clients with higher annual earnings when they are paying for monthly Medicare Part D and Part B premiums.

Content Continues Below



Hint: This common estate planning vehicle allows clients to lessen their taxable income by disbursing income to beneficiaries for a specific amount of time before the remainder is donated to a charity.

Content Continues Below


Hint: This deferred annuity is funded by retirement plans like 401(k)s, 403(bs) and IRAs and can be turned into lifetime income without violating required minimum distribution rules.