Career Transition

Glossary

Asset: What you own.

Asset Allocation: Diversifying your assets to minimize risk.

Bankruptcy: The process of being declared unable to pay your debts by a court. Your assets are then distributed among your creditors.

Career Transition: The process of moving from one job, although not necessarily one career, to another.

Cash Flow: Your income minus your expenses.

Emergency Reserve Fund: An amount of money set aside to use for unexpected needs.

Fair Market Value: The cash equivalent of an asset's value; what a willing buyer would pay a willing seller for the asset.

Illiquid Assets: Things you own which cannot be quickly turned into cash with minimal risk of loss of principal.

Income: Primarily includes your earnings (salary and self-employment income), severance, and unemployment. Other common income categories are interest, dividends, capital gains, investment and rental income, pension, and Social Security benefits.

Liability: What you owe.

Liquid Assets: Things you own which can be turned into cash quickly without risk of loss.

Net Cash Flow: Your income less your outflow (expenses plus the amount that goes into your savings and investments).

Net Worth: What you own (assets) minus what you owe (liabilities).

Notice: The act of being informed that you will be leaving your job begins the notice period.

Outflow: All your expenses and, typically, what you pay yourself (the amount that goes into your savings and investments).

Secured Loan: A loan that is guaranteed (secured) by an asset (collateral).

Unsecured Loan: A loan on your creditworthiness.

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*Non-deposit investment products and services are offered through CUSO Financial Services, L.P. ("CFS"), a Registered Broker-dealer (Member FINRA/SIPC) and SEC-registered Investment Advisor. Products offered through CFS: are not NCUA/NCUSIF or otherwise federally insured, are not guarantees or obligations of the credit union, and may involve investment risk including possible loss of principal. Investment Representatives are registered through CFS. General Electric Credit Union has contracted with CFS to make non-deposit investment products and services available to credit union members.

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