Economics 101: Understanding Economic Terms

Get ready to dive into the world of finance like you've never done before! In this episode, our financial wizard Amy Irvine takes us on a whirlwind tour, decoding complex financial jargon and making it as easy as ABC. From short selling to capital gains, Amy breaks down intricate financial terms with her knack for making tricky concepts digestible. Ever wondered what 'market capitalization' really means? Or how about the strategy behind 'dollar cost averaging'? Well, you're in the right place.

But that's not all! Get ready to journey with Amy to the lush vineyards of Tennessee as she shares her wine region recommendation for this episode. With a glass of enchanting French Hybrid wine in hand, we promise you an enlightening experience where finance meets fun. So, buckle up for a roller coaster ride through the finance world and get ready to become the savvy investor you've always dreamed of being. Cheers to knowledge and good wine!

Remember, just like a good bottle of wine, the Wine and Dime Podcast gets better with time. So don't forget to rate and subscribe to our show, where we blend the flavors of wine and personal finance to help you achieve financial freedom!

If you have any questions that you would like answered on the show, feel free to email us at info@rootedpg.com

Or visit us at www.rootedpg.com/podcasts for full show notes and links!

What You’ll Learn:

Market Capitalization

Amy kicks things off with a clear definition of market capitalization and how it divides companies into categories of large cap, mid cap, and small cap. These terms, based on the overall value of a company's publicly traded shares, can greatly influence investment strategies.

Dollar Cost Averaging

Next up, we discuss dollar cost averaging, a strategy that involves regularly investing a fixed amount of money, regardless of asset price. Amy explains why this method can help investors avoid the pitfalls of market timing and reduce the impact of market volatility.

Liquidity

Amy gives a great explanation of liquidity, referring to how quickly assets can be converted into cash. She also introduces us to its opposite - illiquidity - and discusses how these concepts can affect your financial decisions.

Short Selling

We then move onto short selling, a topic that has made headlines in recent years. Amy breaks down this high-risk investment strategy and why it's not typically recommended for most investors.

ETFs vs Mutual Funds

Amy helps us understand the difference between exchange-traded funds (ETFs) and mutual funds. While they may seem similar, they're traded differently and can have distinct implications for your investment portfolio.

Capital Gains & Capital Gain Distributions

Finally, we delve into the world of capital gains and capital gain distributions. Amy highlights the important differences between these two terms and how they can affect your tax return.

If there are any financial terms you've heard and want to learn more about, we encourages listeners to reach out. We are always eager to help unravel the complexities of financial terminology and make finance more accessible to everyone.

Wine Region Recommendation

In this episode, Amy invites us on a captivating journey through the flourishing vineyards of Tennessee, USA. Tennessee is making its mark in the wine world with its French Hybrid wines. These wines, bred to resist the harsh American winters and various vine diseases, provide a unique flavor profile that sets Tennessee wines apart.

From the Appalachian High Country to the banks of the Mississippi River, Tennessee's diverse landscape offers a myriad of wine experiences. The state's vineyards, characterized by their Southern charm and hospitality, provide unforgettable tastings, guided tours, and a deep immersion into the vibrant local culture. If you're a wine enthusiast, your next adventure in the heart of America should be exploring Tennessee's burgeoning wine industry!

This episode is brought to you by Rooted Planning Group. Rooted Planning Group is a fee-only financial planning firm that specializes in working with women in their 30s and 40s who want to take control of their finances and plan for the future. Whether you're just starting out or you're looking to make a big change, Rooted Planning Group can help.

Visit www.rootedpg.com to learn more.

Bank Failures and Insurance Limits

Welcome to the Wine and Dime podcast, where financial topics are uncorked and discussed like a fine bottle of wine.

In today's episode, Amy talks about the recent bank failures and the insurance limits that protect your funds. Before diving into the topic, Amy mentions her wine recommendation for the day - a 2019 Bourbon Barrel Cab from Berklee Winery in Lubbock, Texas. Moving on to the topic, Amy explains the different types of insurances available, such as FDIC and NCUA, and the limits for each. She also highlights the differences between the types of accounts that are covered and not covered. Investments made in stocks, bonds, mutual funds, crypto assets, and annuities are not covered under FDIC insurance. Amy provides a useful link to help listeners check if their funds exceed the FDIC limits.

If you have any questions that you would like answered on the show, feel free to email us at info@rootedpg.com

Or visit us at www.rootedpg.com/podcasts for full show notes and links!

What you'll learn:

Recent bank failures have caused concerns about the safety of deposited funds

Different types of insurance available: SIPC, FDIC and NCUA

FDIC insurance covers checking accounts, savings accounts, CDs, money market deposit accounts, and other official checks issued by a bank

FDIC insurance does not cover stock investments, bond investments, mutual funds, any kind of crypto assets, life insurance policies, annuities, any kind of municipal securities, safe deposit boxes or their contents, and then U.S. Treasury bills or bonds or notes

The standard insurance amount is $250,000 per depositor

Wine Recommended: 2019 Bourbon Barrel Cab from Berklee Winery

The 2019 Bourbon Barrel Cab from Berklee Winery in Lubbock, Texas is a wine that is sure to please any wine enthusiast. This wine is a Cabernet Sauvignon that has been aged in bourbon barrels, giving it a unique flavor profile that is sure to impress.

The wine is dark and rich, with aromas of blackberry, black cherry, vanilla, and oak. On the palate, the wine is full-bodied with flavors of dark fruit, vanilla, and a hint of caramel. The bourbon barrel aging adds a subtle smokiness and complexity to the wine, making it a great pairing for rich, hearty dishes like grilled steak or roasted lamb.

Berklee Winery is located in Lubbock, Texas, which is known for its hot and dry climate. Despite this challenging environment, Berklee Winery has managed to produce some exceptional wines using sustainable farming practices and a commitment to quality.

Overall, the 2019 Bourbon Barrel Cab from Berklee Winery is a fantastic choice for anyone looking to try something new and exciting in the world of wine. Whether you're a seasoned wine drinker or a beginner, this wine is sure to impress with its unique flavor profile and exceptional quality.

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