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face amount

The face amount stated in a life insurance policy is the amount that will be paid upon death, or policy maturity. The face amount of a permanent insurance policy may change with time as the cash value in the policy increases.

fair market value

The fair market value of a property or other asset is the price that a buyer and seller can establish in an arms-length transaction where neither one is compelled to buy or to sell.

family trust

An inter vivos trust established with family members as beneficiaries.

federal housing administration (fha)

The Federal Housing Administration (FHA) is a government agency that sets standards for underwriting residential mortgage loans made by private lenders and insures such transactions.

federal national mortgage association (fnma or fannie mae)

FNMA is a private corporation that acts as a secondary market investor in buying and selling mortgage loans.

fiduciary

An individual or institution occupying a position of trust. An executor, administrator or trustee.

financial planner

A person who helps you plan and carry out your financial future

fixed investment

Any investment paying a fixed interest rate such as a money market account, a certificate of deposit, a bond, a note, or a preferred stock. A fixed investment is the opposite of a variable investment.

fixed rate mortgage

With a fixed rate mortgage, your interest rate will remain the same for the entire term of the loan. Although the rate will begin slightly higher than a comparable adjustable rate mortgage (ARM), the interest rate you pay can never go up for as long as you have the mortgage.

fluctuation

A variation in the market price of a security

foreclosure

A foreclosure is the legal process by which a borrower losses their ownership interest in a collateralized property due to default on the attached loan.

fund manager

A person who manages the assets of a mutual fund.

fundamental analysis

Fundamental analysis is a technique of estimating a stock's future value based on the in-depth study of the stock's underlying financial statements. Fundamental analysis is the opposite of technical analysis.

future value

The future worth of a payment, or stream of payments, projected at a given interest rate for a given period of time.

futures market

A market in which contracts for future delivery of a commodity are bought and sold.