Dependency
Risk & psychologyPeople who rely financially on your income.
In plain terms
It decides how much term cover you need and how much risk your plan can carry.
1492 terms
Glossary
Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
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Path dependency
Risk & psychologyThe property that the order of returns, not just their values, determines the outcome.
In plain terms
Multiplication does not care about order. Drawdown limits, margin calls and your own nerve do — which is why sequence decides whether you were still there for the good part.
Single point of failure
Fundamental analysisOne customer, plant, product or regulator whose loss would break the business.
In plain terms
Ask what remains if the largest single dependency disappeared. Size accordingly.