InvestingFIRE glossary
Defined termThree-Fund Portfolio
A Boglehead classic: one US total stock market fund, one international stock fund, and one total bond fund. Simple, diversified, and battle-tested.
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Dollar-Cost Averaging (DCA)
Investing a fixed amount on a regular schedule regardless of price. Smooths out volatility and removes emotion from timing decisions.
Index Fund
A fund that passively tracks a market index (like the S&P 500). Low fees, broad diversification, and the core holding for most FIRE investors.
Asset Allocation
How your portfolio is split across asset classes (stocks, bonds, cash, real estate). The single biggest driver of long-term returns and volatility — pick one you can actually stomach in a crash.
Treasury Bills (T-Bills)
Short-term U.S. government debt (4-week to 1-year maturities). State-tax-free and one of the safest places to park cash — often beat high-yield savings rates.
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