The Growth of $10,000 graph shows a fund's performance based on how $10,000 invested in the fund would have grown over time. The returns used in the graph are not load-adjusted. The growth of $10,000 begins at the date of the fund's inception, or the first year listed on the graph, whichever is appropriate. Often, located alongside the fund's graph line is a line that represents the growth of $10,000 in either the S&P 500 Index (for stock funds and hybrid funds), the LB Aggregate Index (for bond funds) or the fund's Morningstar category average. These lines allow investors to compare the performance of the fund with the performance of a benchmark index and the fund's Morningstar category. Both lines are plotted on a logarithmic scale, so that identical percentage changes in the value of an investment have the same vertical distance on the graph.

For example, the vertical distance between $10,000 and $20,000 is the same as the distance between $20,000 and $40,000 because both represent a 100% increase in investment value. This provides a more accurate representation of performance than would a simple arithmetic graph. The graphs are scaled so that the full length of the vertical axis represents a tenfold increase in investment value. For securities with returns that have exhibited greater than a tenfold increase over the period shown in the graph, the vertical axis has been compressed accordingly.

Long-Term Earnings Growth
Earnings are what's left of a firm's revenues after it pays all of its expenses, costs, and taxes. Companies whose earnings grow faster than those of their industry peers usually see better price performance for their stocks. Projected earnings growth is an estimate of a company's expected long-term growth in earnings, derived from all polled analysts' estimates. When reported for a mutual fund, it shows the weighted average of the projected growth in earnings for each stock in the fund's portfolio. At Morningstar, this measure helps determine our growth score for each stock and the overall growth orientation of the fund.

Historical Earnings Growth
Historical earnings growth shows the rate of increase in a company's earnings per share, based on up to four periodic time periods. When reported for a mutual fund, it shows the weighted average of the growth in earnings for each stock in the fund's portfolio. At Morningstar, this measure helps determine our growth score for each stock and the overall growth orientation of the fund.

Sales Growth
Sales growth shows the rate of increase in a company's sales per share, based on up to four periodic time periods, and is considered the best gauge of how rapidly a company's core business is growing. When reported for a mutual fund, it shows the weighted average of the sales-growth rates for each stock in the fund's portfolio. At Morningstar, this measure helps determine our growth score for each stock and the overall growth orientation of the fund.

Cash Flow Growth
Cash flow tells you how much cash a business is actually generating its earnings before depreciation, amortization, and noncash charges. Sometimes called cash earnings, it's considered a gauge of liquidity and solvency. Cash-flow growth shows the rate of increase in a company's cash flow per share, based on up to four time periods. When reported for a mutual fund, it shows the weighted average of the growth in cash flow for each stock in the fund's portfolio. At Morningstar, this measure helps determine our growth score for each stock and the overall growth orientation of the fund.

Book Value Growth
Book value is, in theory, what would be left over for shareholders if a company shut down its operations, paid off all its creditors, collected from all its debtors, and liquidated itself. In practice, however, the value of assets and liabilities can change substantially from when they are first recorded. Book value growth shows the rate of increase in a company's book value per share, based on up to four periodic time periods. When reported for a mutual fund, it shows the weighted average of the growth rates in book value for each stock in the fund's portfolio. At Morningstar, this measure helps determine our growth score for each stock and the overall growth orientation of the fund.

Funds that track a particular index and attempt to match its returns. While an index typically has a much larger portfolio than a mutual fund, the fund's management may study the index's movements to develop a representative sampling, and match sectors proportionately. See also Enhanced Index Funds.

The company's primary area of business. This field provides an easy way to search for stocks within a certain area of business. When making comparisons among stocks, it can be helpful to compare companies within the same area of business. At Morningstar, we also provide percentile rankings within the company's industry for data such as net margin, revenue growth, earnings growth, and total return. The information is gathered from the description-of business section of the company's 10-K form. The company is then coded using the North American Industrial Classification System. More information about the NAICS is available by calling 1-800-553-6847 to purchase a technical manual, visiting the Internet site at www.census.gov/naics, or calling an industry classification expert at 1-888-75NAICS.

There are countless varieties of investment vehicles, from antique coins to exotic derivates. But for most people, the four key investment holdings are stocks, mutual funds, bonds, and real estate. More on Investments

Traditional IRA
Don't let the name fool you: The traditional IRA is actually a revolutionary way to save money for retirement. Why? For one thing, your contribution to a traditional IRA may be tax-deductible, depending on how much you earn each year. If you qualify, the money you tuck into a traditional IRA isn't taxed until you withdraw it.

Even if your contribution is taxable, it's still a good idea to invest in a traditional IRA, since your assets will grow tax-deferred. Because you don't lose anything to taxes, the full amount of the return you make in any given year sticks around to earn even more money the next year.

So why call it traditional? Because a new kind of IRA, named the Roth IRA, was created a few years ago. Unlike most sequels, the Roth can be just as good, if not better, than the original IRA for some investors. For those who aren't allowed to use a Roth IRA (because they make too much money), a traditional IRA is still a great thing.

Roth IRA
The Roth IRA got its name from the man who invented it in 1997, Senator William Roth. Roth's invention differs from a traditional IRA in several ways. For many investors, it's a better idea to invest in a Roth IRA than in a traditional IRA.

Unfortunately, you can't start or contribute to a Roth IRA if you make more than $110,000 a year on your own, or $160,000 as a married couple. Unlike a traditional IRA, the money you contribute to a Roth IRA isn't tax-deductible. But after you invest in a Roth IRA, you never have to worry about paying taxes on that money or any returns it might earn again. That's a powerful advantage, especially if you'll be paying less in taxes when you put money in than when you'll be taking money out.

Roth IRAs have other advantages, too. While a traditional IRA forces you to start withdrawing cash and paying taxes on the money at age 70 1/2, you can wait as long as you like before dipping into your Roth IRA. You can also withdraw any of your Roth IRA contributions, if you need to, without penalties. Pluck out any investment earnings you make before you're 59 1/2, however, and you'll get hit with some penalties.

Educational IRA
When is an IRA not a retirement account? When it's an Education IRA. That's because you invest in an Education IRA to help pay for your children's college expenses (such as tuition, fees, and books), not to help pay for your retirement.

As long as your child is under the age of 18, you can contribute to his Education IRA (now known as the Coverdell Savings Account).

Money in your child's Education IRA grows tax-free, just like cash in any IRA. When your teenager heads off to school, he can withdraw that money to pay for higher education. As long as your new scholar uses that cash for education, he won't owe any taxes on the money taken out. And if Junior doesn't end up spending it all on those college bills (though there's not much chance of that actually happening), the money can be passed along to a younger sibling's Education IRA.

Children have until age 30 to spend their Education IRA money. Any money left after that time, and any earnings ever withdrawn to pay for anything other than education expenses, are subject to taxes and a penalty.

The most recently reported price for the company. Keep in mind that prices are often delayed by 15 minutes or more. When you are looking at price data, make sure you know its timeliness (in the footnotes)

These funds are geared toward investors of a certain age or with a specific time horizon for investing. Typically they are grouped together in sets (i.e. conservative, moderate, and aggressive portfolios).