ALCO Definition: What an Asset-Liability Committee Does and Why It Matters
Warren Team
Continue learning
Related articles
Key terms
- AssetAnything of value that an individual or company owns, such as cash, investments, real estate, or personal property. Assets are the foundation of building wealth.
- LiabilityA financial obligation or debt owed to another party. Liabilities include mortgages, auto loans, credit card debt, and student loans.
- Asset AllocationAn investment strategy that balances risk and reward by dividing investments among different asset categories, such as stocks, bonds, and cash, based on goals and risk tolerance.
- Zero LiabilityA fraud protection policy ensuring cardholders aren't responsible for unauthorized charges. Federal law caps liability at $50, but most issuers offer complete zero liability protection.
Get your first personalized plan in minutes
Free to start, no credit card required. Warren reads your accounts, it never moves money.