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Financial Glossary - R
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Retirement Planning - The process of planning one's
finances and making lifestyle decisions for later life, typically for
the period of time after paid employment ceases.
Return - Investment gain or loss
Risk - Exposure to investment loss. For example, a high-risk investment carries with it a high chance of loss.
Risk Tolerance - A person's capacity to emotionally and financially handle the risks associated with investing.
Rollover
- Transfer of funds from a retirement savings plan, such as a 401(k) or
403(b), to a traditional IRA. The term is also used for changes from
one type of IRA investment to another. If done properly, according to
tax law, rollovers are a non-tax able event.
Updated:E.J.B.