Real Rate of Return The Real Rate of Return refers to the return on an investment after being adjusted for inflation.
Reinvestment Reinvestment is the use of dividends, interest, or profits from an investment to buy more of that investment , rather than receiving the payout in cash. Normally, taxes must still be paid on a distribution even though it was reinvested.
Revocable Trust A revocable trust is a type of trust in which provisions can be altered or canceled by the grantor. During the life of the trust, income earned is distributed to the grantor, and only after death does property transfer to the beneficiaries. This is the opposite of an Irrevocable Trust, which cannot be modified or terminated without the permission of the beneficiary.
Risk Risk is the possibility that an investment's actual return will be different than expected; includes the possibility of losing some or all of the original investment. Measured by variability of historical returns or dispersion of historical returns around their average return.
Rollover A rollover is a method by which an individual can transfer the assets from one retirement program to another without the recognition of income for tax purposes. The requirements for a rollover depend on the type of program from which the distribution is made and the type of program receiving the distribution.
Roth IRA Individual retirement plan. Contributions are not deductible and qualified distributions are tax free.