Glossary

A trust in which the creator reserves the right to modify or terminate the trust.

The chance that an investor will lose all or part of an investment.

Refers to the assumption that rational investors will choose the security with the least risk if they can maintain the same return. As the level of risk goes up, so must the expected return on the investment.

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.

A nondeductible IRA that allows tax-free withdrawals when certain conditions are met. Income and contribution limits apply.