An irrevocable trust which can be created in a non-qualified plan to protect contributions in the event of claims of employer creditors or change in management.

Real Property

Land and items that are permanently attached to the land.

Real Rate of Return

The annual percentage return realized on an investment, adjusted for changes in the price level due to inflation or deflation.

Registered Financial Consultant (RFC)

Offered by the International Association of Registered Financial Consultants 800-532-9060. This designation is awarded to IARFC members who complete education and experience requirements. Candidates must also meet licensing requirements for securities and life and health insurance. Continuing education is required.

Registered Financial Planner (RFP)

Offered by the Registered Financial Planner Institute- 440-282-7176, an international organization. The RFP is awarded to RFPI members who complete education and experience requirements. This financial planning specialty designation is used for estate planning, insurance, investments, real estate and tax.

Registered Health Underwriter (RHU)

Successful candidates must complete three examinations on the use and application of disability, health, medical and long term insurance. Additional requirements include ethics and experience requirements, plus 15 hours of CE yearly administered by the American College.

Registered Investment Advisor (RIA)

Offered by the Securities and Exchange Commission (SEC) or state securities administrators 800-732-0330. The RIA designation indicates registration with the SEC or with one or more of the states. No examination or continuing education is required for a business to file for the RIA with the SEC, but an individual broker-dealer must take the exam. States differ on requirements. A Registered Investment Adviser is a person or firm that has filed with the Securities and Exchange Commission and adheres to certain disclosure requirements. This qualification is necessary for the rendering of investment advice.

Relative Strength

Price performance of a stock divided by the price performed of an appropriate index over the same time period. A measure of price trend that indicates how a stock is performing relative to other stocks.

Required Beginning Date (RBD)

For individual retirement accounts (IRAs), qualified plans, and Section 403(b) arrangements, the date by which distributions must begin. For IRAs and 5% or more owners who participate in a qualified plan sponsored by their business, required distributions must commence on or before April 1 of the calendar year following the calendar year in which the participant turns age 70 ½. For participants who are not 5% or more owners, distributions from qualified plans or Section 403(b) arrangements must begin by April 1 of the calendar year following the later of the year the participant attains age 70 ½, or the year in which the participant retires.

Required Minimum Distribution (RMD)

The minimum amount required to be distributed annually from a qualified plan account or IRA due to the attainment of age 70 ½. The required beginning date for these annual distributions is April 1 of the calendar year following the year in which the participant reaches age 70 ½. The minimum amount is calculated using the life expectancy of the participant or the participant and their beneficiary. A 50% excise tax is charged on any amount not distributed as required.

Required Rate of Return

The rate of return demanded to induce investors to invest in a security.

Retention Ratio

The percent of earnings retained in the firm for investment purposes.

Return

Consists of income plus capital gains (or losses) relative to investment.

Return on Equity (ROE)

A ratio calculated by dividing common stock equity (net worth) at the beginning of the accounting period into net income for the period after preferred stock dividends, but before common stock dividends. ROE tells common stockholders how effectively their money is being employed.

Revenue Bond

A municipal bond supported by the revenue from a specific project, such as a toll road, bridge or municipal coliseum.

Risk

Possiblity 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.

Risk/Return Trade-Off

The balance an investor must decide on between the desire for low risk and high returns, since low levels of uncertainty (low risk) are associated with low potential returns and high levels of uncertainty (high risk) are associated with high potential returns.

Rollover

A tax-free transfer of qualified plan assets to another qualified plan or IRA. A direct rollover is a rollover distribution that is paid directly from a qualified plan to an eligible retirement plan or IRA. This method avoids the mandatory 20% withholding. An indirect rollover is a distribution from a qualified plan payable directly to the participant. With this method the distribution incurs a mandatory 20% withholding which is applied toward taxes due in the year of the distribution.

Rollover IRA Account

An individual retirement account that is established for the sole purpose of receiving a distribution from a qualified plan so that the assets can subsequently be rolled over into another qualified plan. These qualified plan rollover assets cannot be co-mingled with contributory IRA funds; any co-mingling of these funds will disqualify it from being allowed to roll into another qualified plan in the future.

Roth IRA

A nondeductible IRA with several unique features. Withdrawals are not taxable if left in the account for 5 years, the owner may continue to make contributions to the account after he or she is age 70 ½, and there is no required beginning date for withdrawals.

Round Lot

The basic trading block for stocks - usually 100 shares.