Withdrawing funds from a retirement account and reinvesting them in an individual retirement account (IRA). The rollover must take place within a specified time frame—usually 60 days—and each individual retirement account can only be rolled over one time during a one-year period.
The approach used to guide investment decisions, including which assets to invest in and when to buy and sell those assets. A good investment strategy will be based on an individual’s goals and tolerance for risk.
A collection of financial investments.
The amount paid for borrowing money. Interest rates are often given as an annual percentage of the principal of the loan, or APR. An interest rate is determined by several factors, including the size and type of the loan, the borrower’s credit history and interest rates set by the Federal Reserve Board.
A tax-deferred personal retirement plan. If the individual meets certain criteria, IRA contributions are tax deductible.
Stock of a company that is expected to have stable earnings and dividends. Income stocks are less volatile than the overall market and pay out above-average dividends.