The Retirement Corporation of America




Registered Investment Advisor
An RIA is an advisor, registered with and strictly regulated by the Securities and Exchange Commission, who manages the investments of others. In general, an RIA with more than $25 million under management must register with the SEC - under that, at the state level. The role, obligations and duties of a registered investment advisor are very explicitly defined. Every RIA has a fiduciary duty to their clients - a moral and a legal obligation to place a clients' interest ahead of their own. This duty also obliges the clear identification of all sources of compensation, how much, and any conflicts of interest - as described in the Investment Advistors Act of 1940.

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.

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