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Part: 5 Here's Our Advice > Glossary - Pg. 290

Glossary 290 investment-grade The rating given to a bond of highest quality. Investment-grade is restricted to those bonds graded BBB and above by the rating agencies. investment risk Refers to the unpredictability of investment returns--that is, the chance that the actual return from an investment will be different from its expected return. Investment risk is measured stat- istically using standard deviation. Investment risks include economic risk, inflation risk, interest rate risk, market risk, and specific risk. IRA See individual retirement account (IRA). IRA rollover Reinvestment of a lump-sum distribution from an IRA when physical receipt of funds has been taken by the investor. The lump-sum distribution may be deposited in an IRA rollover account within 60 days of receipt to escape taxation. IRA transfer The direct transfer of assets in an individual retirement account from one trustee to another. With an IRA transfer, the investor does not take physical possession of the IRA assets; thus, there are no tax consequences to the movement of the funds. A direct transfer may result in some lost income to the investor because the funds could remain in transit for a number of days. joint life and survivorship annuity A contract that provides income to two or more people and that continues in force as long as any one of them survives. Keogh plan A tax-sheltered retirement plan into which self-employed individuals can deposit up to 25 per-