Debt Free Article

Debt Terms Glossary

Letters Q-R

Real estate investment trust

 This trust is a closed end investment that many of our high end debt free or debt consolidation clients could be involved with. It is actually a company that purchases real estate properties or mortgages and passes virtually all the profits onto its shareholders. The trust’s shares are traded as if stock on the NYSE would be. – or other stock exchanges are for that matter.

Registered representatives

This is the formal debt free name for a stock broker. This is due to the registration they must comply with. They must be registered with the National Assoc. of Securities Dealers as a well qualified individual who can take on securities trades and the complex dealing surrounding them. It sounds tedious and it is for many of our debt free article readers out there. It is just a formality, but a strenuous one at that.

Return on equity     

This debt and finance term is a vital measure of investment results that is obtained by sectoring the total value of shareholders’ equity. This means the market value of common and even preferred stocks that go into the company’s after tax revenue.

Return on investment

This is a company’s after tax earnings divided by its complete amount of assets.

Reserve mortgage

Many of our debt consolidation readers understand this term as permission a homeowner has regarding the issue of borrowing against a part of their equity in the home without having to pay back any principal or interest until that house is actually sold. This means possibly after the homeowner even dies. This is a very interesting fact for many of our readers striving for a debt free lifestyle.

Roth 401(k)

Very well know and popular for many of our debt free article readers, Roth 401(k) plans are an employer sponsored retirement plan that allows an employee to divert a certain amount of their income (after tax). So, if the earnings directed to the plan is somewhat matched by their company that they work for, those earning have to go into a traditional 401(k), but the after tax value poses no major penalties if the money is needed in a hurry.

Roth IRA

This is an extremely common debt free advocate’s way to add to retirement. A Roth IRA is an individual retirement account where contributions are not deductible; however, withdrawals can be completely tax free in the retirement years. This is a very wise long term investment for our debt free wannabes out there to take part in. Adding money and setting up this type of account is simple, and can be done right at your bank or savings and loan.

Round lot

This I the debt free term that best describes a hundred shares of stock, the preferred number for purchasing and selling and many times the most cost effective unit when commissions are involved. When afforded, this is a great debt free way to invest.

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