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GLOSSARY
Trade line
Trade line refers to an account shown on a credit report.
Trade lines
Each different credit account listed on your credit report. Trade lines can affect your credit score and help determine what you are eligible for.
Trade-in value
The amount of cash a car dealer will give you for your vehicle as a down payment in the purchase of a new car.
Trading account
Trading account is an account held by an investor with an investment dealer that's used to settle securities purchases and sales. Trading accounts can hold cash, foreign investments, and various other types of securities.
Trading down
Making a move from a high end home to a less expensive home.
Trading up
Making a move from a house into a more expensive home.
Traditional IRA
The original self motivated retirement plan. A person may contribute money into their IRA annually depending on how much they've earned. These contributions may be tax deductible depending on your income and if you are covered by a retirement plan at your place of employment.
Traditional whole life policy
Traditional whole life policy is a life insurance agreement that doesn't expire. The policy ends when the insured dies and the agreed-upon payment is made to the insured's beneficiaries. Whole life policies build up cash value over time, which can be borrowed against or withdrawn by the insured. If the insured cancels the policy before death, he may receive a cash surrender value.
Transaction broker or agency
The company that works for both the buyer and seller but makes it clear that they are not in a fiduciary relationship with either side. The broker will be hired to help them reach an agreement. The Switzerland of real estate.
Transaction broker or transaction agency
Transaction broker, or transaction agency, is a real estate agent or firm that represents both buyer and seller in a real estate transaction. Neither buyer nor seller is represented by an agent that will pursue their best interests. Conflicts are sometimes resolved by bringing in an independent real estate professional.
Transaction date
Transaction date is the actual date that a sale was made, or an account action was taken. The transaction date may differ from the settlement date, which is the date on which the details of the transaction are recorded and finalized.
Transfer
Transfer is the switch of ownership rights to an asset from one party to another. A transfer can also be the movement of money from one account to another. Specific to IRAs, a transfer is the movement of assets from one retirement plan to another, where such movement qualifies as a tax-free, non-reportable incident.
Transfer of risk
Transfer of risk is a basic premise of insurance. The arrangement between an insured and insurance provider is always transfer of risk, because the insurance provider accepts financial responsibility for losses associated with certain events, should those events occur. The insurance company accepts a fee or premium for accepting the risk transfer.
Transfer on death - TOD
Transfer on death, or TOD, is a designation that can be placed on securities positions or accounts that keeps these assets out of probate when the owner dies. If the owner designated a TOD beneficiary, the securities will be immediately transferred to that beneficiary upon death. There's no change in the owner's rights to the assets while the owner is alive.
Transfer tax
A tax issued on the transfer of title in a real estate transaction.