Social Security
True or False: You can qualify for Social Security disability insurance even if you have never worked.
False
What is an annuity
A contract between you and an insurance company
Why is it recommended to consider an IRA instead of a regular savings account?
Low interest rates in savings accounts
What is the primary reason the federal government needs money from taxpayers?
Military, health programs, interest on debts, foreign aid
What is one example of less commonly purchased insurance?
Travel insurance
How many years of work are required to qualify for Social Security retirement benefits?
10 years
Who can invest in a 401k plan?
Only employees of companies that offer a 401k.
What is the tax treatment when contributing to a Traditional IRA?
Tax-deductible contributions
What is the purpose of a tax refund?
To get overpayments refunded
What is the purpose of insurance coverage?
Spread financial risk
What was the original intention of Social Security benefits?
Supplement retirement income
Who is responsible for running a 401k plan according to the video?
Employers
What is the tax treatment of a Roth IRA when contributing to it?
Taxed when contributing
When do you typically fill out a W4 tax form?
Before your first payday
What happens when you make a claim to the insurance company?
They soften some financial blow
When is the optimal age to collect Social Security to receive the maximum monthly benefit?
70
Can individuals invest in an annuity at any time?
Yes, there are no restrictions.
What is the maximum annual contribution limit for an IRA for individuals under 50 years old?
$6,000
What document is received from an employer to report wages and taxes paid?
W2
How can multiple claims affect premium costs and coverage eligibility?
They increase premium costs
How many of the highest-paid years are considered in the formula for determining monthly benefits?
35
What type of plan is a 401k?
. Qualified retirement plan
What is a key advantage of annuities over 401ks?
They provide guaranteed lifetime income
When should one ideally set up an appointment with a tax preparer?
January or February
Which types of individuals may opt for low monthly premium insurance with high deductibles?
Those who are rarely sick