Basic terms
The concept of dividing 72 with the annual interest to get the year the money will double.
What is the rule of 72?
Retirement plan for non-profit employees.
What is a 403(B)?
Covers you for a set period, like 10, 20, or 30 years.
What is Term Life Insurance?
what is your Full Retirement Age?
A permanent reduction in monthly benefits applies if you start receiving benefits before this age, though you can start as early as 62.
A share in a company.
What is a Stock?
Automatically adjust risk as you age.
What is Target Date Funds?
Many people receive health insurance as part of an employee benefits package.
What is Employer-Sponsored Plans?
What is Your Average Indexed Monthly Earnings?
Social Security benefits are based on this calculation, which uses your highest 35 years of indexed earnings.
Pooled investments managed by professionals.
what is Mutual Funds?
Employer-sponsored retirement plans.
What is a 401(K)?
Provides a payout to your beneficiaries upon your death.
What is Life Insurance?
What is The "excess earnings" rule.
The SSA may withhold some benefits if your earnings exceed a certain limit if you claim benefits before your FRA, but in your first year of retirement, this rule changes to a monthly income evaluation.
interest on principle and interest previously earned.
What is Compound Interest?
Post-tax contributions, tax-free withdrawals.
What is Roth IRA?
Protects your company from financial losses due to property damage, liability, and employee-related risks.
What is Business Insurance?
What is An 8% increase.
You can claim benefits as early as age 62, but for each year you delay starting benefits past your Full Retirement Age, you can receive an increase of this percentage until age 70.
Interest on principal only.
what is Simple Interest?
Pre-tax contributions, taxed later.
What is Traditional IRA?
Provides an extra layer of liability coverage beyond the limits of your homeowners and auto policies.
What is Umbrella Insurance?
What is 40 credits.
To be eligible for most Social Security benefits, including retirement benefits, you generally need to have accumulated at least this number of work credits, with one credit earned for each year between age 21 and the year you reach age 62.