Income
This is the first year/age you are able to claim Social Security Benefits
62 years old
This is a major stock market index.
S&P 500
NASDAQ
Dow Jones Industrial Average
Russell 2000
This is the age you must attain to withdraw from traditional retirement accounts without an IRS penalty tax.
59 1/2 years old
This is a legal document that allows you to to dictate how your assets are distributed, appoint a guardian for minor children, and designate an executor to manage your estate after you pass
Will
Last Will and Testament
The only non-president(s) on United States currency bills
Benjamin Franklin
Alexander Hamilton
The convensional wisdom rule for how to take income from your retirement savings.
4% Rule
Live off the interest
Single investments that allow a retail investor to buy a package of stocks and/or bonds in one transaction.
ETFs
Mutual Funds
A type of retirement account that allows savers to contribute after tax money and later withdraw all funds tax free
Roth IRA
Roth 401(k)
Often used to avoid probate, this legal arrangement can own homes, investments, and bank accounts on behalf of beneficiaries
Trust
Studies consistently show this is the top benefit people report after working with a financial advisor—more than higher investment returns
Peace of Mind
Sticking to the Financial Plan
Not Making Emotional Investment Decisions
This is referred to as "Full Retirement Age" for Social Security (for people born after 1960)
67 years old
A retirement investment product designed and sold by insurance companies - sometimes intended to pay a lifetime income stream.
Annuity
A type of retirement account that allows savers to defer income tax from the current year until the year they withdraw funds. These also require minimum distributions annually later in life.
Traditional IRA, Simple IRA, SEP IRA
Traditional 401k, 403(b), 457
To qualify for benefits under many long-term care insurance policies, a person typically must be unable to perform this number of Activities of Daily Living without assistance
2
(or must have a cognitive impairment)
This institution sets U.S. monetary policy and influences interest rates through decisions such as raising or lowering the federal funds rate
The Federal Reserve
The Fed
This is a stream of income paid by your employer after you retire and separate from service.
Pension
A credit/debt investment usually designed to pay interest to the investor in the form of a "coupon"
Bond
A penalty that increases medicare premiums for high earners in retirement, beginning at $218,000 total income for married retirees
IRMAA
Income Related Monthly Adjustment Amount
This is what Non-Qualified assets such as Stocks held in brokerage accounts recieve when they are inherited.
Step Up in Basis
A monetary system whose currency value is not tied to a hard asset such as gold or silver (like ours in the US)
Fiat money
The risk that investments intended for retirement income perform poorly in the beginning of retirement.
Sequence of Returns Risk
The section of the Revenue Act of 1978 that changed corporate retirement planning from defined benefit to defined contribution.
Section 401(k)
The senator who proposed and created the first tax free retirement income account through the Tax Relief Act of 1997.
William Roth
Roth
This is a way to give your RMD to charities such as churches completely tax free without incurring income tax as the owner/donor
Qualified Charitable Distribution
QCD
This song from Pink Floyd's "Dark Side of the Moon" was their highest charting single and breakthrough hit in the US.
Money