Defined Contribution Plans
Before Uncle Sam takes his cut, your paycheck sneaks some cash into this retirement plan
What is traditional 401(k)?
Withdrawals before this age are generally subject to a 10% penalty
Instead of hoarding wealth for heirs, this idea encourages converting your nest egg into life experiences while you can enjoy them
What is "Die with Zero"?
Bonnie’s long-term plan for keeping Social Security funded starts with this duty
What is having kids?
This concept describes the point where you work only because you want to, not because you need to
What is financial independence?
This is considered free money from your employer, but only if you participate
What is Employer Match?
Starting to save earlier in life helps because of this powerful concept
What is compound interest?
These required withdrawals must begin at age 73
What are required minimum distributions?
At this age, your Social Security check will be fully maxed out
What is 70?
This type of plan guarantees a fixed payout in retirement, often from an employer
What is a pension?
Stick around long enough and the company money is finally all yours thanks to this timeline based rule
What is a vesting schedule?
This strategy converts a tax-deferred IRA into a tax free account, triggering taxes today
What is a Roth Conversion?
New research suggests a safer withdrawal rate closer to this percentage
What is about 3.3%?
This risk is associated with dying before collecting Social Security benefits
What is Mortality Risk?
This major assumption in retirement planning accounts for rising costs over time
What is inflation?
This rule ensures 401(k) plans do not disproportionately benefit highly compensated employees
What are nondiscrimination rules (ADP/ACP test)?
This strategy lets you transfer funds directly from an IRA to a qualified charity avoiding taxable income
What is a Qualified Charitable Distribution (QCD)?
These three parts make up the three-legged stool that keeps your retirement from falling flat
What is Social Security, Employer’s Retirement Plan, and Personal Savings?
This is the max percentage of Social Security benefits that may be taxable depending on income
What is up to 85%?
The risk of outliving your financial resources during retirement
What is longevity risk?
Your plan isn't random, it is calculated using this trio of career stats
What is Preretirement Compensation, Age at Retirement, and Years of Service?
This requirement is needed to contribute to an IRA, excluding passive income like dividends
What is earned income?
This simulation technique models thousands of possible outcomes to assess retirement success
What is Monte Carlo Simulation?
Social Security will be able to pay out full benefits for this many years (based on the 2024 trustees report)
What is 11 years?
Other than the 5 assumptions for financial independence, this should also be considered
What are unanticipated financial needs?