Retirement Accounts and Programs
Bon Bon’s retirement Holy Grail interface… (Hint: As opposed to infidelity)
Fidelity
This retirement account allows for tax-free withdrawals
ROTH
Often capped at a percentage of salary, this “free money” gets added when you make contributions to your retirement
Employer Contributions
Even if you haven't touched your retirement funds, the IRS will force your hand at age 73 by requiring this.
Required minimum distributions
FDR created this dying disease of a retirement program.
Social Security
If you’re teaching or working with a charity, this plan helps you save for retirement.
403(b) plan
This is an investing strategy that consists of putting money in the market at intervals
Dollar Cost Averaging
No need to fear running out of money with this plan, known as a Defined ______ plan
Defined Benefit Plan
Death and destruction are exceptions to withdrawal without penalty from what?
an IRA
You possess this quality when you work just because you like it (not because you have to).
Financial Independence
If you’re a self-employed individual, what is simple is actually simpler than SIMPLE.
SEP
You didn’t want to keep the stock anyway, selling it at a loss reduces your tax bill. That’s this strategy.
Tax loss harvesting
A defined benefit plan that in modern-day sparingly exists outside government employee benefits
Pension
This tax-advantaged account can only be used if you're enrolled in a high-deductible health plan.
HSA
Dividing this number by the annual return provides a quick estimate of how long it takes to double your money at a given interest rate
72
In 2025, you can contribute $23,500 and not a penny more to your 401(k), unless you are older than __
50 years
This rule states that you can withdraw a certain percentage of your retirement savings every year, adjusted for inflation for 25 years
The 4% Rule
401(k) Plan sponsors have this obligation, requiring them to prioritize your benefit over their own
Fiduciary Obligation
I have to work for so many years. I want to jump off a cliff. How many typical years until I vest this?
3-5 years
Some call it "lifestyle creep," but this is the formal term for when your expenses increase as your income increases.
Lifestyle Inflation
The retirement age to receive full S.S. benefits. (It is also the number of times Bonnie talks about Fidelity per class.)
67
Those withdrawing from social security can delay receiving benefits for up to ___ years after full retirement age, after this, no further benefit exists
3
Think of them as the FDIC of pensions, this agency steps in when employers can’t keep their promises
Pension Benefit Guaranty Corporation (PBGC)
Excluding qualified exceptions, withdrawing from a 401(k) before the age of 59 ½ results in a penalty of this amount
10%
This year was the last time that the Full Retirement age was updated
1960