Retirement Basics
What is the age at which you can begin receiving Social Security retirement benefits without any penalties?
What is 66 or 67 (depending on your birth year)?
This type of retirement account allows you to make contributions with after-tax dollars, but withdrawals in retirement are tax-free.
What is a Roth IRA?
This term refers to the percentage of your final salary that you’ll need to replace each year in retirement.
What is "replacement rate?"
This type of investment typically provides more growth potential but also more risk and is often recommended for younger investors saving for retirement.
What are stocks or equity investments?
This is the age at which you can begin withdrawing from your 401(k) or IRA without paying an early withdrawal penalty.
What is 59 1/2?
What type of retirement account is typically offered through your employer and allows you to defer taxes until retirement?
What is a 401(k)
This account type allows you to defer taxes on your contributions until retirement, and your employer may match your contributions.
This is the formula often used to determine how much money you need to save in order to retire, typically using a 4% withdrawal rate.
What is the "4% rule"?
This type of asset allocation is recommended for those closer to retirement to reduce risk and protect your savings from market volatility.
What is a bond-heavy or more conservative portfolio?
This is the IRS maximum amount you can withdraw from your 401(k) or IRA annually without penalties, known as the safe withdrawal rate.
What is 4%?
What is the primary purpose of a retirement account like an IRA or 401(k)?
What is to save for retirement while benefiting from tax advantages?
Which type of IRA has income limits on contributions?
The amount of money you need in your retirement account to provide for your yearly expenses through retirement, calculated using a conservative withdrawal rate.
What is the "retirement nest egg"?
This is the general term for putting money into a retirement account regularly, such as contributing to a 401(k) or IRA every month.
What is dollar-cost averaging?
These government-provided payments are typically available to individuals who have worked for a certain number of years and are now retired.
What are social security benefits?
This is the percentage of your annual salary that financial experts recommend you save each year for retirement.
What is 15%
What is the maximum amount you can contribute to a Roth IRA in 2024 if you are under the age of 50?
What is $6,500?
This concept refers to the increasing cost of goods and services over time, which affects how much you need to save for retirement.
What is inflation?
The longer you wait to start saving for retirement, the higher this type of cost becomes, meaning you must save more each month to reach your goal.
What is the cost of delay or time risk?
This type of retirement income product provides a guaranteed income stream for life, often used to supplement Social Security or other retirement savings.
What is an annuity?
What is the term for the amount of money you need in retirement to maintain your desired lifestyle, usually expressed as an annual income target?
What is your retirement income goal or retirement number?
If your income exceeds the IRS limit for Roth IRA contributions, this type of IRA might still be available to you as an option.
What is a Traditional IRA or a Backdoor Roth IRA?
This is the risk that your investments may not provide enough returns to meet your retirement goals, often leading to a shortfall.
What is the sequence of returns risk?
When planning for retirement, this financial tool helps you determine how much you need to save each month based on your retirement goals and income needs.
What is a retirement calculator or retirement planning tool?
This is the term for the amount of money you need to save in order to support a desired lifestyle during retirement, typically calculated based on your living expenses.
What is your retirement income target or retirement savings goal?