Retirement Savings Options
401K's
Roth IRA's
Retirement General Information
Smart Moves
100
Once a common benefit, this plan provides guaranteed income for life but has started to become increasingly rare. It's typically based on years of service and salary history.
What is a pension?
100
A 401k allows you to save for retirement using this type of money, meaning it's taken out before taxes.
What is pre-tax money?
100
A Roth IRA allows you to withdraw your money tax-free after this age.
What is 59½ ?
100
This famous investor, known for his simple approach to investing, is one of the richest men in the world.
Who is Warren Buffet?
100
The name of this powerful concept allows money to grow exponentially over time and is often called the 8th wonder of the world.
What is compound interest?
200
This type of retirement plan is typically offered by private-sector employers and sometimes includes a company match.
What is a 401k?
200
Many employers encourage saving by offering this, which means they contribute a percentage of what you put into your 401k.
What is an employer match?
200
This is the maximum amount an individual under 50 years old can contribute to a Roth IRA in 2024.
What is $7,000?
200
This financial firm, popular with do-it-yourself investors, is famous for its low-cost index funds.
What is Vanguard?
200
One of the biggest mistakes young investors make is not taking advantage of this free money offered by employers.
What is a 401k match?
300
This is the tax-advantaged account that allows employees of public schools and non-profits to save for retirement.
What is a 403b?
300
If you withdraw money from your 401k before this age, you usually will have to pay a 10% penalty.
What is 59½ ?
300
Unlike a 401k or traditional IRA, contributions to a Roth IRA can be withdrawn at any time without this.
What is a penalty?
300
The average recommended percentage of your income to save for retirement is at least this.
What is 10-15%
300
Actively managed funds tend to underperform because of these costs, which eat into your returns.
What are investment fees?
400
Unlike a 401k or 403b, this type of account does not give an upfront tax break but allows tax-free withdrawals in retirement. It is opened and funded by you alone, without any involvement from your employer.
What is a Roth IRA?
400
This legal term describes the process of gradually earning the right to keep employer-matched 401(k) funds.
What is vesting?
400
This is the main tax advantage of a Roth IRA compared to a traditional IRA.
What is tax-free withdrawals in retirement?
400
This type of fund passively follows a stock market index, like the S&P 500, and is recommended by many financial experts because of it's low fees.
What is an index fund?
400
This term describes when investors panic and sell after the stock market drops, often leading to losses.
What is selling low (or panic selling)?
500
This retirement plan is available to self-employed individuals and small business owners, allowing them to contribute more than a traditional IRA.
What is an SEP IRA?
500
This 401k investment option automatically adjusts risk based on the number of years until retirement. Sometimes referred to as a 'set it and forget it' option.
What is a Target Date Fund?
500
To contribute to a Roth IRA, you must have this type of income.
What is earned income?
500
A 401(k) and a 403(b) are similar retirement accounts, but a 403(b) is typically offered by these types of employers.
What are non-profits or not for profit organizations?
500
This financial strategy encourages setting aside savings before paying bills or making purchases, ensuring long-term financial security.
What is 'Pay Yourself First'?