401K
Tax Deferred Growth
What is how contributions to my 401K grow in value
With this type of investment you loan your money to a corporation or government entity that promises to pay you interest and return your principle at a future date.
What is a Bond or Fixed Income
$35,000 VS $12,000 VS $26,000
What is the avg cost of 1 years tuition at a private college vs in-state public vs out-state public , books, room & board
The new percentage of salary that analysts think most people need to save annually to reach their retirement goals
What is 15%
The Social Security Administration considers this to be your Full Retirement Age (FRA) if you were born between 1943 and 1954 (whether you're actually retired or not!).
What is 66. This is the age you are eligible for full benefits. 1943-1954 - 66 1955 - 1959 - 66+2 months for every year After 1959 - 67
$19,000 annually (2019)
What is the maximum contribution to a 401k for employees <50 years old
It represents ownership in a company
What is Stock or Equity
UTMA
Uniform Transfer to Minors Account. A joint investment account for minors that passes control passes to the child at 21!
A savings vehicle that allows you to save for retirement. Contributions are made on a pre-tax bases and earnings grow tax deferred!
What is a Traditional IRA
Market Risk
What is the potential loss from stock investments. Risk increases for more aggressive investors
$6,000 annually
What is the additional amount that an employee 50 years of age or older may contribute. This is called a catch-up contribution.
The name of a portfolio of investments sharing a common objective and generally managed by an individual or team.
What is Mutual Fund
Earnings on children's accounts in excess of $2,000 is taxed at the parents tax rate. Prevent parents from moving savings to child to avoid taxes.
Kiddie Tax
A savings vehicle that allows you to save for retirement. Contributions are made on an after-tax basis and Earnings grow and distribute tax free!
What is a Roth IRA
Inflation Risk
What is the risk of rising costs to someone recieving fixed income. Risk increases for more conservative investors.
55-59yrs old (Depends on your employer's plan)
What is the age you must be to make penalty free withdrawals from a 401K.
Things that are important to us, the characteristics, and behaviors that motivate us and guide our decisions
What are Values and Beliefs
A savings account which can be used for qualified elementary and secondary education expenses of a designated beneficiary. You may contribute up to $2,000/yr, subject to MAGI limits (190-220k).
What is a Coverdell Education Savings Account (ESA)
The maximum $$ amount that you may contribute in 2015 to a Traditional or Roth IRA if you are under 50 years old (subject to MAGI limits)
What is $6000
Diversification
What is investing in different areas to reduce the impact of loss due to a poorly performing investment.
Employer Match
What is FREE MONEY, LADIES!!!!
The mix of cash , stocks and bonds in your portfolio. It may drive 93% of your returns.
What is Asset Allocation
An account that contributors may set aside $15,000 annually for a designated beneficiary's higher education expenses.
What is a 529 Plan
Based on a given interest rate, this is a formula for determing how long it will take your money to double.
Rule of 72
Small Cap Stocks
What are companies with a capitalization of less than 2 billion