Who Needs Retirement, I'm only 18
The age at which one will receive the maximum amount of Social Security, Pension, and withdrawals from annuities.
What is Full retirement Age?
This is a Federal program that workers pay into with taxes and draw income from when they retire.
What is Social Security?
A tax free process for moving funds from one retirement account to another. (Hint: Red Rover)
What is a Rollover?
A financial instrument, typically offered through an insurance company, that guarantees a certain payout inn the future.
Also known as an IRA, this investment account with tax advantages that individuals can open to save for retirement. There are penalties for early withdrawal.
What is an Individual Retirement Account?
A regular payment made during one's retirement from an investment fund to which their employer has contributed during their working life.
What is a Pension?
A term to describe money put in one's retirement account from one's employer to encourage saving for retirement.
What are Matching Contributions?
If my Dog lives to be 70.5 years old, he will have to take these.
What is a Required Minimum Distribution?
A type of Annuity that provides income for a person as long as they live, even if the original contributions are exhausted.
What is Guaranteed Lifetime Income?
Also know as FICA, this is a tax deducted from one's pay to contribute to Social Security and Medicare. The employer contributes the same amount on the employee's behalf.
What is the Federal Insurance Contributions Act?
A term to describe the ability to buy a company's stock at discounted rates, normally offered as part of a job's compensation package.
What are Employee Stock Options?
An employer-sponsored plan that allows employees to contribute pre-tax money directly from their paycheck into a tax-advantaged retirement account.
What is a 401k?
Dual Term for when a dog leaves a mess and you slip on it AND When you transition from high risk to lower risk investments as you approach retirement.
What is a Glide Path?
These are good to have been thought out while young and long before you retire?
What are my Retirement Goals? OR How much am I going to need?
A professionally managed investment portfolio that adjusts its holdings from high risk to low risk based on the year one wants to retire.
What is a Target Date Fund?
The period an investor plans to hold onto an asset before selling it.
What is a Time Horizon?
An investment strategy where the investor puts the same dollar amount of money into the market at consistent intervals regardless of market conditions.
What is Dollar Cost Averaging?
You do this to your dog when its cold AND a term to describe when one earns ownership of an asset over time.
What is Vesting?
The best time to start saving for retirement is what age?
What is now? OR What is 20 years old?
This is used as a safety net for one's retirement. One should plan on Social Security covering only this percentage in retirement.
What is 40%
A tax-advantaged retirement-savings plan that is NOT tied to an employer and allows participants to contribute post-tax funds, which can be withdrawn tax free in retirement.
What is a Roth Individual Retirement Account?
A contribution to an account, like a traditional IRA or 401k, where the money enters the account before taxes have been paid.
What is a Pre-Tax Contribution?
Term for the Penalty when your Dog pulls out his retirement savings BEFORE he is 59.5 years old.
What is an Early Withdrawal Penalty?
In the retirement formula where one is determining the amount of periodic investment they need, the interest rate (r) is the numerator and this is number is the denominator.
What is n? OR What is # of Compounding Periods in a Year?
The amount I need to put away to save for retirement.
What is the Periodic Investment?