Retirement Basics
This account allows tax-free withdrawals in retirement if rules are met.
What is a Roth IRA?
Einstein allegedly called this the eighth wonder of the world.
What is compound interest?
California taxes this type of retirement account distribution as ordinary income.
What is a Traditional IRA?
True or False: You need $1 million before speaking with a financial advisor.
What is False?
When changing jobs, many people move their old 401(k) into this type of account.
What is an IRA rollover?
The age at which most people can begin taking Social Security retirement benefits.
What is age 62?
At 8% growth, money roughly doubles every this many years.
What is 9 years? (Rule of 72)
California currently has no tax on this transfer at death.
What is an inheritance?
The number one expense retirees often underestimate.
What is healthcare?
The IRS allows married couples over age 50 to contribute additional money beyond normal retirement account limits through this provision.
What is a catch-up contribution?
Missing just 10 years of investing early in life can dramatically reduce this.
What is compound growth?
$10,000 invested at 8% for 30 years becomes approximately this amount.
What is about $100,000?
California's highest marginal income tax rate exceeds this percentage.
What is 13%?
This is generally considered the biggest financial risk in retirement.
What is outliving your money?
Business owners can often deduct contributions made to this type of retirement plan.
What is a SEP IRA?
This retirement plan allows employee salary deferrals through an employer.
What is a 401(k)?
Someone investing $500/month beginning at age 25 versus age 35 will likely have much more of this.
What is retirement wealth?
Municipal bond interest from California-issued bonds is generally exempt from these taxes.
What are California state income taxes?
Diversification is designed to reduce this.
What is investment risk?
Selling investments at a loss to offset gains is known as this strategy.
What is tax-loss harvesting?
The biggest advantage a 25-year-old investor has over a 55-year-old investor.
What is time?
The factor that matters more than picking the perfect investment.
What is starting early?
A Roth IRA can provide this type of retirement income.
What is tax-free income?
Most successful retirement plans are built around this simple habit.
What is consistent saving?
This type of investment can potentially generate federally tax-free income.
What is a municipal bond?