Retirement Planning and Investments

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Questions and Answers

What is a Traditional 401(k) Plan?

A retirement savings plan, sponsored through your employer who will often match your contributions, that allows an individual to save for retirement and have the savings grow while deferring taxes until funds are withdrawn

What is a Traditional IRA (Individual Retirement Account)?

An individual retirement account that allows a person to set aside pre-tax income up to a specified amount each year

What are Treasury Bonds?

A bond, generally considered to be a risk-free investment, issued by the U.S treasury with a maturity of more than 10 years.

What is a Target Date Fund (TDF)?

A type of investment fund that rebalances its asset mix over time based on a projected retirement year Signup and view all the answers

What is a stock exchange?

A market where shares in corporations are bought and sold through an organized system Signup and view all the answers

What is stock?

A share of the value of a company, which can be bought, sold, or traded as an investment and which gives the investor small partial ownership of the company Signup and view all the answers

What is Social Security?

A federal program that provides monthly benefits to millions of Americans, including retirees, military families, surviving families of deceased workers, and disabled individuals. Signup and view all the answers

Flashcards

Traditional 401(k) Plan

Traditional IRA (Individual Retirement Account)

An individual retirement account that allows a person to set aside pre-tax income up to a specified amount each year

Treasury Bonds

A bond, generally considered to be a risk-free investment, issued by the U.S treasury with a maturity of more than 10 years.

Target Date Fund (TDF)

A type of investment fund that rebalances its asset mix over time based on a projected retirement year

Signup and view all the flashcards

Stock exchange

A market where shares in corporations are bought and sold through an organized system

Signup and view all the flashcards

Stock

A share of the value of a company, which can be bought, sold, or traded as an investment and which gives the investor small partial ownership of the company

Signup and view all the flashcards

Social Security

A federal program that provides monthly benefits to millions of Americans, including retirees, military families, surviving families of deceased workers, and disabled individuals.

Signup and view all the flashcards

Study Notes

A 401(k) plan is a retirement savings plan sponsored by an employer, who will often match contributions, allowing individuals to save for retirement and defer taxes until withdrawal.
Traditional IRA is an individual retirement account that allows a person to set aside pre-tax income up to a specified amount each year.
Treasury Bonds are issued by the U.S. Treasury with a maturity of more than 10 years, and are generally considered risk-free investments.
Target Date Fund (TDF) rebalances its asset mix over time based on a projected retirement year.
Stock exchange is a market where shares in corporations are bought and sold through an organized system.
Stock represents a share of a company's value, granting the investor partial ownership.
Social Security is a federal program providing monthly benefits to retirees, military families, surviving families, and disabled individuals.