15 terms

Lesson 10: Your Risky Retirement

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Terms in this set (...)

actuary
professional who uses statistics to assess the probability of an event, including life expectancy.
Age Discrimination in Employment Act
ADEA; federal law prohibiting discrimination in hiring, firing, promotions, wages, and layoffs against anyone over age 40.
Age Discrimination in Employment Act
federal law prohibiting discrimination in hiring, firing, promotions, wages, and layoffs against anyone over age 40; ADEA
distribution
a withdrawal of money from a retirement account.
Individual Retirement Account
"IRA"; an account for saving for retirement which also has many tax benefits.
matching contribution
contribution by an employer to an employee's retirement account that matches the dollar amount contributed by the employee.
money management firm
an organization that invests pooled funds of investors in securities and other assets according to investment objectives; also called an asset manager.
mutual fund
an investment fund made up of a large pool of money received from many investors.
reverse mortgage
a financial arrangement whereby a homeowner borrows against the equity in their home.
Roth IRA
a type of IRA; contributions are not tax deductible, but earnings and withdrawals are tax free.
Simplified Employee Pension
"SEP IRA"; an IRA that a small business employer sets up on behalf of its employees which is funded by the employer.
Simplified Employee Pension
an IRA that a small business employer sets up on behalf of its employees which is funded by the employer; SEP IRA
tax deferred account
a retirement account with where the employee pays no tax on what the account earns, but pays taxes when they make withdrawals, which are not permitted before age 59 ½.
Traditional IRA
a type of IRA; contributions are tax deductible and taxes on earnings are deferred until withdrawal.
Traditional IRA
a type of Individual Retirement Account where contributions are tax deductible and taxes on earnings are deferred until withdrawal.