Career Planning and Development Concepts

Front

When should you begin saving for retirement?

Back

As soon as you enter the workforce.

Front

What are closing costs in real estate transactions?

Back

Closing costs are fees associated with finalizing a real estate transaction, including title searches, credit report fees, and title insurance.

Front

What is the maximum annual contribution to an IRA for individuals under 50?

Back

$6,000.

Front

What is Social Security?

Back

A United States government program established in 1935 that provides retirement benefits funded by payroll tax.

Front

What is an example of a defined benefit plan?

Back

A pension.

Front

What is a 401(k)?

Back

A retirement savings plan sponsored by an employer that allows employees to save a portion of their paycheck before taxes are taken out.

Front

What is the purpose of an IRA?

Back

An Individual Retirement Account (IRA) is designed to help individuals save for retirement with tax advantages.

Front

What is the difference between a traditional IRA and a Roth IRA?

Back

Traditional IRA contributions may be tax-deductible, and taxes are paid upon withdrawal; Roth IRA contributions are made with after-tax dollars, and withdrawals are tax-free.

Front

What are the benefits of starting to save for retirement early?

Back

Starting early allows for compound interest to grow savings over time, leading to a larger retirement fund.

Front

What is a budget?

Back

A budget is a financial plan that outlines expected income and expenses over a specific period.