Pensions Math in Action

An Action of withdrawal from one's position of occupation or from active working life

• Career

• Trustee

• Retirement

• Living Trust

Federal insurance program which provides benefits to retired individuals or those who are unemployed or disabled

• Pension

• Social Security

• 401k

• Certification of Deposit (CD)

Defined benefit plan which allows qualified workers to receive benefits when he/she retires

• Stock

• Retirement

• Pension

• 401K

Which of the below is an employer based retirement plan that both employees and employers contribute to?

• Traditional IRA

• Roth IRA

• 401K

• Pension

Which of the below is an employer based retirement plan that only employers contribute to?

• Traditional IRA

• Roth IRA

• 401K

• Pension

Which of below accounts is your contribution directly taken out of your paycheck?

• 401K

• IRA

What does tax deferred mean?

• You pay taxes when you put the money into the account and when you withdraw it.

• You pay taxes now when you contribute to your account.

• You pay taxes at a later date when the money is withdrawn.

When should you start putting money away for retirement?

• As soon as possible
• Never
• When you are 50.
• Whenever you feel like it.  

Bob starts saving $500 a month for retirement at age 25.  Ron starts saving $500 a month for retirement at age 40.  Who is going to be able to retire earlier most likely?  

• Ron
• They are likely going to have to both work until they are 99.  
• Bob
• They could both retire tomorrow.  

Tags

CCSS.8.F.A.2

CCSS.HSF.IF.C.9

In most situations it is okay to take money out of your retirement account to buy a car or something else.  

• True
• False