6-5:Retirement Planning

When planning for retirement, you need to determine

• how much money you need to live in a nursing home or retirement center.

• how much money you want your children to inherit.

• how much money you will need and how many years you will need it.

• where you plan to live after you quit working.

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

• Traditional IRA

• Roth IRA

• 401K

• Pension

What is the difference between a Traditional and Roth IRA?

• A traditional IRA's contributions are not taxed until you withdraw them at retirement. A Roth IRA's your contributions are taxed when you invest.

• A Roth IRA's contributions are not taxed until you withdraw them at retirement. A Traditional IRA your contributions are taxed when you invest them in.

Which type of account will your employer often "match" your contributions?

• Traditional IRA

• 401K

• Roth IRA

• Pension

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

• Pension

• Social Security

• 401k

• Certification of Deposit (CD)

If your company has a retirement plan,

• you can wait until you are in your 40s to start participating without any costs.

• you should sign up as soon as possible so your investment will start growing.

• . only people who plan on retiring early need to participate in the company plan.

• you should wait until your bills are paid before saving money for retirement.

When should you start putting money away for retirement?

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

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

• True
• False

What age can you retire and receive 100% of your benefits?

• 62

• 67

• 65

• 70