Chapter 7 Retirement Vocab

The amount by which assets exceed liabilities. a concept applicable to individuals and business as a key measure of how much an is worth

• net worth

• total assets

• total liabilities

• individual value

What you own; investments, checking/savings, retirement fund

• total liabilities

• total assets

• net worth

• individual value

What you owe: student loans, car, loans, mortgage

• net worth

• total assets

• total liabilites

• individual value

A legal declaration by which a person names one or more persons (executor) to manage his or her estate (property) and provides instructions for the distribution of his or her property after death.

• certificate

• letter

• journal

• will

A personal representative named in your will who settles debts and distributes property to beneficiaries, according to your wishes after your death.

• executor

• beneficiaries

• boss

• director

Person(s) or organizations named in your will to receive a portion of your estate’s property

• relatives

• bank

• beneficiaries

• boss

One of the basic sources of retirement for retired workers.

• social security

• 401K

• 403B

• IRA

a defined benefit plan

• pension

• social security

• mutal funds

• savings account

A retirement savings plan sponsored by an employer. It lets workers save and invest a peice of their paycheck before taxes are taken out

• IRA

• 401K

• Pension

• Social Security

You make contributions with money you’ve already paid taxes on (after-tax) and your money may potentially grow tax-free, with tax-free withdrawals in retirement, provided that certain conditions are met. (pre-tax)

• Roth IRA

• Traditional IRA

• 401K

• Social Security