retirement econ test

what is an IRA

• individual retirement account

• international retirement account

• IBS(aubree)

• intellectual restoration account

what is a ROTH IRA

• an account where you can get all your taxes paid on store items back

• an account where you can set up your children with money

• a tax advantaged retirement account where you pay taxes on contributions now, but withdrawals are tax free later

• a savings account

Benefits?

• Age for withdrawal 59.5

• Income- you can only contribute if you make under $146,000 single and under $230,000 married

• Limit- 7,000 under 50- 8,000 over 50

• You get free money when you open the account if all taxes are paid on time

What is a ROTH 401k

• a retirement savings plan where you pay taxes on contributions now, but withdrawals are tax-free later

• a savings account you open once you turn 18 to start saving money as an adult.

• a credit card you open once you start a business

What is a match?

• free money that your employer will offer you

• something you can light a candle with

• when you put so much money in an account that your bank will match that amount to pay you later

What is the age and limit to withdraw from your 401k?

• Age- 59.5 to withdraw

  Limit- $23,500 under 50

• Age- 69.5 to withdraw

  Limit- $23,500 under 50

• Age- 59.5 to withdraw

  Limit- $27,500 under 50

• Age- 29.5 to withdraw

  Limit- $23,500 under 50

When is pension offered

• most of the time

• one you hit the age of 60

• once you hit the age of 25

How do people receive pensions

• to work a certain number of years that allows them to retire

• teachers must receive a certain number of years and 62 years of age

• everyone receives pension by the time they are 50 years old

• you must work the same job for at least 40 years.

What is the Social Security Fairness Act

• an act that was passed January 5th, 2025 that increases benefits for certain types of workers like teachers, firefighters, and police officers

• an act that was passed March 3rd, 1998 that states that everyone should be offered pension at any age

Term life insurance covers you for a set period of time, while whole life insurance covers you for your entire life. Term life is usually cheaper and simpler, while whole life is more expensive and complex.

Term life insurance

Covers you for a set period of time, such as 10 or 20 years

Usually has lower premiums than whole life

A good choice if you only need coverage for a specific period of time

A common rule of thumb for a term life insurance policy is to purchase coverage that equals 10 times your annual income; meaning if you earn $50,000 per year, you should consider a $500,000 policy

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