Retirement and investments

Question 1

an emplyer pays a person until retirement until death as a form of retirement compensation. These forms of retirement have gone away because they are expensive

Answer 1

pension

Question 2

where an employee and employer support a retirement account

Question 3

for federal employees only

Answer 3

thrift savings plan (TSP)

Question 4

retirement account for employees working at a for profit company

Answer 4

401k

Question 5

retirement account for employees working at a not for profit

Answer 5

403b

Question 6

When a company attempts to incentivize employees to contribute to their retirement; both employee and employer support retirement account

Answer 6

matching

Question 7

signals that the employee will pay taxes first before investing and not pay taxes upon withdrawall

Answer 7

Roth

Question 8

Explain why private pension has declined over the past three decades

Answer 8

Pensions have become expensive because life expectancy rates have increased, meaning company’s would have to pay retirees over a longer period of time.

Question 9

TSP vs 401k, 401k vs 403b

Answer 9

TSP is for federal employees only, 401k is for any individual with access to an employer based account. 401k is used for for-profit organizations while 403b is for non for profit.

Question 10

Liquidity

Answer 10

how easily/quickly you can access money

Question 11

securities

Answer 11

any financial asset or investment that has value

Question 12

Annuities

Answer 12

a form of insurance or investment entitling the investor to a series of annual sums.

Question 13

diversification

Answer 13

limiting risk by investing or purchasing securities in multiple areas

Question 14

share

Answer 14

unit of equity in a company

Question 15

Ticker

Answer 15

stock symbol: Ex apple= AAPL

Question 16

S &P 500

Answer 16

worlds most well-known stock index fund

Question 17

Risk

Answer 17

the possibility of losing money in an asset

Question 18

Emergency funds are…

Answer 18

not invested, cash savings account for unexpected expenses, usually accounts with a starting and base value of 1,000 dollars

Question 19

Sinking funds are

Answer 19

MAY be invested, cash in another savings account or low risk investment account, for specific purchases you expect

Question 20

Wealth building funds are

Answer 20

PURPOSEFULLY invested , earning accounts that generate return and interest for you, used for your future self, started with your first income

Question 21

Employer based retirement

Answer 21

401k, 403b

Question 22

Individual Retirement Account

Answer 22

IRA, your singular contributions

Question 23

what kinds of people pay tax now or later

Answer 23

high tax bracket expecting low tax bracket placement= traditional

low tax bracket expecting high tax bracket in retirement= roth