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is the period of life after ending a working or professional career
Retirement
is the process of determining when money that has been set aside in a retirement plan belongs to an employee
Vesting
is the process moving retirement savings from one qualified account to another qualified account without incurring penalties and taxes
Rollover
a retirement plan that makes regular payments, usually monthly, to a retiree until his or her death
Defined-benefit plan
a retirement plan in which an employee and/or employer contributes to the employee’s individual account under the defined plan
Defined-Contribution plan
an employer-sponsored retirement plan that allows an individual to deposit part of his or her savings into a tax-deferred investment
401(k) plan
is a retirement plan available to employees of nonprofit organizations such as public schools, colleges, hospitals, and public libraries
403(b) plan
is a type of defined-contribution retirement plan that does not have RMD rules and is primarily available to governmental employees
457 plan
is an employer sponsored retirement plan in which contributions are made with after-tax earnings, but withdrawals are not taxed
Roth 401(k) plan
is a personal account for setting money aside for retirement
Individual retirement account (IRA)
is an individual retirement arrangement in which contributions are tax-deductible, but withdrawals are taxed
Spousal IRA
is an individual retirement arrangement in which contributions are tax-deductible, but withdrawals are taxed
Traditional IRA
is an individual retirement arrangement in which individuals contribute after-tax income, but qualified withdrawals are not taxed
Roth IRA
is a contract with an insurance company that provides regular income for a set period of time, usually for life
Annuity
is a tax-deferred retirement plan that allows a business owner to open an IRA and make tax-deductible contributions
SEP-IRA
also called an individual 401(k) plan, is a self-employed retirement plan that allows tax-deductible contributions for an employer and his or her employees.
Solo 401(k) plan
matching contribution levels allowed for a business in which the employees are a married couple
The unique feature of the Solo 401(k) plan is the…
a tax-deferred retirement plan for businesses with 100 or fewer employees
SIMPLE IRA
consists of the assets and liabilities a person leaves when he or she dies
Estate
is a legal document that gives a person the power to act for another person regarding financial and legal matters
Power of Attorney
is a legal document that states a person’s wishes for his or her estate after death
Will - or last will and testament -
is a legal process of settling the affairs of an estate, paying final expenses, and distributing the balance of money and property to beneficiaries
Probate
is a statement of instructions for specific medical treatment if a person becomes unable to make medical decisions related to deathbed concerns
Living will
Is an arrangement through which a person transfers assets to a trustee, who then oversees and manages the assets on behalf of beneficiaries
trust
grantor
The creator of the trust is the
employer sponsored plan
social security
savings and investments
The three legged stool of retirement savings
Employee Retirement Income Security Act
What is ERISA?
defined-benefit plans
defined-contribution plans
2 common types of employment retirement plans include
pension plan
The defined-benefit plan is also recognized as a
Payroll Savings Plan
what is a PSP
401(k)
403(b)
457
What are common defined-contribution plans
tax-deferred
A great advantage of a 401(k) plan is the fact that it is
minimum amount that must be withdrawn from a retirement plan each year
RMD - Required Minimum Distribution
Those still working full time at age 72
Those who become disables and leaves the workforce
Those who retire and leave the work force at age 55
Those who dies and the account is paid to a beneficiary
if the withdrawal is for a major medical expense
Situations where the RMD does not apply
Individual Retirement Plan
What is IRA
a traditional IRA and a Roth IRA
Two primary types of IRAs include
immediate
tax-deferred
What are 2 types of annuities
SEP-IRA
Solo 401(k)
simple IRA
Keogh
annuities
Small business and Self-Employed retirement plans
anyone who earns income independent of an employer but is not organized as a business
What is a freelancer
Economic Growth and Tax Relief Reconciliation Act of 2001
what is EGTRRA
Savings Incentive Match Plan for Employees of Small businesses
What does SIMPLE IRA stand for
HR 10 plan
Keogh plan is also recognized as a
for the self employed
can invest in same securities as 401(k) plans and IRAs like stocks, bonds, and mutual funds
Contributions are taxable and RMD rules apply
Keogh Plan
employer sponsored plan
social security
savings and investments
3 legged stool of retirement
decide how their assets should be managed after death
provide for dependents
minimize tax liabilities
name an executor
assign a power of attorney
prepare a will
prepare a trust
An estate plan helps accomplish these goals
Article I- identification of family
Article II- payment of debts and expenses
Article III- disposition of property
Article IV- trust for children
Articles of a will
grantor
The creator of a trust is also called a
living trust
Testamentary trust
What are the two types of trusts?
This type of trust is set-up during lifetime and provides for the management of assets before death and distribution after death
living trust
This type of trust is under the terms of an individuals will and becomes affective when the person dies
testamentary trust
When the terms cannot be changed or ended, it is called a
irrevocable trust
When the terns can be changed or ended, it is called a
revocable trust
A person or institution named to manage assets on behalf of the beneficiaries is called
a trustee
A document that explains changes, or deletes provisions in a will
codical
stocks
bonds
mutual funds
REITs
Types of outside investments (investments not held in a retirement account) include:
power of attorney
wills
living wills
trusts
Estate planning tools include
health care directive
A living will is also called a
a last will and testament
A will is also referred to as
name beneficiaries
name an executar
name a guardian
A will should do three things:
Note 
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