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25 Cards in this Set
- Front
- Back
Pre-Tax means the government allows you to invest money after taxes are taken out.
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False, before.
Hint; PRE |
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ESA's are a good way to save for college
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True.
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Once you have a fully funded emergency fund put 10% of your income into retirement plans.
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False. put 15% of your income into retirement plans.
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457 plans are designed for employees of non profit organizations such as hospitals and schools
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False. 403 (b)
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If we used a race analogy to describe building wealth, it would be most like a marathon.
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True.
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A retirement plan for self employed people.
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SEPP
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A deferred compensation plan.
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457
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Typical retirement plan for most companies.
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401(k)
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Retirement plan found in non-profit groups like schools and hospitals.
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403(b)
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Save for college 1st by using this type of account:
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Educational Savings Account (ESA)
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Used after you maxed out your ESA.
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UTMA
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Movement of tax-differed retirement money from one plan to another.
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Rollover.
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Invest 15% of income into retirement.
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Baby step 4
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Manager of a childs UTMA account untill he or she reaches age 21
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Custodian
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College funding
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Baby step 5
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Jason works for a company that matches his 401k contribution up to 5%. He maximizes his amount to 200/month at the end of the year how much money will be in his account?
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4,800$
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What definition best explains an ira?
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Tax treatment on virtually any type of investment.
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The primary difference between the roth ira and traditional ira.
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Roth ira's grows tax free.
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When are you not able to make a tax free withdrawal from your roth ira?
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When changing careers / temporary drop of income.
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what is best for retirement when you leave a company?
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Direct transfer into ira.
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if you have 3000$ invested in a roth ira, what is true about your contribution?
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You already paid taxes, so itll grow tax free.
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What is a good way to save for college?
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Esa.
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Using the rule of 72, how long will it take your money to double at a 12% interest?
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6 years.
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When looking for a financial counselor to help you with your investments, always go with:
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A counselor with the heart of a teacher who explains everything to you.
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What does baby step 5 say about saving money for your children college.
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use tax favored plans.
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