Retirement Planning Financial Terms & Definitions

27 terms in this topic

Retirement planning involves identifying sources of income, estimating expenses, implementing a savings program, and managing assets and risk. It also includes projecting future cash flows to ensure financial independence in retirement.

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Pension

A pension is a type of retirement plan that promises to pay a regular, fixed income to employees after they…

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Rollover

A rollover is the process of moving assets from one retirement account to another without triggering taxes or penalties. This…

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Roth IRA

A Roth IRA (Individual Retirement Account) is a powerful retirement savings vehicle that offers tax-free growth and tax-free withdrawals in…

Full Definition
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SEP-IRA

A SEP-IRA, or Simplified Employee Pension Individual Retirement Arrangement, is a retirement savings plan designed for self-employed individuals and small…

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SIMPLE IRA

A SIMPLE IRA (Savings Incentive Match Plan for Employees) is a tax-deferred retirement plan designed for small businesses with 100…

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Social Security

Social Security is a federal program in the United States that provides financial support to retired workers, people with disabilities,…

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Fixed annuity A fixed annuity is a type of insurance contract designed to provide a guaranteed, steady stream of income,… Full Retirement Age (FRA) Full Retirement Age (FRA) is the age at which you become eligible to receive your full, unreduced Social… Immediate annuity An immediate annuity is a financial contract between you and an insurance company that converts a lump sum… Pension A pension is a type of retirement plan that promises to pay a regular, fixed income to employees… Qualified plan A qualified plan is a retirement savings plan that meets the requirements of the Internal Revenue Code (IRC)… Required minimum distribution (RMD) A Required Minimum Distribution (RMD) is the minimum amount you must withdraw from certain retirement accounts each year… Rollover A rollover is the process of moving assets from one retirement account to another without triggering taxes or… Roth conversion A Roth conversion is a financial strategy where you transfer funds from a Traditional IRA (or other eligible… Roth IRA A Roth IRA (Individual Retirement Account) is a powerful retirement savings vehicle that offers tax-free growth and tax-free… SEP-IRA A SEP-IRA, or Simplified Employee Pension Individual Retirement Arrangement, is a retirement savings plan designed for self-employed individuals… SIMPLE IRA A SIMPLE IRA (Savings Incentive Match Plan for Employees) is a tax-deferred retirement plan designed for small businesses… Social Security Social Security is a federal program in the United States that provides financial support to retired workers, people…