RETIREMENT INVESTMENTS Investments 12.9. Vocabulary & other info. Individual Retirement Account(IRA) – An investment for retirement that matures with.

Slides:

Advertisements

Similar presentations

Individual Retirement Account (IRA) pp ….

Advertisements

IRAs: Traditional vs. Roth November 29, 2007 Michael Ruff Danielle Nick.

Federal Income Taxation Lecture 6Slide 1 Taxpayers using the Cash Method of Accounting  Only assets actually received during the calendar year are taxable.

Retirement Planning How to Become a Millionaire!.

Retirement Income Section Understanding Business and Personal Law Retirement Income Section 36.1 Retirement and Wills Section 36.1 Retirement Income.

Ch Saving and Investment Planning.  Saving- Storage of money for future use.  Financial experts recommend that people save 10-15% of their income.

CHAPTER 11-SAVING AND INVESTING OPTIONS 11-2 Medium-Risk Choices.

Lesson 13.5 IRA/Roth IRA July 2011Copyright © 2011 … REMTECH, inc … All Rights Reserved1 Introduction The IRA and Roth IRA are retirement accounts you.

Retirement Savings and Deferred Compensation

Solid Finances Sponsors MSU Extension This program is made possible by a grant from the FINRA Investor Education Foundation through a partnership with.

Review Microeconomics Macroeconomics OECD Currency values Transportation Languages and culture.

By Isaiah Dosono Period 8 03/4/ k plan allows a worker to save for retirement while deferring income taxes on the saved money and earnings until.

General Business Unit 10 Savings & Investment Strategies Chapter 34 Using Your Savings Plan.

1 © 2007 ME™ - Your Money Education Resource™ See page 127  Defined Benefit: monthly check for remainder of life Even better if it: increases each year.

Is Retirement Within Your Reach?. Is a retirement plan really necessary?

Retirement Basics Roth IRA Traditional IRA 401K. Roth IRA After tax contributions Best if you expect to be in a higher tax bracket during retirement than.

Today’s Topics Introduction Emergency Fund Life Insurance College Funding Retirement Planning Questions & Answers Entails these topics during 1 st client.

My Financial Philosophy By: Kyle Clemency

Traditional IRA Chapter 5 Employee Benefit & Retirement Planning Copyright 2011, The National Underwriter Company1 Types of IRAs Retirement accounts for.

Roth IRA Chapter 6 Employee Benefit & Retirement Planning Copyright 2009, The National Underwriter Company1 What is it? A form of IRA that –accepts contributions.

Hickam Air Force Base Financial Management. Brian S.C. Ching Senior Vice President Financial Advisor Wedbush Morgan Securities (808)  * This.

$200 $300 $400 Final Jeopardy $100 $200 $300 $400 $500 $100 $200 $300 $400 $500 $100 $200 $300 $400 $500 $100 $200 $300 $400 $500 $100 RetirementMore.

 IRA = Investment Retirement Account  Savings plan opened by yourself  You pick your investments: bonds, stocks, etc. What would your IRA be made up.

Workshop #2 Retirement Benjamin Groen February 17, 2011 SAE Financial Planning for Engineers Workshop Series.

McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 13 Retirement Savings and Deferred Compensation.

Chapter 13 Retirement Savings and Deferred Compensation © 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor.

Module 30 Retirement Planning. Menu The need for retirement planning Tax deferral and retirement planning Qualification of pension plans Other retirement.

1 Chap 16 – Retirement Planning Objectives: –Review of need to save for retirement –Understand types of plans and how they differ Defined benefit and defined.

Vocabulary. Section 9.1 Vocabulary Pre-tax dollars: Deposit into a retirement account before taxes have been taken out of your paycheck. This lowers your.

“Don’t put all your eggs in one basket.” Diversify!

INVESTMENT Where do most people deposit or save money? B ANK _______ (Hypothetical Rate of Return) Deposit $ _______ 1 st year 2 nd year 72 ÷

Research for Monday Night – Your Own Research Housing values Cars values Interest Rate for Cars, Houses, Savings, and Retirement Accounts – Bring your.

 A mutual fund is a business that pools money from many people to invest in various ways.  A mutual fund’s investors, in effect, own a portion of the.

RetirementRetirement Accounts How long will you live?

Chapter 14 Annuities and Individual Retirement Accounts

Personal Financial Literacy Mrs. VanWart 1.CD = certificate of deposit lock in a guaranteed interest rate for specific period of time usually slightly.

Ms. Lewis Personal Finance. General Overview There are no sure things when investing Any investment has a certain degree of risk Most securities are not.

Retirement Savings and Deferred Compensation

Individual Retirement Arrangements (IRAs) Traditional IRA and Roth IRA Ying Lin, Jane Fu, Anna ’ s SMD Base training only.

Or IRAs Independent Retirement Accounts.  Capital Gains are taxes on earnings from investments  This is considered income.

Minimizing Taxes. Reducing Taxable Income (Before AGI)  Retirement 401(k) - Offered through employer & IRA - Individual Retirement Account  Contribute.

I. Types of Investments Buying stock

Planning INFLATION- the general rise in price of goods and services (savings must exceed) You have to have a plan for retirement Years ago companies had.

The Retirement Problem: Why to start saving now By: Lauren Wederich

Retirement Accounts. Save $20,000 for 47 years with 8% interest Worth $744,640 10% interest, Worth $1,763,949 Every Million saved = $50,000 in retirement.

{ Chapter 36 Retirement and Wills Ch Retirement Income.

AIM Why is it important to invest for retirement? DO NOW What are different sources of income we can use for living expenses after retirement? INVESTING.

RYAN PAUL 401(k) Plans: What Employees Need to Know By Ryan Paul.

Road to Financial Maturity Investing & Retirement Vocabulary.

Chapter Ways to Save  Open a savings account  Bank  Credit union  Savings accounts earn interest  Interest is the money that banks pay depositors.

Saving for Retirement Congratulations Graduates! My gift to you: the secret to wealth!

1 Time is Money: Personal Finance Applications of the Time Value of Money.

Chapter 11. – A savings account pays interest, has no maturity date, and allows funds to be withdrawn at any time without penalty.savings account –

PERSONAL FINANCE TEST H. CLOSED END CREDIT InvestorWords.com closed-end credit Hide links within definitionsShow links within definitions Definition Credit.

Lecture 26 Qualified Plan Distributions and Loans You are taxed on any distributions from qualified plans You are also subject to penalties if you take.

© 2014 Cengage Learning. All Rights Reserved. Learning Objectives © 2014 Cengage Learning. All Rights Reserved. LO3 Demonstrate the process for determining.

SAVINGS – Plan for Financial Security. Why Save?Savings is a trade off. You agree to save now in order to spend in the future.  Save for the Unexpected.

Savings and Investing Personal Finance Unit 3. Savings Accounts A.Regular Savings Account (Passbook) 1.May be a minimum deposit required to open ($100)

Why should I save for retirement? Won’t I get Social Security? You'll get little, likely NO, Social Security.

Chapter 13 METHODS OF SAVING. Learning Objectives  Explore the ways in which savings can earn interest  Examine the different types of bank accounts.

CHAPTER 6 NOTES. Statement savings account: savings account where the depositor receives a monthly statement showing all transactions. Money market deposit.

Chapter 15 Planning for Retirement Dillon Swanson.

Retirement How much will I need?. Introduction How much money will you need at retirement? –Consider: Current Income Rate of Return Inflation Taxes What.

National Association of Student Financial Aid Administrators Presents… © NASFAA 2010 Filling the Piggybank: Saving for College.

401K IRA SEP SIMPLE KEOGH 403B What do these letters and numbers represent?

Bank accounts (After Tax)

Investment 101: Retirement Accounts

Understanding Required Minimum Distributions

Personal Finance Retirement Planning – 2 Individual Plans

Personal Finance Retirement.

Presentation transcript:

RETIREMENT INVESTMENTS Investments 12.9

Vocabulary & other info. Individual Retirement Account(IRA) – An investment for retirement that matures with interest tax deferred. Deferred means income tax is paid later. Roth IRA – Mature with interest tax free. Money invested in an IRA is tax deductible, but not Roth IRA. Basically, you will be taxed going in or out. Not both. A penalty is paid if funds are: withdrawn before 59 ½ years, unless used for college or 1 st home purchased. not withdrawn before 70 ½ years of age. ( not Roth IRA ) IRA’s are not job-related retirement plans. I=Individual

Formulas Needed

Casey is 72 and has an IRA with a fair market value of $98,000. Use the uniform lifetime table to determine his required minimum distribution. What penalty would he incur if he failed to take the distribution? What penalty would he have paid if he had made an early withdrawal of $10,000 to take a vacation?

Alyssa is 70 and has Roth IRA with a fair market value of $156,800. Use the uniform lifetime table to determine her required minimum distribution. What penalty would she incur if he failed to take the distribution? What penalty would she have paid if he had made an early withdrawal of $20,000 to pay for a grandchildren’s college education?