Help
Options
Didn't know it?
click below
click below
Knew it?
click below
click below
Don't Know
Remaining cards (0)
Know
retry
shuffle
restart
0:00
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
chapter 3 dave ramse
| Question | Answer |
|---|---|
| invest ____% of your household income into Roth IRAs and pre tax retirement plan | 15 |
| tax-favored means that the investment is in a _____ ______ or has a special tax treatment | qualified plan |
| What are qualified plans? | Individual Retirement Arrangement, Simplified Employee Pension Plan, and 401k, 403b, 457 |
| when it comes to IRAs, who is eligible? | everyone with an earned income |
| the maximum annual contribution for income earners is _______ as of 2008 | 5,000 |
| IRA is not a type of _______ at a bank. it is the tax treatment on virtually any type of investment | investment |
| the Roth iRA is an _________ iRA that grows tax _______ | after tax, free |
| the roth ira has more ______ | choices |
| the roth ira has a ________ _________ at retirement | higher bracket |
| investing 5,000 pre tax is different than investing 5,000 ______ _____ it takes more than 5,000 to get home with 5,000 after tax. it would take ________ | after tax, 6,000 |
| there are no taxes when you cash it out so it forces you to ______ more | invest |
| it has tons of __________ | flexibility |
| who is eligible for roth iras? | singles with 100% contribution with income less than 95,000. phase out between 95,000-110,000. not eligible above 110,000 |
| who is eligible for roth iras? | married filed jointly - 100% contribution with income less than 150,000. phase out between 150,000-160,000. not eligible over 160,000 |
| in a roth ira, there are _________ and ________ withdrawals at any time equal to contributions. after the emergency fund is depleted you have a fall back | tax free and penalty free |
| in a roth ira, after five years you can make tax free, penalty free withdrawals for 100% under what conditions | over 59 and a half years old, because of death or disability, first time home purchase (max $10,000) |
| a _____-emplolyed person may deduct up to _____ of their net profit on the business by investing in a SEPP | self, 15 |
| in a SEPP, the maximum deductible amour is _________ (as of 2007) and all employees who have been with the firm more than three of the last five years must receive the same percentage of their pay into a retirement plan | 45,000 |
| most companies have completely done away with traditional _____ plans | pension |
| traditional pension plans have been replaced by self _________ and _______ plans like the 401(k) | funded, matching |
| the 401(k) is ______, unlike the pension plan which was an asset of the company. if the company went broke you lost a pension | yours |
| if you don't put money into a 401(k), there will be _____ in the fund. a pension, however, is funded _______ by your company | nothing, automatically |
| do not use a _______ _______ _______ (GIC) or ______ _______ to fund your plan | guaranteed investment contract, bond funds |
| what do GIC and bond funds do to your 401 k | its like a CD inside of your 401k, you will only make about 3-4% and it will not help you win long term |
| you should be funding your plan whether your company ______ or not | matches |
| you should always ______ ______ retirement plans to an______ when you leave the company | rollover, ira |
| don't bring the money home, instead move it straight into an ira by a _______ _________ | direct transfer |
| you should roll to a roth only if | you will have over 700,000 by 65, you can afford to pay the taxes separately not from the IRA, you understand all taxes will become due on the rollover amount |
| never ______ on your retirement plan | borrow |
| for federal government workers who have the standard thrift plan, we recommend _____ in the C fund, _____ in the s fund, and ____ in the i fund | 60%, 20%, 20% |
| how should you invest 15% of household income into roth iras or other pre tax retirement? | fund 401k or other employer plan up to the match (if applicable) above the match, fund roth iras. if there is no match, start with roth iras complete 15% of income by going back to your 401k or other company plans |
| save for college by first ousting educational savings accounts, nicknamed "_________ ________" | education ira |
| if you want to save more or if you don't meet the income limits for an ESA, use a certain type of ______ ______ | 529 plan |
| never a buy a plan that does what | freezes your options automatically changes your investments based on the age of the child |
| only when your 529 plan does those two things, then move to an ______ or ______ plan | UTMA OR UGMA |
| while UTMA and UGMA are ways to save with reduced taxes, it is ______ as good as the other options | not |
| how to UTMA and UGMA work | the account is listed in the childs name and a custodian is named, usually parent or grandparent. this person is the manager until the child reaches 21 (18 for UGMA). at this age the child can do with it as they please |
| what are the three nevers for college savings | never save for college using insurance never save for college using saving bonds (only earns 5-6%) never save for college using prepaid tuition |
| if you need the money for college in 5 years, ESA is not the right choice what is? | money market mutual fund |
Created by:
jackjack109