COPYRIGHTED MATERIAL
WHAT DOES THAT MEAN?
TERM
DEFINITION
actuary
professional who uses statistics to assess the probability of an event, including life expectancy. ADEA; federal law prohibiting discrimination in hiring, firing, promotions, wages, and layoffs against anyone over age 40. how investments are divided among stocks, bonds, real estate, and other assets.
Age Discrimination in Employment Act
asset allocation
distribution
a withdrawal of money from a retirement account.
Individual Retirement Account matching contribution
“IRA”; an account for saving for retirement which has many tax benefits.
contribution by an employer to an employee’s retirement account that matches the dollar amount contributed by the employee. an organization that invests funds of investors in securities and other assets according to investment objectives; also called an asset manager. an investment fund made up of a large pool of money received from many investors. a financial arrangement whereby a homeowner borrows against the equity in their home. a type of IRA; contributions are not tax deductible, but earnings and withdrawals are tax free. “SEP IRA”; an IRA that a small business employer sets up on behalf of its employees which is funded by the employer. “SIMPLE IRA”; a retirement plan that a small business sets up for its employees; employee contributions may be matched by the employer. a retirement account where the account earnings grow tax free, but taxes are paid when the account holder makes withdrawals, which are not permitted before age 59 ½. a type of IRA; contributions are tax deductible and taxes on earnings are deferred until withdrawal. time table indicating the percentage of the value of the employer’s matching contribution the employee can keep when leaving the company. PRODUCT PREVIEW
money management firm
mutual fund
reverse mortgage
Roth IRA
Simplified Employee Pension Savings Incentive Match Plans for Employee tax deferred account
Traditional IRA
vesting schedule
Access vocab ashcards at www.c21publishing.com
Chapter 10 | Your Risky Retirement 176
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