DOC PREVIEW
UA CSM 204 - Chapter 18
Type Lecture Note
Pages 5

This preview shows page 1-2 out of 5 pages.

Save
View full document
View full document
Premium Document
Do you want full access? Go Premium and unlock all 5 pages.
Access to all documents
Download any document
Ad free experience
View full document
Premium Document
Do you want full access? Go Premium and unlock all 5 pages.
Access to all documents
Download any document
Ad free experience
Premium Document
Do you want full access? Go Premium and unlock all 5 pages.
Access to all documents
Download any document
Ad free experience

Unformatted text preview:

CSM 204 Chapter 18 LectureOutline of Previous LectureI. Purpose of Life InsuranceII. Life Insurance Needs Over the Life CycleIII. Estimating Life InsuranceIV. Types of Life Insurance CompaniesV. Term Life Insurance (Temporary Life Insurance)VI. Whole Life InsuranceVII. Other Types of Life InsuranceVIII. Life Insurance Contract ProvisionsIX. Buying Life InsuranceX. Settlement OptionsXI. Quiz 4-3Outline of Current LectureI. Misconceptions About Retirement PlanningII. Key Retirement Planning AdviceIII. The Importance of Starting EarlyIV. Understanding Social SecurityV. Why Invest in Tax-Sheltered Retirement AccountsVI. Employer-Sponsored Retirement PlansVII. Personal Retirement PlansVIII. Avoiding the Big MistakesIX. Quiz 4-4Current LectureChapter 18 – Starting Early: Retirement PlanningMisconceptions About Retirement PlanningMy expenses will decreaseMy retirement will last 15 yearsMy Social Security and pension are enoughI will have adequate health coverageThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.There is plenty of time to startSaving just a little will not helpKey Retirement Planning AdvicePut your own money away for retirementWith an employer-sponsored plan contribute to maximize matching fundsStart earlySave a lot12%-15% in 20’s20-25% if olderInvest wiselyDon’t be too conservativeDo not withdraw the funds until retirementPlan the distributionThe Importance of Starting EarlyTo take advantage of the time value of moneyPeople are spending more years in retirementInflation will erode purchasing powerSocial Security is uncertainPension plans are being terminatedUnderstanding Social SecurityBecoming qualifiedEstimating benefitsFull-benefit age retirementYounger age retirementLater age retirementSpouse’s benefitThe full benefit for a spouse is one-half of the retired worker’s full benefitTo qualify for disability benefits, it takes 6 out of the last 13 quartersWhy Invest in Tax-Sheltered Retirement AccountsContributions may be tax deductibleEarnings are tax deferredYou accumulate more moneyYou have ownership and portabilityWithdrawals might be tax freeEmployer-Sponsored Retirement PlansDefined Contribution PlanA plan – profit sharing, money purchase, Keogh, or 401(k) – that provides an individual account for each participant; also called an individual account planDefined Benefit PlanA plan that specifies the benefits the employee will receive at the normal retirement agePlan Portability and ProtectionFeature that enables you to carry earned benefits from one employer’s pension plan to another’s when you change jobsPersonal Retirement PlansIndividual Retirement Account (IRA)TraditionalLets your contribute up to $5,500 in 2013$6,500 if over 50RothContributions are not tax deductible, but earnings accumulate tax-freeSpousalLets your contribute up to the amounts of a traditional on behalf of your nonworking spouse if you file a joint tax returnRolloverA traditional IRA that accept rollovers of all or a portion of your taxable distribution from a retirement plan or from another IRAEducationGrow tax-free and can be invested any way you chooseCan give $2,000 a year to each childSEP-IRAAn individual retirement account funded by the employerKeough PlanA plan in which tax-deductible contributions fund the retirement of self-employed people and their employeesAnnuitiesA contract that provides an income for lifeDeferredIncome payments start at some future dateInterest builds up on the money you depositSingle Premium DeferredLump sum paymentAvoiding the Big MistakesUnderestimating your savings goalStarting too lateNot contributingBeing too conservativeTaking money out before retirementUnderestimating life spanOverestimating how much you can withdraw at retirementQuiz 4-41. False2. Inflation will help increase your spending power3. 404. False5. Overestimating your savings


View Full Document
Download Chapter 18
Our administrator received your request to download this document. We will send you the file to your email shortly.
Loading Unlocking...
Login

Join to view Chapter 18 and access 3M+ class-specific study document.

or
We will never post anything without your permission.
Don't have an account?
Sign Up

Join to view Chapter 18 2 2 and access 3M+ class-specific study document.

or

By creating an account you agree to our Privacy Policy and Terms Of Use

Already a member?