Financial Terms Dictionary - Retirement Planning and Investing Guide

Perfect Your Retirement Planning
This practical financial dictionary for retirement terms helps you understand and comprehend most common retirement lingo. It was written with an emphasis to quickly grasp the context without using jargon. Each of the 70 retirement terms is explained in detail and also gives practical examples.

It is based on common usage as practiced by financial professionals. Compiled over the last 3 years from questions and feedback to financial articles published by the Wealth Building Course education program.

Understand Most Popular Retirement Terms
This book is useful if you are new to business, finance and retirement. It includes most retirement terms for businesses, investors, entrepreneurs and workers. It also covers the lingo that was introduced in the financial crisis of 2008 until 2017. With the alphabetical order it makes it quick and easy to find what you are looking for.

Financial Dictionaries Series
Additional financial dictionaries are available in this series. Please also check out: Accounting, Banking, Corporate Finance, Economics, Investments, Acronyms, Laws & Regulations, Real Estate & Trading.

Example: What is a Roth IRA?
A Roth IRA is a particular type of Individual Retirement Account. These Roth IRA’s prove to be special retirement plans that are given favorable tax treatment. The tax laws of the United States permit tax reductions on restricted amount savings for retirement accounts.

Roth IRA’s are different from other IRA’s in several ways. Among the chief of these is that tax breaks are not given on monies that are put into the plan and account with a Roth IRA. Instead, these tax breaks are given out on the money and its investment gains when they are taken out of the account at retirement. This chief appeal of Roth IRA’s is that they provide completely tax free income at retirement.

Other Roth IRA benefits over traditional forms of IRA’s exist as well. The restrictions placed on the kinds of investments that they are allowed to contain are fewer. You can turn them into gold IRA’s and annuity account IRA’s. Roth IRA’s can also contain all of the usual forms of investments that IRA’s contain, such as mutual funds, stocks, bonds, and certificates of deposit. More unusual investments such as real estate, mortgage notes, derivatives, and even franchises are allowed to be purchased with Roth IRA’s. These investment choices do depend on the capability and allowance of the Roth IRA trustee, or firm with which the plan is set up. Roth IRA’s also permit you to make un-penalized withdrawals of all direct contributions that you make, after the first five years of the account have and plan have passed, which is certainly not the case with traditional IRA’s.

These distributions, or withdrawals, are not taxed because they are taxed before the contributions are made. The penalties are waived for principal, as well as interest and earnings in the account, if the distributions are for purchasing a house or for disability or retirement withdrawal uses. If there is not a justified reason for the distribution, then the account earnings and income made above contributions will be taxed.

All IRA’s contain specific limits on the dollar amount of contributions that the government permits. This amount changes per year, and is set through the year 2011 now. Presently, you can put $5,000 per year into Roth IRA’s. There are income restrictions that govern whether you are allowed to make this full contribution as well. Individuals who make less than $106,000 are permitted to make full Roth IRA contributions, and those who make under $121,000 may make a partial contribution.