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study guide Exam 3 - contribute to this Advantage of...

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Personal Finance Exam #3 11/15/07 Retirement 3 cornerstones of retirement planning - personal, government, employer Traditional IRA - income limited, age limited, tax deductible but taxes paid at withdrawal, maximum contribution, taxed to beneficiaries, grows tax deferred Roth IRA - higher income ceilings, no age limit for contributions or distributions, tax free withdrawal of contributions, maximum contribution, tax free to beneficiaries, grows tax free, pay taxes now Employer plans (401 K, ect.) - 401 K: sponsored by employer, tax deferred, designed for employees of private corporations. 403 B: non-profit government, same contribution limits as 401 k. 457: employees of state and local governments and nonprofit organizations may
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Unformatted text preview: contribute to this. Advantage of retirement plans- investment of your money, can borrow money Life Insurance Types of insurance (term, who purchases each one, and various cash value plans) : How much life insurance do you need-Taxes Marginal tax bracket-Tax credit-Tax deductions-Exemptions & standard deductions-How you can reduce taxable income-Divorce Why concern over the financial implications of divorce-Why need to inventory assets in pre divorce planning-When a prenuptial agreement is appropriate-College Planning Types of savings/investment plans for college savings-What is their advantage-Housing Lender formulas-Points-PMI-Mortgage options-...
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