Describe and differentiate between Keogh plans, and individual retirement arrangements. What's the difference between a nondeductible IRA, and a Roth IRA? What is an annuity? Briefly explain how an an Explain the concept of why you use the $1 table in some calculations vs. the annuity...
Discusses the differences between an education individual retirement account and an Internal Revenue Code Section 529 college savings plan in the United States. Comparison of a Section 529 plan with a pre-paid tuition plan; Contributions to the plans; Investment limitations.Lathrop...
TSA stands for tax-sheltered annuity, a type of 403b plan, and IRA stands for individual retirement account. Both are tax-advantaged ways to say money for retirement.
What is the difference between life insurance and annuity? Compare and contrast a traditional IRA with a Roth IRA with respect to income limits for eligibility. Discuss the two most commonly used ways to determine a person's life insurance needs. Name...
ETFs and index mutual funds tend to be generally more tax efficient than actively managed funds. And, in general, ETFs tend to be more tax efficient than index mutual funds. Consider an index mutual fund, if: You invest frequently If you make regular deposits—for example, you use dollar-...
Bonds and certificates of deposit are generally safe ways to earn returns on your savings, but they play different roles in your financial life. Here’s what to know. First, what are CDs and bonds? A CD is a type of savings account in which you agree to lock up some of your money ...
This could be a con if you’re exclusively investing in an employer-sponsored plan and are interested in purchasing shares of an ETF. That said, you can invest in both index mutual funds and ETFs through an individual retirement account (IRA). How to choose between index funds and ETFs ...
saved funds. Ever since there was a shakeup in the 403(b) market a few years ago, I’ve seen quite a few mutual fund companies pull out. That means you’re seeing a lot moreinsurance companiesoffer some sort of annuity product in their plans. Personally, I’m not a big fan of ...
annual, or lump-sum income during retirement. An annuity makes periodic payments for a certain amount of time, or until a specified event occurs (for example, the death of the person who receives the payments). Money invested in an annuity grows tax-deferred until it is withdrawn.11 ...
You can convert your life insurance to an annuity if your life insurance has cash value. The annuity will then invest and generate income based on your cash value balance. You give up the life insurance death benefit for more income and investment guarantees. However, you cannot convert an an...