The period of life after ending a working or professional career. This word can also be used to refer to the money a person has saved to be used during this period of life.

An employer-sponsored retirement plan that makes regular payments, usually monthly, to a retiree until his or her death (a.k.a. pension plan).

A retirement plan in which an employee and/or employer contributes to the employee's individual account under the specific type of plan. The common plan types include 401(k), 403(b) and 457.

A defined-contribution plan for employees of companies. This plan is funded with an individual's pre-tax salary contributions where the funds continue to grow tax-deferred until the plan holder must begin taking withdrawals after age 70 1/2. Early withdrawals before the age of 59 1/2 are subject to a 10% penalty.

A tax-deferred retirement plan funded by employees of government and nonprofit organizations (e.g., public schools and hospitals, museums). This plan is funded with an individual's pre-tax salary contributions where the funds continue to grow tax-deferred until the plan holder must begin taking withdrawals after age 70 1/2.Early withdrawals before the age of 59 1/2 are subject to a 10% penalty.

Retirement plan designed primarily for government employees. No employer-matched contributions and early withdrawals are not penalized but are taxed.

The minimum amount that must be withdrawn from a retirement plan each year. Withdrawals must begin at age 70 1/2 unless a worker is still working at that age, becomes disabled, retires at age 55, dies and the funds are paid to a beneficiary or the withdrawal is for a major medical expense.

Federal law that sets standards for pension and retirement plans to guarantee that workers receive the benefits to which they are entitled.

A requirement of ERISA, this is the process of determining when the money that has been set aside in a retirement plan belongs to an employee. This period of time is gradual (7-10 years but varies between employers).

The ability of an employee to take 100% of the employer's retirement contribution with them when the employee leaves the employment of the employer even if they leave the company before retirement age.

The movement of funds from one qualified retirement account to another qualified account without incurring penalties and taxes. Most retirement plans are portable (easily moved).

A personal retirement plan that permits individuals to set aside money for their retirement years. There are two types: Traditional and Roth. These types of plans can be opened at a bank or insurance company.

A personal savings plan that gives you tax advantages for saving for retirement. Contributions to a traditional IRA are tax-deferred and tax-deductible. The account holder is taxed when the funds are withdrawn. Contributions are limited and subject to change each year by the IRS. This type of retirement account is subject to RMD rules.

The amount an employer and employees (including self-employed individuals) pay into (deposit) a retirement plan.

A personal savings plan that gives you tax advantages for saving for retirement. Unlike the Traditional IRA, contributions to this account are not tax-deductible and the account holder is not taxed when the funds are withdrawn during retirement. Early withdrawal penalties may be waived depending on the reason for the withdraw (such as first time purchases or to cover college expenses) RMD rules do not apply.

The process of determining how much money should be set aside each year for retirement and how you should invest those funds. Starting early means you have more time for your money to grow. Financial experts recommend individuals have both an employer-sponsored retirement plan and a personal retirement plan.

The idea that all three types of retirement vehicles (employer-sponsored plan, social security, and personal savings, investments and retirement plans) are needed to provide stable income security in retirement.

(1) Housing Needs

The assets (what is owned) and liabilities (what is owed) a person leaves when he or she dies.

The instructions for managing and distributing assets when the owner dies. Includes: assigning a power of attorney, preparing a will, and preparing a trust.

A legal document that gives a person the power to act for another person regarding financial and legal matters.

Legal document that states a person's wishes for his or her estate after death. In most states, people must be at least 18 to make a will and must be of sound mind. This legal document should accomplish three things:

Means the person must understand and know what he or she is doing and be mentally competent to make decisions for themselves.

A statement of instructions for specific medical treatment if a person becomes unable to make their own medical decisions. Primary Purpose: to make known the medical treatments the individual wishes to receive in the case of incapacitating injury or illness.

Legal process of:

The governmental institution that processes a deceased individual's will and estate.

An arrangement through which a person transfers assets to a trustee. Does not have to be probated. There are two types: (1) Living Trust, (2) Testamentary Trust.

A legal arrangement set up during an individual's lifetime through which that person transfers assets to a trustee.

A legal arrangement created under the terms of a will through which a person transfers assets to a trustee effective only upon that person's death.