About This Chapter
Retirement Savings & Income Planning for Individuals - Chapter Summary
This chapter looks at various components of retirement savings and income planning for individuals. You'll learn about different options and processes while familiarizing yourself with related terminology and regulations. Topics covered include social security, medicare and medicaid, sources of income in retirement, and all of the following:
- The steps and necessary calculations of retirement planning
- Pension plans
- Qualified retirement plans
- Traditional and Roth IRAs
- Forms of tax-advantaged retirement investments
- Rules of minimum distributions for retirement savings accounts
- Methods of retirement income withdrawal
The practice quizzes corresponding to each lesson give you the ability to keep tabs on your understanding subject-by-subject so you don't get lost in the material. These quizzes can be taken as many times as you feel necessary and can also be printed as worksheets. And, if you do get stuck at any point in the chapter, you can always ask our professional instructors for help via the teacher or help tab.
1. Retirement Planning: Steps & Calculating Needs
In this lesson, we will examine considerations involved in planning for retirement. Additionally, this lesson will review the amount of income that retirement investing should provide, as well as how to calculate that approximate amount.
2. Social Security: Legislation and Issues
Passed as part of the New Deal in 1935, the Social Security Act established benefits for retired and unemployed people. This lesson generally explains the Social Security Act and the Federal Insurance Contributions Act.
3. Medicare and Medicaid: Definitions & Functions
This lesson will teach and define what Medicare and Medicaid are, what they are for, what they provide, and for whom they were established for. We'll also cover the four main parts of Medicare.
4. Sources of Income in Retirement
In this lesson, learn several key ways that older adults pay their bills after retiring from work. You'll see how people can have different experiences in funding their retirement.
5. Understanding Retirement and Pension Plans
Businesses use many different types of retirement plans for their employees. Two of the most common are pension plans and 401(k) plans. This lesson discusses these two kinds of retirement plans.
6. What is a Qualified Retirement Plan? - Rules & Options
This lesson includes an overview of qualified retirement plans, including explanations of the two types (defined benefit plan and defined contribution plan), rules, and options regarding withdrawals, and penalties.
7. Traditional IRA: Definition & Benefits
This lesson covers the definition of Traditional Individual Retirement Account (IRA), features of a traditional IRA and its benefits for retirement planning and taxes.
8. What Is a Roth IRA? - Definition, Rules & Benefits
Explore the concept of a Roth IRA - an account that can potentially lead to tax-free growth. This lesson will define a Roth IRA and explain the associated rules and benefits.
9. Tax-Advantaged Retirement Investments: Types & Definitions
Many employees are familiar with IRAs and 401(k) retirement plans. But investors wishing to maximize the use of tax-advantaged accounts for retirement have more options than just those two. Let's review a few investments that offer tax advantages.
10. Required Minimum Distributions for Retirement Savings Accounts
In this lesson we will review when a retiree must withdraw funds from a retirement savings account, and how much they must withdraw, as part of the required minimum distributions mandated by law.
11. Retirement Income Withdrawal Strategies
In this lesson, we will discuss various retirement income withdrawal strategies that can be used to generate the most income and minimize the impact of taxes.
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Other chapters within the CFP Certification Exam Study Guide - Certified Financial Planner course
- CFP Board Rules & Regulations
- Financial Planner Professional Conduct & Regulation
- General Principles of Financial Planning
- Education Financial Planning
- Individual Insurance Planning
- Risk Management & Business Insurance Planning
- Types of Investment Vehicles
- Investment Planning
- Tax Planning
- Retirement Savings & Income Planning for Businesses
- Estate Planning Strategies
- Financial Planning for Personal Life Situations
- CFP Client Relationship
- CFP Certification Exam Study Guide - Certified Financial Planner Flashcards