💡 Learn from AI

Retirement Planning 101

Understanding Retirement Options

Retirement Planning Options

When it comes to planning for retirement, there are several options available to individuals. Understanding the different retirement options available is crucial in creating a comprehensive retirement plan that meets an individual's financial needs and goals.

Defined Benefit Plan

One such option is a defined benefit plan, which is a retirement plan that provides a specified monthly benefit at retirement.

Defined Contribution Plan

Another option is a defined contribution plan, such as a 401(k) or 403(b), which allows employees to contribute a portion of their salary to an investment account that grows tax-free until retirement.

Individual Retirement Accounts (IRAs)

Individual retirement accounts (IRAs) are another popular retirement option, with traditional IRAs allowing individuals to contribute pre-tax dollars and Roth IRAs allowing after-tax contributions to grow tax-free.

Social Security

Finally, Social Security provides a guaranteed income stream in retirement, with benefits based on an individual's lifetime earnings.

Take quiz (4 questions)

Previous unit

Introduction to Retirement Planning

Next unit

Social Security and Retirement

All courses were automatically generated using OpenAI's GPT-3. Your feedback helps us improve as we cannot manually review every course. Thank you!