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Catch-Up Strategies For Late Savers Game. Retirement Basics. Savings Tax Incentives. Increasing Savings. Stretching Savings. Special Issues. 100. 100. 100. 100. 100. 100. 100. 100. 100. 100. 100. 100. 100. 200. 200. 200. 200. 200. 300. 300. 300. 300. 300. 400. 400.

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  1. Catch-Up Strategies For Late Savers Game Retirement Basics Savings Tax Incentives Increasing Savings Stretching Savings Special Issues 100 100 100 100 100 100 100 100 100 100 100 100 100 200 200 200 200 200 300 300 300 300 300 400 400 400 400 400 500 500 500 500 500

  2. The Answer is: Commonly quoted retirement income replacement percentage for retirement savings planning purposes.

  3. The Question is: What is 70% to 80% of pre-retirement income?

  4. The Answer is: Two examples of household expenses that often end or decrease upon retirement.

  5. The Question is: What are: commuting costs, business travel, union dues, retirement plan contributions, business clothing, auto expenses, income taxes, mortgage payments

  6. The Answer is: Two examples of expenses that often begin or increase in retirement.

  7. The Question is: What are: travel, entertainment, hobbies, medical expenses, dental expenses, health insurance, long-term care insurance, volunteer expenses, gifts?

  8. The Answer is: The investment time horizon for retirees when making asset allocation decisions.

  9. The Question is: What is the rest of your life (lifetime)?

  10. The Answer is: Term for workers’ right to earn retirement benefits because they worked long enough for an employer to qualify for benefits.

  11. The Question is: What is vesting?

  12. The Answer is: Age at which workers qualify to make additional catch-up contributions to an IRA or a tax-deferred retirement savings plan through the year 2010.

  13. The Question is: What is age 50 (by December 31 of the calendar year)…or older?

  14. The Answer is: Retirement savings plan open to all workers with earned income and their spouses (whether or not the spouse is employed).

  15. The Question is: What is an individual retirement account (IRA)? There are two types: Roth and Traditional.

  16. The Answer is: Name of the tax-deferred retirement savings plan for employees of schools, colleges, and non-profit organizations.

  17. The Question is: What is a 403(b) plan?

  18. The Answer is: Name of a tax-deferred retirement savings plan available to the owner of a small business, whether it is a full time job or work “on the side.”

  19. The Question is: What is a SEP, SIMPLE, or Keogh plan?

  20. The Answer is: Maximum household adjusted gross income (AGI) level for a married couple filing jointly to receive some tax credit for their retirement plan contributions (through 2006).

  21. The Question is: What is a $50,000 AGI?

  22. The Answer is: Simple technique used to estimate how long, or at what interest rate, it takes a sum of money to double.

  23. The Question is: What is the Rule of 72?

  24. The Answer is: The practice of investing regular amounts at regular time intervals, such as 401(k) plan deposits taken out of a worker’s paycheck every pay period.

  25. The Question is: What is dollar-cost averaging?

  26. The Answer is: The reduction of investment volatility when retirement assets are held for long time periods.

  27. The Question is: What is time diversification?

  28. The Answer is: Two good times when it is easier to increase contributions to retirement savings plans because it doesn’t affect household spending patterns.

  29. The Question is: What is… 1. When you receive a raise or pay increase? 2. When household expenses decrease?

  30. The Answer is: A method to accelerate debt repayment to free up money to save for retirement and/or to decrease borrowing costs.

  31. The Question is: What is: contacting creditors to request a lower interest rate, transferring balance to a lower rate credit card or loan, using a PowerPay analysis, and paying more than the minimum required payment?

  32. The Answer is: Lower maintenance costs, property taxes, and utilities are a benefit of this catch-up retirement planning strategy but a major trade-off is less space and storage.

  33. The Question is: What is trading down (downsizing) to a smaller home?

  34. The Answer is: Postponing withdrawals from savings and increased Social Security and pension benefits are two advantages of this retirement catch-up strategy.

  35. The Question is: What is delaying (postponing) retirement?

  36. The Answer is: Age at which withdrawals from tax-deferred accounts, such as Traditional IRAs and 401(k)s- if a worker is retired- must begin.

  37. The Question is: What is age 70 1/2?

  38. The Answer is: Age that homeowners generally must attain to qualify for a reverse mortgage.

  39. The Question is: What is age 62?

  40. The Answer is: Type of retirement assets (by method of taxation) that generally should be withdrawn first to make money last longer.

  41. The Question is: What are taxable accounts (i.e., savings made with after-tax dollars) and tax-free assets such as municipal bonds?

  42. The Answer is: Name of an important estate planning document that should be prepared, especially after someone has an uncertain health prognosis.

  43. The Question is: What is a will, living will, and durable power of attorney?

  44. The Answer is: Popular name of a federal law that provides the opportunity for continued health insurance coverage to qualified workers who separate from their employer and agree to pay the premium.

  45. The Question is: What is COBRA?

  46. The Answer is: Length of time that unemployed workers and early retirees can receive continued health insurance from a former employer’s group plan if they pay the premium.

  47. The Question is: What is 18 months?

  48. The Answer is: Term used to describe a wide array of services ranging from assistance with daily activities of living at home to admission to a nursing home.

  49. The Question is: What is long-term care?

  50. The Answer is: Reason why potential inheritances should not be counted upon and included in a retirement savings calculation.

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