RCSC 150B2 Chapter Notes - Chapter 4: Individual Retirement Account, 529 Plan, Financial Institution
Document Summary
There are three faithful friends an old wife, an old dog, and ready money ~ benjamin franklin. Lo 4-1 identify which bank products are the best fit for the different personal finance life stages. Lo 4-2 use and efficiently manage checking and share draft accounts. Aligning financial instruments with personal finance life stages: dependent life stage (age 0-15) Independent life stage (age 16-24: early family life stage (age 25-40, empty nest life stage (age 41-65, retirement life stage (age 66+) Independent life stage (age 16-24: checking account debit card, electronic (internet) banking and bill payment services, credit cards, auto loans, student loans, private student loans. Ira (individual retirement account): funds set aside to be withdrawn after age 59 1/2 without penalty: traditional ira: contributions reduce your taxable income - pretax contributions; money or interest earned grows tax-deferred until the year it is withdrawn. Tuesday, september 27, 2016: roth ira: contributions are made after taxes on your income.