401(k), IRA, pension plans, retirement strategies, Social Security, and retirement income planning.
Master retirement planning with our progressive approach
Foundation terms you need to know first (10 terms)
Early retirement is the goal of achieving financial independence, allowing an individual to stop working for income before the traditional retirement age, often supported by passive income streams like those from real estate investments.
An Individual Retirement Account (IRA) is a tax-advantaged savings plan designed to help individuals save for retirement, offering benefits like tax-deferred growth or tax-free withdrawals.
Wealth accumulation is the process of increasing one's net worth over time through consistent saving, strategic investing, and growing assets, often with a focus on achieving long-term financial security and freedom.
Financial planning is the comprehensive process of managing your money to achieve personal and investment goals, involving budgeting, saving, investing, and risk management.
A retirement portfolio is a collection of investments specifically designed to generate income and growth to support an individual financially during their retirement years.
Complex strategies and professional concepts (4 terms)
A Self-Directed IRA (SDIRA) is a specialized retirement account allowing investors to hold alternative assets like real estate, private equity, and precious metals, offering enhanced control but requiring strict adherence to complex IRS regulations to avoid prohibited transactions and Unrelated Business Income Tax (UBIT).
Indexed Universal Life (IUL) is a type of permanent life insurance that offers a death benefit and a cash value component, where the cash value growth is linked to the performance of a market index, such as the S&P 500, typically with a floor and a cap on returns.
The Employee Retirement Income Security Act (ERISA) is a federal law that sets minimum standards for most voluntarily established retirement and health plans in private industry to protect individuals in these plans.
A specialized retirement investment structure where a Self-Directed IRA owns an LLC, granting the account holder "checkbook control" to directly invest in alternative assets like real estate, while maintaining tax-advantaged growth.
A reverse mortgage allows homeowners, typically seniors aged 62 or older, to convert a portion of their home equity into tax-free cash without having to sell their home or make monthly mortgage payments. The loan is repaid when the last borrower leaves the home permanently.
A Rollover IRA is an Individual Retirement Account used to transfer funds from an employer-sponsored retirement plan, such as a 401(k) or 403(b), into an IRA, typically without incurring immediate taxes or penalties.
A financial strategy involving moving pre-tax retirement funds from a traditional IRA or 401(k) into a Roth IRA. This conversion incurs taxes on the converted amount in the year of conversion, but allows for tax-free withdrawals in retirement, provided certain conditions are met.
Roth IRA tax-free withdrawals allow eligible individuals to access their contributions and earnings completely free of federal income tax in retirement, provided specific age and holding period requirements are met. This makes them a powerful tool for tax-efficient wealth accumulation, especially for real estate investors.
A Self-Directed 401(k) is a retirement plan for self-employed individuals and small business owners with no full-time employees, allowing them to invest retirement funds in a broader range of assets, including real estate, private equity, and other alternative investments, beyond traditional stocks and bonds.
A Self-Directed IRA (SDIRA) is a specialized retirement account allowing investors to hold alternative assets like real estate, private equity, and precious metals, offering enhanced control but requiring strict adherence to complex IRS regulations to avoid prohibited transactions and Unrelated Business Income Tax (UBIT).
A specialized retirement investment structure where a Self-Directed IRA owns an LLC, granting the account holder "checkbook control" to directly invest in alternative assets like real estate, while maintaining tax-advantaged growth.
Tax-free withdrawals refer to the ability to remove funds from an investment account or sale proceeds from an asset without incurring federal or state income tax, provided specific conditions are met.
Term life insurance provides coverage for a specific period, or 'term,' and pays a death benefit to your beneficiaries if you pass away during that time, offering financial protection without a cash value component.
Wealth accumulation is the process of increasing one's net worth over time through consistent saving, strategic investing, and growing assets, often with a focus on achieving long-term financial security and freedom.
Wealth management is a comprehensive financial service that combines financial planning, investment portfolio management, and other aggregated financial services to manage the wealth of high-net-worth individuals and families.
Explore complementary areas that build on retirement planning concepts
Personal budgeting, expense tracking, cash flow management, emergency funds, and savings strategies.
Credit scores, debt consolidation, loan management, credit repair, and debt payoff strategies.
Macroeconomic concepts, interest rates, inflation, Federal Reserve policy, and economic cycles.
Wills, trusts, estate taxes, succession planning, beneficiary planning, and wealth preservation.