Retirement: Words to Know

Updated 8 months ago

Tax deferred- Investments in which taxes payments are postponed. This occurs with ‘tax-deferred accounts’ such as IRAs (Individual Retirement Accounts) annuities and some bonds. Taxes are due under different circumstances depending on the vehicle, so check with your tax professional. Rollover- Retirement investments moved from one provider to another. The reasons for this may be job change or the consolidation of accounts to a new advisor. The change is reported to the IRS. Mont Carlo Simulation- This is a statistical calculation done by advisors to provide various scenarios to investors. Computer programs are generally used and it attempts to provide some degree of certainty about how long your income will last in retirement. For instance using Monte Carlo, withdrawing your assets at a 4% withdrawal rate per year provides a 90% certainty hat your will have income for your lifetime. The Monte carlo simulation expresses answers in probablilites. Annuitization- The process of converting a sum into a stream of payments. Particulars vary. You can have a flow of income for a certain amount of years (period certain) or a lifetime. Annuitization provides payments over a period of time.Citation:monte carlohttp://www.freeannuityrates.com/annuities/article.php?title=Annuitization-ExplainedMarion R. Syversen, MBA – PresidentNorumbegaFinancial207.862.2952Marion@NorumbegaFinancial.com Check out our website that includes weekly streaming videosWWW.NorumbegaFinancial.com Vote Norumbega Financial for Bangor’s Best Financial Planning Firm at Market Surveys of America In compliance with requirements from FINRA, all e-mail sent via the WSFG domain will be subject to review and archiving by Wall Street Financial Group, Inc. Email management, archiving & monitoring technology powered by Smarsh, Inc. Disclosure:Only securities and advisory services offered through Wall Street Financial Group, Inc. Registered Investment Advisor. Member FINRA/SIPC. Wall Street Financial Group, Inc. and Norumbega Financial are separate entities, independently owned and operated. Information provided should not be construed as tax advice: you should speak with a tax advisor.


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