Question

. What are the three biggest pitfalls to sound retirement planning?

2. What are the most important sources of retirement income?

3. What is a self-directed, employer-sponsored pension plan?

4. What is an IRA?

5. What are the four classifications of annuities?

Answer 1

Question 1:

The three pitfalls are:

- Starting at a very late stage

- Investing only a small amount and

- Investing in a risk free or conservative fashion

Question 2:

The important sources are

- Social Security

-Pensions

- Income from House/Property

- Income from some sort of employment during retirement

Question 3:

In a self directed, employer sponsored pension plan, both the employee and the employer put in equal amounts of money for retirement. The employee however can go over and above the limit for his contribution, but employer's contribution is fixed.

Question 4:

IRA is an acronym for Individual retirement account. It is sponsored by the government and taxes are deferred until you take distributions.

Question 5:

Four types of annuities are:

- Fixed annuities

- Variable annuities

- Annuity due

- deferred annuities