Dave Ramsey Chapter 3
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means that he government allows you to invest money before taxes are taken out
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Pre tax
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What is a good way to save for college?
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ESA
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plans designed for non profit organizations such as hospitals and schools
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403b
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Is building wealth like a marathon?
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true
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a retirement plan for self employed people
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SEPP
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a deferred compensation plan
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457
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typical retirement plan for most companies
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401k
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used after you max out the ESA
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UTMA
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the tax treatment on virtually any type of investment
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IRA
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What is the difference between a roth ira and regular ira?
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roth ira grows tax free
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When can you not make a tax free withdrawal from your roth ira?
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career change and temporary drop of income
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What is the best option for retirement plan when you leave a company?
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direct transfer
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Is a roth ira taxed before or after?
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before
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What does baby step 5 say about saving for your childrens college?
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use tax favored plans
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What are the 3 nevers to college savings?
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pre paid tuition, insurance, savings bonds
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Why should you not rely on social security?
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it won't always be there, it isn't enough
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How does an IRA work?
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available to anyone who has a job or has a spouse with a job. It is taxed right when you invest it so it grows tax free.
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What is the max contribution of a roth ira?
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$5000
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What is the max contribution of a 401k?
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$15000
