It’s not too early to think about benefits

At the ripe old age of, say, 22 or 23, it may seem a little macabre to think about things like… At the ripe old age of, say, 22 or 23, it may seem a little macabre to think about things like retirement funds and life insurance policies. But when you sign on to your first full-time job, odds are a few of these terms will pop up. Retirement terms 401 (k) n. ‘- the most common form of a defined contribution retirement plan. Your boss deducts money ‘mdash; you choose the amount ‘mdash; from your paycheck and places it in a savings account for you. Bonds n. ‘- You loan a company money, and it agrees to pay you back either on a specific date or at a future date of your choosing. You make money because the company pays you interest. De ‘middot; fined con ‘middot; tri ‘middot; bu ‘middot; tion retirement plan n. ‘- a retirement account that your employer sponsors. In ‘middot; di ‘middot; vid ‘middot; u ‘middot; al Retirement Account (IRA) n. ‘- a savings plan with some tax breaks. IRAs come in several different forms. A traditional IRA, for example, requires you to pay taxes only when you make withdrawals. One of the most common, the Roth IRA, allows your money to grow tax-free. Mutual fund n. ‘- occurs when a group, usually consisting of thousands of people, decides to invest in something together. Participants in a mutual fund may invest in large companies, stocks, bonds or real estate. They split the fund’s gains or losses. Pen ‘middot; sion n. ‘-‘ an account that your boss maintains so that he can give you a salary after you retire. Re ‘middot; tire ‘middot; ment n. ‘- a time in life when you don’t have to work, and no one can make you feel bad about it. Social Security n. ‘- A portion of your paycheck goes into Social Security. So, when you retire, you can, in theory, collect it. Stocks n. ‘- Those things that always seem to go up and down, sending Wall Street into a frenzy. Actually, though, they’re shares in a company. You can make money off of them if they become worth more than you paid for them, or if the company decides to issue dividends, which are payments given to shareholders that reflect the company’s earnings. Health insurance terms Health in ‘middot; sur ‘middot; ance n. ‘- that thing you rely on whenyou need some meds, visit a doctor or break a few limbs falling down the stairs. Health main ‘middot; te ‘middot; nance organization n. ‘- a form of health insurance in which members pay a fixed monthly fee. They must generally choose from a select group of doctors. Life in ‘middot; sur ‘middot; ance n. ‘- a policy you take out that ensures that your loved ones will have money to survive should you die. Long-term care in ‘middot; sur ‘middot; ance n. ‘- a policy that helps cover the costs of nursing-home care, at-home assistance, etc. Med ‘middot; ic ‘middot; aid n. ‘- a federal program for Americans age 65 and over. It’s separated into four parts. Part A covers hospital fees, Part B covers doctor visits, and Part D covers prescription medications. Part C is a hybrid of parts A and B, but it’s provided by private insurance companies. Pre ‘middot; ferred pro ‘middot; vid ‘middot; er or ‘middot; ga ‘middot; ni ‘middot; za ‘middot; tion n. ‘- a form of health insurance in which policyholders often pay deductibles when they receive treatment but are able to visit a wider variety of doctors. Definitions compiled from: www.CNNmoney.com www.HHS.gov www.medicareconsumerguide.com