Dave Ramsey Definitions Questions and Answers

Dave Ramsey Definitions Questions and Answers SEPP - Answer️️ -A retirement plan for self-employed people 457 - Answer️️ -A deferred compensation plan 401(k) - Answer️️ -Typical retirement plan found in most companies 403(b) - Answer️️ -Retirement plan found in non-profit groups (schools, hospitals) Educational Savings Account - Answer️️ -Save for college by first using this type of account UTMA - Answer️️ -Used after you max out the ESA Rollover - Answer️️ -Movement of funds from a tax-deferred retirement plan from one qualified plan or custodian to another. Custodian - Answer️️ -Manager of a child's UTMA account until he or she reaches age 21 Roth IRA - Answer️️ -A personal savings plan; contributions are not tax-deductible; earnings are tax-free Pension - Answer️️ -A sum of money paid regularly by a company to someone who has retired or has a disability Baby Step 1 - Answer️️ -$1000 in an emergency fund (or $500 if you make less than $20,000/year) Baby Step 2 - Answer️️ -Pay off all debt except the house utilizing the debt snowball Baby Step 3 - Answer️️ -Three to six months expenses in savings Baby Step 4 - Answer️️ -Invest 15% of your household income into Roth IRAs and pre-tax retirement plans Baby Step 5 - Answer️️ -Invest for college funding Baby Step 6 - Answer️️ -Pay off your home mortgage