| A | B |
|---|
| Roth IRA | Individual Retirement Account funded after income taxes- Money taken out in retirement is tax free |
| IRA (Traditional) | Individual Retirement Account- lowers Taxable income- Money is taxed when taken out in retirement |
| 401k | Company Sponsored Retirement Account |
| Pension | Defined Benefit Plan for Retirement offered by Employer |
| 403 (b) | Retirement Account for Non-Profits |
| Vesting | Waiting period before you can claim Employer Retirement Contributions |
| Net Worth | A person's assets minus their liabilities |
| Asset | Something one owns that is of financial value |
| Liability | A debt that one holds like credit card or auto loan |
| Defined Contribution | Retirement plan like IRA or 401k where the money put in is defined. |
| Matching | The game! :-) Actually, what your employer does to contribute to your retirement account. |
| Diversification | The reduction of risk by spreading your portfolio over different asset classes like stocks and bods |
