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13 Cards in this Set
- Front
- Back
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Retirement annuity
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Stream of cash flows available for consumption during one's retirement years.
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Real consumption
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Nominal consumption divided by the price deflator.
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Flat tax
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A tax code that taxes all income above some exemption at a fixed rate.
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Tax shelters
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Means by which to postpone payment of tax liabilities for as long as possible.
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Progressive tax
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Taxes are an increasing fraction of income.
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Traditional IRA
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Contributions to the account and investment earnings are tax sheltered until retirement.
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Roth IRA
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Contributions are not tax sheltered, but investment earnings are tax free.
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401k plans
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Defined contribution pension plans wherein the employer matches the employee's contribution up to a set percentage.
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Social Security
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Federally mandated pension plan established to provide minimum retirement benefits to all workers.
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Longevitiy
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Remaining life expectancy.
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Life annuity
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An annuity that pays you income until you die.
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Adverse selection
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The tendency for any proposed deal to attract the type of party who would make the deal a losing proposition to the offering party.
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Moral hazard
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The phenomeon whereby a party to a contract has an incentive to change behavior in a way that makes the contract less attractive to the other party.
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