Finances and Legal Considerations in Retirement
Expert-defined terms from the Professional Certificate in Retirement Transition Coaching course at London School of Planning and Management. Free to read, free to share, paired with a globally recognised certification pathway.
401(K) plan #
A type of retirement savings plan that allows employees to contribute a portion of their income to a tax-deferred investment account, often with matching contributions from their employer. Related terms: IRA, pension plan, retirement savings.
Actuarial tables #
Statistical tables used to determine the life expectancy of individuals, often used in insurance and pension planning to calculate benefits and premiums. Related terms: Mortality tables, life insurance, pension planning.
Annuity #
A type of insurance contract that provides a guaranteed income stream for a set period of time or for life, often used in retirement planning to provide a steady income. Related terms: Fixed annuity, variable annuity, income stream.
Asset allocation #
The process of dividing a portfolio among different asset classes, such as stocks, bonds, and cash, to manage risk and achieve long-term investment goals. Related terms: Diversification, portfolio management, investment strategy.
Beneficiary #
A person or entity designated to receive benefits from a trust, will, or insurance policy, often used in estate planning to distribute assets after death. Related terms: Estate planning, will, trust.
Budgeting #
The process of creating and managing a budget to track income and expenses, often used in retirement planning to ensure sufficient income and manage expenses. Related terms: Financial planning, expense management, income management.
Capital gains tax #
A type of tax levied on the profit made from the sale of an investment, such as stocks or real estate, often used in tax planning to minimize tax liability. Related terms: Tax planning, investment income, profit.
Catch #
up contribution: A type of contribution allowed for individuals over a certain age, often used in retirement savings plans to increase savings and reduce taxes. Related terms: Retirement savings, tax planning, contribution limits.
Certified Financial Planner (CFP) #
A professional designation awarded to individuals who have completed a certification program in financial planning, often used in financial planning to demonstrate expertise and credibility. Related terms: Financial planning, certification, professional designation.
Charitable giving #
The act of donating assets or income to a charity or non-profit organization, often used in estate planning to reduce taxes and support social causes. Related terms: Estate planning, tax planning, philanthropy.
Cognitive decline #
A decline in cognitive function, such as memory or decision-making ability, often used in aging and retirement planning to assess capacity for financial decision-making. Related terms: Aging, retirement planning, cognitive function.
Compound interest #
The process of earning interest on both the principal and any accrued interest, often used in investing and savings to grow wealth over time. Related terms: Interest, investing, savings.
Credit score #
A numerical rating used to evaluate an individual's creditworthiness, often used in lending and credit decisions to determine interest rates and terms. Related terms: Creditworthiness, lending, credit.
Debt management #
The process of managing and reducing debt, often used in financial planning to improve cash flow and reduce financial stress. Related terms: Financial planning, debt reduction, cash flow.
Diversification #
The process of spreading investments across different asset classes to manage risk and achieve long-term investment goals, often used in portfolio management to reduce volatility. Related terms: Asset allocation, portfolio management, risk management.
Elder law #
A type of law that focuses on the legal needs of older adults, often used in estate planning and long-term care planning to navigate complex legal issues. Related terms: Estate planning, long-term care, elder law.
Estate planning #
The process of planning for the distribution of assets after death, often used in wealth transfer to minimize taxes and ensure smooth transfer of assets. Related terms: Will, trust, probate.
Executor #
A person or entity designated to manage the estate of a deceased individual, often used in estate planning to carry out the wishes of the deceased. Related terms: Estate planning, will, probate.
Financial advisor #
A professional who provides advice and guidance on financial matters, often used in financial planning to create personalized financial plans. Related terms: Financial planning, investment advice, wealth management.
Financial literacy #
The ability to understand and manage personal finances, often used in financial education to improve financial decision-making and reduce financial stress. Related terms: Financial education, personal finance, financial planning.
Fixed income #
A type of investment that provides a fixed income stream, often used in retirement planning to provide a steady income. Related terms: Annuity, bond, dividend.
Guardianship #
A legal arrangement in which a person or entity is appointed to manage the affairs of another individual, often used in elder law to protect vulnerable adults. Related terms: Elder law, conservatorship, power of attorney.
Health savings account (HSA) #
A type of savings account that allows individuals to set aside tax-free funds for medical expenses, often used in healthcare planning to reduce out-of-pocket costs. Related terms: Healthcare planning, medical expenses, tax-free savings.
Inflation #
A sustained increase in the general price level of goods and services, often used in economic planning to adjust for changes in purchasing power. Related terms: Economic planning, purchasing power, inflation.
Inheritance tax #
A type of tax levied on the transfer of assets from one generation to the next, often used in estate planning to minimize taxes and ensure smooth transfer of assets. Related terms: Estate planning, wealth transfer, tax planning.
Insurance #
A type of contract that provides financial protection against risks or losses, often used in risk management to mitigate potential losses. Related terms: Risk management, insurance policy, premium.
Interest rate #
The rate at which interest is earned or paid on a loan or investment, often used in financial planning to determine borrowing costs and investment returns. Related terms: Financial planning, borrowing costs, investment returns.
Investment portfolio #
A collection of investments held by an individual or institution, often used in portfolio management to manage risk and achieve long-term investment goals. Related terms: Portfolio management, asset allocation, diversification.
IRA (Individual Retirement Account) #
A type of retirement savings plan that allows individuals to contribute tax-deductible funds to a retirement account, often used in retirement planning to save for retirement. Related terms: Retirement planning, tax-deductible, retirement savings.
Last will and testament #
A legal document that outlines an individual's wishes for the distribution of their assets after death, often used in estate planning to ensure smooth transfer of assets.
Legacy planning #
The process of planning for the transfer of assets and values to future generations, often used in estate planning to ensure a lasting legacy. Related terms: Estate planning, wealth transfer, legacy.
Long #
term care: A type of care that provides support and assistance with daily living activities, often used in healthcare planning to ensure access to necessary care. Related terms: Healthcare planning, long-term care insurance, caregiving.
Long #
term care insurance: A type of insurance that provides financial protection against the costs of long-term care, often used in risk management to mitigate potential losses. Related terms: Risk management, long-term care, insurance policy.
Medicaid #
A government-funded healthcare program that provides coverage for low-income individuals and families, often used in healthcare planning to ensure access to necessary care. Related terms: Healthcare planning, Medicaid planning, government benefits.
Medicare #
A government-funded healthcare program that provides coverage for older adults and individuals with disabilities, often used in healthcare planning to ensure access to necessary care. Related terms: Healthcare planning, Medicare planning, government benefits.
Net worth #
The total value of an individual's assets minus their liabilities, often used in financial planning to assess overall financial health. Related terms: Financial planning, asset management, debt management.
Pension plan #
A type of retirement plan that provides a guaranteed income stream to employees, often used in retirement planning to provide a steady income. Related terms: Retirement planning, pension, defined benefit plan.
Philanthropy #
The act of donating assets or income to a charity or non-profit organization, often used in estate planning to reduce taxes and support social causes. Related terms: Estate planning, tax planning, charitable giving.
Portfolio management #
The process of managing and maintaining a portfolio of investments, often used in investment management to achieve long-term investment goals. Related terms: Investment management, asset allocation, diversification.
Power of attorney #
A legal document that grants a person or entity the authority to act on behalf of another individual, often used in estate planning to manage affairs during incapacity. Related terms: Estate planning, incapacity, guardianship.
Probate #
The legal process of settling an individual's estate after death, often used in estate planning to ensure smooth transfer of assets. Related terms: Estate planning, will, executor.
Retirement savings #
The process of saving and investing for retirement, often used in retirement planning to ensure sufficient income and manage expenses. Related terms: Retirement planning, savings, investing.
Reverse mortgage #
A type of loan that allows homeowners to borrow against the equity in their home, often used in retirement planning to provide a source of income. Related terms: Retirement planning, loan, equity.
Risk management #
The process of identifying and mitigating potential risks or losses, often used in financial planning to protect assets and manage risk. Related terms: Financial planning, risk assessment, insurance.
Roth IRA #
A type of retirement savings plan that allows individuals to contribute after-tax funds to a retirement account, often used in retirement planning to save for retirement. Related terms: Retirement planning, tax-free growth, retirement savings.
Social Security #
A government-funded program that provides a guaranteed income stream to eligible individuals, often used in retirement planning to provide a steady income. Related terms: Retirement planning, Social Security benefits, government benefits.
Tax planning #
The process of managing and minimizing taxes, often used in financial planning to reduce tax liability and maximize after-tax income. Related terms: Financial planning, tax strategy, tax savings.
Trust #
A legal arrangement in which a person or entity holds assets for the benefit of another individual, often used in estate planning to manage and distribute assets. Related terms: Estate planning, trust administration, beneficiary.
Wealth management #
The process of managing and maintaining an individual's wealth, often used in financial planning to achieve long-term financial goals. Related terms: Financial planning, investment management, wealth transfer.
Will #
A legal document that outlines an individual's wishes for the distribution of their assets after death, often used in estate planning to ensure smooth transfer of assets. Related terms: Estate planning, probate, executor.
Women in retirement #
A demographic group that faces unique challenges and opportunities in retirement, often used in retirement planning to address specific needs and concerns. Related terms: Retirement planning, women's issues, financial planning.