Financial Planning for Generation X & Y Women
 
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Glossary of Financial Terms

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Retirement Plan
A plan for setting aside funds from current income in appropriate investments with the expectation that money will accumulate and grow so that period withdrawals may be made during retirement. The term can also refer to the individual investment options offered to employees by employers.
Roth IRA
A tax-preferred savings and investment account authorized by Internal Revenue Code section 408A. The contributions are made with after tax dollars. The earnings are not presently taxed or never taxed if certain rules of distribution are met.
Rule of 72
Used to determine how many years it will take your money to double. Divide 72 by the annual interest rate.