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Module 7 — Easy Steps to Retirement Planning · Class 2 of 4

Retirement Accounts and Contributions

Estimated time: 75–90 minutes · Guided, self-paced class

LESSON OVERVIEW

Build knowledge you can use.

Retirement planning estimates future spending, builds tax-aware resources, and converts savings into durable income. In this class, the focus is retirement accounts and contributions within easy steps to retirement planning, so you can turn the broader idea into a decision you can explain, measure, and repeat.

By the end of this class, you can:

  • Explain retirement accounts and contributions in plain language.
  • Apply the core principles to a realistic household or business decision.
  • Identify the numbers, documents, and risks that matter before acting.
  • Complete a practical next-step plan and review it with a qualified professional when needed.

CLASS ROADMAP

Follow the class step by step.

1
15 min

Understand

Learn the purpose, vocabulary, and real-world impact of retirement accounts and contributions.

2
15 min

Prepare

Gather the facts, documents, and numbers needed to work accurately.

3
25 min

Build

Apply the framework to the worked example and then to your own situation.

4
15 min

Review

Test assumptions, identify risks, and correct unsupported conclusions.

5
10 min

Act

Choose the next action, due date, success measure, and professional questions.

CORE CONCEPTS

01

Begin with lifestyle

Estimate future expenses and distinguish essential from flexible spending.

02

Use available accounts

Understand employer plans, IRAs, contribution limits, matching, taxes, and withdrawal rules.

03

Plan for longevity

Inflation, healthcare, market returns, and lifespan affect how long resources must last.

GUIDED INSTRUCTION

Learn it. Build it. Verify it.

1. Begin with lifestyle

Estimate future expenses and distinguish essential from flexible spending. This principle becomes useful when it is connected to current facts, written assumptions, and a measurable goal. Do not stop at understanding the definition: document how it affects your cash flow, risk, ownership, or next financial decision.

Do this in your business

  1. Describe the desired retirement lifestyle.
  2. Write the facts and source documents that support your conclusion about begin with lifestyle.
  3. Compare at least two possible choices and record the benefit, cost, risk, timing, and tradeoff of each.
  4. Choose a review date and identify the person or professional who should verify the decision when appropriate.
Proof of workA completed worksheet showing the facts, assumptions, comparison, decision, and review date for begin with lifestyle.

2. Use available accounts

Understand employer plans, IRAs, contribution limits, matching, taxes, and withdrawal rules. This principle becomes useful when it is connected to current facts, written assumptions, and a measurable goal. Do not stop at understanding the definition: document how it affects your cash flow, risk, ownership, or next financial decision.

Do this in your business

  1. Estimate annual retirement spending.
  2. Write the facts and source documents that support your conclusion about use available accounts.
  3. Compare at least two possible choices and record the benefit, cost, risk, timing, and tradeoff of each.
  4. Choose a review date and identify the person or professional who should verify the decision when appropriate.
Proof of workA completed worksheet showing the facts, assumptions, comparison, decision, and review date for use available accounts.

3. Plan for longevity

Inflation, healthcare, market returns, and lifespan affect how long resources must last. This principle becomes useful when it is connected to current facts, written assumptions, and a measurable goal. Do not stop at understanding the definition: document how it affects your cash flow, risk, ownership, or next financial decision.

Do this in your business

  1. Inventory accounts and contribution rates.
  2. Write the facts and source documents that support your conclusion about plan for longevity.
  3. Compare at least two possible choices and record the benefit, cost, risk, timing, and tradeoff of each.
  4. Choose a review date and identify the person or professional who should verify the decision when appropriate.
Proof of workA completed worksheet showing the facts, assumptions, comparison, decision, and review date for plan for longevity.

PREPARE

Learning materials and records to prepare

  • The most recent statements, agreements, reports, or account records connected to retirement accounts and contributions
  • A calculator or spreadsheet for testing assumptions and comparing choices
  • A written list of goals, deadlines, constraints, and unanswered questions
  • The WPI lesson workbook, action plan, and professional-review checklist

COMMON MISTAKES

What to watch for

Acting before defining the goal

Write the desired outcome, deadline, amount, and reason before comparing strategies.

Using estimates as verified facts

Label every estimate, record its source, and replace it when reliable information becomes available.

Looking at benefits without cost or risk

Compare cash impact, fees, taxes, liquidity, uncertainty, and opportunity cost together.

Learning without implementation

Finish with one action, one owner, one due date, and one measure of successful completion.

Key vocabulary

Employer matchAn employer contribution tied to an employee's contribution.
Tax-deferredTaxes are generally postponed until withdrawal.
RothEligible contributions are after-tax and qualified withdrawals are tax-free.
InflationThe rise in prices over time.

READY TO ADVANCE?

Class completion standard

Educational use

This lesson teaches general financial principles. Tax, legal, insurance, credit, and investment decisions may require a licensed professional who understands your situation and jurisdiction.