Retirement practice

Front

Your money remains tax-deferred in this account until you withdraw (taxed as income when you take it out)

Back

Traditional IRA

Front

Why is it important to start investing as soon as possible?

Back

You have more time for your money to compound

Front

True or False: Investing in a diversified portfolio of stocks guarantees you will not lose money.

Back

False

Front

Which of the following statements best explains the purpose behind diversifying your portfolio: All's well that ends well, Don't put all your eggs in one basket, Everything in moderation., Just do it.

Back

Don't put all your eggs in one basket

Front

Which of the below is an employer based retirement plan that both employees and employers contribute to?
Options: Traditional IRA, Roth IRA, 401K, Pension

Back

401K

Front

Which of these accounts do you set up on your own at a brokerage firm or other financial institution? 401K, Pension, Individual Retirement Account

Back

Individual Retirement Account

Front

What is the difference between a Traditional and Roth IRA?

Back

A traditional IRA's contributions are not taxed until you withdraw them at retirement. A Roth IRA's contributions are taxed when you invest.

Front

Which of these accounts will NOT change if you switch jobs? IRA, 401K, Pension

Back

IRA

Front

Which of below accounts is your contribution directly taken out of your paycheck? 401K, IRA

Back

401K

Front

What does tax deferred mean?

Back

You pay taxes at a later date when the money is withdrawn.