Investing and Retirement Scenarios

Front

Aria is considering where to put her money for future needs. Which of the following options would be most appropriate for her savings accounts and money-market accounts? Long-term investments like retirement, Earning a high rate of return, Emergency funds and short-term goals

Back

Emergency funds and short-term goals

Front

Emma is considering investing her savings. What is the benefit of her diversifying her investments?

Back

Reduced risk

Front

Avery is planning for her future and wants to ensure she has enough money for retirement. A reason she needs to save and invest is:

Back

Enable her money to make money

Front

Lily wants to invest in an asset that she can quickly convert into cash without losing its value. What quality should she look for in the asset?

Back

Liquidity

Front

What is the type of investment called where the investment grows either tax deferred or tax free?

Back

Tax-favored

Front

Emma is considering investing in single stocks and mutual funds. Do these investment options carry the same amount of risk?

Back

False

Front

Nora wants to ensure that some of her retirement savings will not be subject to income tax upon withdrawal. To achieve this, she should contribute to: 401(k), A Roth IRA, A traditional IRA

Back

A Roth IRA

Front

Avery is considering different retirement plans available at her nonprofit organization where she works as a teacher. Which retirement plan is typically found in nonprofit organizations such as churches, hospitals, and schools?

Back

403(b)

Front

Avery is considering investing in a company and wants to own a part of it. What type of securities should Avery purchase to achieve this?

Back

Stocks

Front

Anika wants to start investing but only has a small amount of money. Can she begin investing with this amount?

Back

True