Retirement Plans and Employment Benefits

Front

Retirement is what type of wealth building? Options: Long-Term, Short-Term

Back

Long-Term

Front

When should you start putting money away for retirement? Options: As soon as possible, Never, When you are 50., Whenever you feel like it.

Back

As soon as possible

Front

Assume you are 22 years old, have up to $5,000 to invest annually toward retirement. However, your employer is not providing a match or a retirement plan. Select the best financial product for you: Roth IRA, 401K or Company matching plan, Savings account, Car.

Back

Roth IRA

Front

A retirement savings plan offered by a corporation to its employees; the employee contributes money from his/her gross pay, and the money grows tax deferred. The company will often match to a certain percentage.

Back

401(k)

Front

Most IRAs are invested in

Back

mutual funds.

Front

Which of the following is a characteristic of a Roth IRA? Money invested into a Roth is “after-tax” dollars, Money is deposited into a Roth by your employer., Money invested into a Roth is “before-tax” dollars., Once money is deposited into a Roth IRA, it cannot be taken out until retirement.

Back

Money invested into a Roth is “after-tax” dollars

Front

A type of IRA; contributions are NOT tax deductible, but earnings and withdrawals are tax free

Back

Roth IRA

Front

In most situations it is okay to take money out of your retirement account to buy a car or something that you really want.

Back

False

Front

Bob starts saving $500 a month for retirement at age 25. Ron starts saving $500 a month for retirement at age 40. Who is most likely going to be able to retire earlier?

Back

Bob

Front

If your company has a retirement plan, you should sign up as soon as possible so your investment will start growing.

Back

you should sign up as soon as possible so your investment will start growing.