Dave Ramsey Chapter 11

Front

What is the total contribution amount at the end of 12 months if Jason contributes $200 per month to his 401(k) plan and the company matches 100% of his contribution up to 5% of his gross income of $4,000?

Back

$5,000

Front

What definition best explains an IRA?

Back

A type of investment at a bank or investment firm that has good tax benefits

Front

The primary difference between the Roth IRA and a traditional IRA is:

Back

The Roth IRA grows tax free; the traditional IRA doesn’t.

Front

Under which condition are you not able to make a tax-free withdrawal from your Roth IRA? Options: Over 59 and a half years old, First-time home purchase up to $10,000, Death or disability

Back

Career change and temporary drop of income

Front

What is the best option for your retirement plan when you leave a company? Options: Have the money sent to you and deposit it into a new IRA within 60 days., Do a direct transfer into an IRA., Leave the plan where it is so it can continue to accrue interest., Cash out the plan and invest in good mutual funds.

Back

Do a direct transfer into an IRA.

Front

If you have $3,000 invested in a Roth IRA, what is true about your contribution?

Back

You have already paid taxes on the money, so it will grow tax free.

Front

Which of the following is a good way to save for college? ESA, Life insurance, Pre-paid college tuition, Savings bonds

Back

ESA

Front

Using the Rule of 72, how long will it take your money to double at 12% interest?

Back

7.2 years

Front

When seeking a financial counselor to help you with your investments, always go with:

Back

A financial counselor with the heart of a teacher who explains everything to you

Front

What does Baby Step 5 say about saving for your children’s college?

Back

Use tax-favored plans