Retirement Investment Flashcard

Front

What is one of the most popular retirement investment accounts mentioned in the document?

Back

401(k)

Front

What other action do you need to take after opening an employer-provided 401(k) or an IRA for retirement?

Back

Invest in a diversified portfolio.

Front

Why might someone want to open an IRA as their retirement account?

Back

To have more investment options.

Front

What is one noticeable difference between an IRA and a 401(k)?

Back

401(k)s often include employer matching.

Front

Select the best definition of an IRA.

Back

An IRA is a tax-advantaged investing tool set up by individuals for retirement savings.

Front

Select the TRUE characteristic of a Roth IRA.

Back

The capital gains, interest, & growth of a Roth IRA can be withdrawn tax-free in retirement.

Front

True or False: You can only have ONE IRA account, so it is important to weigh the pros and cons of a Traditional vs a Roth IRA and choose wisely!

Back

False

Front

What is a 401k?

Back

A retirement account set up through your employer.

Front

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

Back

Roth IRA

Front

What account is a good idea if you are in a lower tax bracket than you will be at retirement? Hint: think about which one has taxes taken out now rather than later.

Back

Roth IRA