Investing and Retirement Planning

Front

It is ok to invest in something you don't understand as long as a financial professional is handling the investment.

Back

False

Front

Is it financially smart to borrow $5,000 at a 4% interest rate if you can invest that money and earn 10% interest? You will end up making 6%.

Back

False

Front

"Don't put all your eggs in one basket" is known as?

Back

Diversification

Front

When it comes to investing, the general rule of thumb is, "The higher the risk, the higher the potential return."

Back

True

Front

Real estate is not a wise investment because it takes too long to get your cash when you need it.

Back

False

Front

How quickly you can turn an asset into cash is known as?

Back

Liquidity

Front

Dave suggests that your emergency fund be put in which type of account?

Back

Money Market account

Front

Which is a type of savings account that locks your money away for a specified period of time?

Back

CD

Front

Which type of investment is a loan that you make to a company and earn interest in return?

Back

Bonds

Front

Single Stock investing carries a low (safe) degree of risk.

Back

False