Investing and Retirement

Front

If you leave a job and have money saved in your employer's retirement plan, always roll that money into an IRA using direct rollover, which allows you to avoid taxes and penalties.

Back

True

Front

A mutual fund portfolio that is properly diversified will have all investment dollars located in just one of four different classes of financial assets.

Back

False

Front

Savings accounts and money-market accounts are most appropriate for:

Back

Emergency funds and short-term goals

Front

You should start investing as soon as you have your college education funded.

Back

True

Front

The benefit of diversification in investments is:

Back

Reduced risk

Front

Saving and investing have nothing to do with the amount of money you make.

Back

True

Front

A reason people need to save and invest is:

Back

Enable their money to make money

Front

Quality of an asset that permits it to be converted quickly into cash without loss of value; availability of money

Back

Liquidity

Front

Money that is invested, either tax deferred or tax free, within a retirement plan

Back

Tax-favored

Front

Single stocks and mutual funds carry the same amount of risk.

Back

False