Personal Financial Planning Flashcard Review

Front

What is the first step in personal financial planning?

Back

Setting financial goals

Front

Which of the following is considered a fixed expense? Clothing, Groceries, Rent, Entertainment

Back

Rent

Front

A 401(k) plan is a ________.

Back

benefit that helps workers invest for retirement

Front

How can you invest for retirement if your employer does not offer a 401(k) plan?

Back

Open an Individual Retirement Account or IRA

Front

What is a living will?

Back

A plan to care for someone who is young or incapacitated and cannot care for themselves.

Front

What are two significant advantages of a 401(k) over an IRA?

Back

You can get free money through an employer match and you can contribute more per year.

Front

Who can help with estate planning?

Back

Attorneys, Financial institutions, CPAs & CFPs.

Front

What is a statement of financial position?

Back

A financial statement that describes an individual or family’s financial condition on a specified date by showing assets, liabilities, and net worth

Front

Is it a bad idea to get a credit card?

Back

False

Front

What is the life expectancy of Americans?

Back

79.3 years