Retirement Planning/ Investing

What is an IRA?

• The government organization that is in charge of managing retirement funds.
• a type of savings account that is designed to help you save for retirement and offers many tax advantages. 
• A fund that allows employees to save for college or other short term expenses
• A type of mortgage that is interest free

Retirement is what type of wealth building?

• Long-Term
• Short-Term

When should you start putting money away for retirement?

• As soon as possible
• Never
• When you are 50.
• Whenever you feel like it.  

Pool of money managed by an investment company/ professional and invested in multiple companies.

• Stock Market
• Mutual Fund
• Investment
• Money Market Account

This is the idea that you don't want to have "All your eggs in one basket."

• spreading risk
• Easter agenda
• safe investing
• diversification

Assume you are 22 years old, have up to $5,000 to invest annually toward retirement. However, your employer is not providing a match or a retirement plan. Select the best financial product for you.

• IRA
• 401K or Company matching plan
• Savings account
• Car

A retirement savings plan offered by a corporation to its employees; the employee contributes money from his/her gross pay, and the money grows tax deferred. Often times the company will match to certain percentage.

• IRA
• 401(k)
• Share
• Mutual Fund

Diversification lowers risk with investing.

• True
• False

What is the difference between a Roth IRA and a Traditional IRA?

• A Roth IRA is tax free, a Traditional IRA is tax deductible 
• A Traditional IRA is managed by the government, a Roth IRA is managed by a private company
• A Roth IRA is only available to military and public service employees
• There is no difference, just the name

What is one strategy that you can use to save money for retirement?  

• Put a little money into retirement each month.  
• Spend every dollar you have.  
• Do not put money into a retirement account.  
• None of the above three choices are correct.