Investments - Savings and Government Bonds

Which of the below alternatives are considered investments? You can choose more than one.

• Cattle and land.

• Motorcycles and cars.

• Savings Account.

• Stocks.

Which of the following statements is TRUE?

• Stocks are examples of fixed income investments.

• All fixed income investments pay IOF at maturity, regardless of the investment term.

• As investment can be considered "fixed income" even if the numerical value of the return rate is not previously established.

• FGC is a government entity that protects investors from frauds like pyramid scemes.

If you invest R$ 20,000 in Tesouro Direto, the Income Tax you will be obliged to pay will reduce the future value of your total cash in 15 to 22.5%, depending on the investment term.

• The statement is TRUE.

• The statement is FALSE, as Income Tax only applies to your financial income, not to the amount you invested.

• The statement is false, as Income Tax is always 15% for investments through Tesouro Direto.

Regarding Savings Accounts (Poupança), which of the following statements is FALSE?

• Savings Accounts are considered safe investments.

• Income from investing in Savings Accounts are tax free.

• The resources in Savings Accounts are loans to the Government, operated through banks.

• Savings Accounts are a good example of high risk investments.

What investment would you recommend to a friend who is saving for his retirement: Savings Account, Fixed Rate Government Bonds or Floating Rate Government Bonds? Please explain your answer.