Dave Ramsey Retirement and Investing Test

Which of the following is a good investment option?

• Gold

• Viaticals

• Mutual Funds

• Futures

Which statement is true about liquidity?

• The more liquid an investment, the more return

• The less liquid the investment, the less return

• The more liquid an investment, the less return

• Both A and B

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

• Long-term investments like retirement

• Earning a high rate of return

• Emergency funds and short-term goals

• Savings accounts and money-market accounts should be avoided since they carry high risk

A retirement plan found in non-profit organizations such as churches, hospitals and schools.

• GIC

• 457

• 401(k)

• 403(b)

Employee benefits packages:

• Should not be a consideration when looking for a job

• Never include retirement plans

• Are the same regardless of the company you work for

• Are non-wage compensations provided to employees in addition to their normal wages or salaries

Money markets are great for your emergency fund due to their liquidity and stability.

• True

• False

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

• True

• False

Good investment portfolios are extremely complex.

• True

• False

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

• True

• False

If you get into financial trouble, borrowing against your retirement plan is a good option.

• True

• False