Investing and Retirement

A young investor willing to take moderate risk for above-average growth would be most interested in:

• Single stocks

• Bonds

• Mutual funds

• Real Estate

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

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

• True

• False

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

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

• True

• False

Which statement is false 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

A savings plan operated by a state or educational institution designed to help families set aside funds for future college cost

• 529 Plan

• Rule of 72

• Guaranteed Investment Contract

The benefit of diversification in your investments is:

• Reduced Risk

• Reduced taxes

• Increased Risk

• Increased Return

The government agency responsible for regulating the stock market

• Federal Reserve

• Securities exchange commission

• Federal Bureau of Investigation

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

• True

• False