Do Now 71

Which of the below is an employer based retirement plan that both employees and employers contribute to?

• Traditional IRA

• Roth IRA

• 401K

• Pension

What type of employers usually offer pension plans for employees?

• Government agencies

• fast food restaurants

• small start ups

• private schools

Which of these accounts do you set up at a brokerage firm or other financial institution?

• 401K

• Pension

• Individual Retirement Account

Which of these accounts will NOT change if you switch jobs?

• IRA

• 401K

• Pension

Which of below accounts is your contribution directly taken out of your paycheck?

• 401K

• IRA

Which type of account will your employer often "match" your contributions?

• Traditional IRA

• 401K

• Roth IRA

• Pension

What does tax deferred mean?

• You pay taxes when you put the money into the account and when you withdraw it.

• You pay taxes now when you contribute to your account.

• You pay taxes at a later date when the money is withdrawn.

What type of account allows for instant diversification?

• mutual fund

• stock

• bond

Which has less risk?

• Bonds

• Stocks

Saul put $1500 in his savings account at 4.5% interest. 6 years later, how much interest has he earned?

• $45

• $405

• $40,500