Investing and Retirement Planning

It is ok to invest in something you don't understand as long as a financial professional is handling the investment.

• True

• False

It is financially smart to borrow $5,000 at a 4% interest rate if you can invest that money and earn 10% interest. You will end up making 6%.

• True

• False

"Don't put all your eggs in one basket" is known as?

• Risk management

• Liquidity

• Diversification

• Smart shopping

When it comes to investing, the general rule of thumb is, "The higher the risk, the higher the potential return."

• True

• False

Real estate is not a wise investment because it takes too long to get your cash when you need it.

• True

• False

How quickly you can turn an asset into cash is known as?

• Liquidity

• Diversification

• Cashability

• Spendability

Dave suggests that your emergency fund be put in which type of account?

• Regular savings account

• CD

• Money Market account

• Mutual Funds

Which is a type of savings account that locks your money away for a specified period of time?

• Money Market

• Mutual Fund

• Stock Market

• CD

Which type of investment is a loan that you make to a company and earn interest in return?

• Stocks

• Bonds

• Mutual Funds

• Money Market

Single Stock investing carries a low (safe) degree of risk.

• True

• False