Investing for Retirement

Which of the following is not considered a retirement plan?

• Tradititonal IRA

• Roth IRA

• 401K

• HMO

The relationship between risk and return can be stated as

• Higher risk indicates the higher possible return

• Higher risk always indicates a lower return

• There is no relationship between risk and return

• There are no risks in investing

To diversify your investments means to ....

• Limits investment choice

• Increases risk by investing in one company.

• Reduces risk by putting your money into several different investments.

Where should you store your emergency fund?

• IRA

• Savngs Account or a mutual fund

• In your pocket

Which would be considered the highest risk investment type?

• Individual Company Stock

• Mutual Fund

• Bond

• Money Market Account

Which of the following is generally true about 401(k) and 403(b) retirement plans?

• It may be offered through your employer as a form of employee benefits.

• All companies offer them

• All the money that is contributed into them comes from your employer

Mutual funds are less risky and can outperform the stock market because . . .

• They are not diversified

• They guarantee a high rate of return

• They are liquid

• They are diversified because they invest in 90-200 different companies at once

An investment that is considered a loan and has to be paid on a specific date known as a maturity date.

• Stock

• Commodity

• Bond

• IRA

Investing your money can earns you more money because of . . .

• checking accounts

• mortgage payments

• compound interest

• short-term savings

Never _____ something you don't _____.

• buy; invest in

• invest in; understand

• diversify; enjoy