Investing- Dave Ramsey

What is the 5th foundation?

• build wealth and give

• pay cash for a car

• pay cash for college

• save for retirement

A security that represents part ownership of a company

• bond

• stock

• CD

• Annuity

When you are investing in a mutual fund, you are contributing to a pool of money that will be..

• given to hundreds of charities in your area

• invested in a mix of stocks and bonds

• taxed based on each individual investor's annual salary

• put into a separate savings account for your children to inherit

diversification reduces your ________

• income

• retirement funds

• risk

• mutual funds

_______ is the process of figuring out how much money you will need in retirement and creating a plan to get there

• investment banking

• outrageous generosity

• retirement planning

• retirement accounting

investing your money earns you more money because of

• checking accounts

• mortgage payments

• compound growth

• short-term savings

Roth IRA, 401(k), 403(b), 457 and SEP are all examples of

• tax forms

• mutual funds

• retirement plans

• investment bankers

CD and money market accounts are both examples of investments with _______ risk and ______ returns

• low; low

• low; high

• high; high

• high; low

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 fully liquid

• they invest in several companies at once

the three components of compound growth are money, time and _______

• a large paycheck

• retirement

• investments

• rate of return