Chapter 12 Investing and Retirement

What is The Fifth Foundation?

• Pay cash for college.

• Build wealth and give.

• Pay cash for your home

• Save for retirement.

A security that represents part ownership of a company is called a(n) ________.

• Annuity

• Bond

• Stock

• Certificate of Deposit

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

• Put into a separate savings account for your children to inherit someday

• Given to hundreds of local charities in your area

• Taxed based on each individual investor's annual salary

• Invested in a mix of stocks, bonds and money market accounts

Diversification reduces your ________ by using a mix of investment types in your portfolio.

• Income

• Risk

• Retirement funds

• Mutual funds

Tags

CCSS.HSS.MD.B.5

__________________ is the process of figuring out how much money you'll need in retirement and creating a plan to get there.

• Retirement accounting

• Outrageous generosity

• Retirement planning

• Investment banking

_________________ is the cure for ______________.

• Love; the income gaps in our society

• Selfishness; thinking of others first

• Investing wisely; estate planning

• Generosity; selfishness

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

• Short-term savings

• Checking accounts

• Compound growth

• Mortgage payments

Tags

CCSS.HSF.LE.A.1

CCSS.HSF.LE.A.2

CCSS.HSF.LE.A.3

Before you invest, you should make sure a mutual fund has done well for 5-10 years.

• True

• False

Tags

CCSS.HSS.MD.A.3

CCSS.HSS.MD.B.5

When riding the highs and lows of the stock market, remember . . .

• It will level out, so stick with it!

• You can't go wrong when investing money into stocks

• The S&P isn't a reliable source when it comes to navigating the growth and decline of stocks.

• It's unpredictable and risky. You should pull your money out and steer clear

Tags

CCSS.HSS.MD.B.5

Roth IRA, 401(k), 403(b), 457, and Simplified Employee Pension are all examples of ______________.

• Mutual Funds

• Retirement plans

• Investment Bankers

• Tax forms