RAMSEY CH 12 sec 1-3

According to the text, what is the main benefit of starting to plan for retirement early?

• It is a requirement for old age.

• It allows you to make your retirement what you want it to be.

• It ensures you will travel more after retirement.

• It is only necessary if you are already wealthy.

What is the Fifth Foundation mentioned in the text?

• Invest in real estate.

• Build wealth and give.

• Save money for emergencies.

• Plan for early retirement.

What does investing basically involve, as described in the text?

• Spending money on luxury items.

• Saving money in a way that earns money through compound growth.

• Keeping money in a checking account.

• Buying and selling stocks daily.

What is the goal when you invest?

• To decrease the value of your investments

• To earn a positive return on investment (ROI)

• To ensure no risk is involved

• To have immediate access to your money

What does an investment's risk-return ratio help you understand?

• The amount of time it takes to double your investment

• How to eliminate risk entirely

• How risky the investment is compared to the return you can expect

• The exact amount of return you will receive

According to the text, what is generally true about liquid assets?

• They offer a higher return because they are more risky

• They can easily be sold and turned into cash

• They are not very important for building wealth

• They grow very much over time

Why did Jack end up with a ton of money for retirement?

• Because he invested in high-risk assets only

• Because he waited until the last minute to invest

• Because he had money, time, and investments that provided a solid return

• Because he kept all his money in liquid assets

What is a characteristic of cash in the bank according to the text?

• It is not very liquid

• It grows very much over time

• It is very liquid but not growing very much

• It is the best investment for long-term growth

What percentage of non-retired Americans have no money saved for retirement according to the text?

• 25%

• 49%

• 35%

• 60%

According to the text, what is the recommended percentage of your income that should be invested for retirement once you are debt-free, excluding your mortgage, and have saved for six months of expenses?

• 10%

• 15%

• 20%

• 5%