What is a characteristic of a Roth IRA?

Taxes are paid when money is deposited

Taxes are paid when money is withdrawn

Taxes are deferred until retirement

What is the benefit of an IRA regarding taxes?

You are expected to pay less taxes as a retiree than when you are working.

You are expected to pay more taxes as a retiree.

You pay taxes on the money as if it were income when working.

There is no tax benefit to an IRA.

What is the tax treatment of withdrawals from a Roth IRA after reaching retirement age?

Withdrawals are tax-deductible.

Withdrawals are subject to a 10% penalty.

Withdrawals are taxed as regular income.

401(k) retirement accounts are offered to employees of which type of companies?

Public or private for-profit companies

All companies regardless of profit status

403(b) plans are offered to employees of which types of organizations?

Tax-exempt or non-profit organizations

What are investments?

Assets purchased with the goal of providing additional income from the asset itself but with the risk of loss

What is typically used for emergencies, is more liquid, and has limited risk?

Mutual Funds, Stocks, and Bonds

What is the definition of 'Return' in the context of investments?

Profit or income generated by saving and investing

The amount of money lost in an investment

The possibility that an investment will fail to pay the expected return

The amount of money borrowed to make an investment

What is 'Investment Risk'?

The possibility that an investment will fail to pay the expected return

The guaranteed profit from an investment

The interest rate applied to an investment

The initial cost of making an investment

What is the relationship between risk and potential return in investments?

The higher the potential return, the higher the risk

The higher the potential return, the lower the risk

The lower the potential return, the risk remains the same

There is no relationship between risk and potential return

What is the Rule of 72 used to estimate?