Investing and Retirement Information Review

What does ROI stand for in the context of investing?

• Return on Investment

• Risk of Inflation

• Revenue of Insurance

• Rate of Interest

Which of the following is NOT a common type of investment?

• Stocks

• Real Estate

• Bonds

• Credit Cards

What is diversification in investment?

• Investing in a single asset

• Investing without research

• Spreading investment across various assets

• A type of cryptocurrency

What is the stock market?

• A physical market where goods are exchanged

• A market only for government bonds

• A place for buying and selling shares of public companies

• A type of supermarket

What does the term "bull market" refer to in investing?

• When the market is doing well

• When the market is in a downturn

• A term for physical marketplaces

• Another name for a bear market

What is the difference between taxable (T), tax-deferred (TD), and tax-free (TF)?

• T=taxed yearly, TD=never taxed, TF=taxed at purchase

• T=not taxed, TD=taxed at withdrawal, TF=not subject to tax

• T=taxed at purchase, TD=taxed yearly, TF=not subject to tax

• T=taxed at purchase, TD=not taxed until withdrawal, TF=not subject to tax

Name the type of investment - when is the money taxed when invested?

• Roth IRA

• Traditional IRA

• 401K

• 403b

I only need to invest for retirement purposes.

• True

• False

Which investment is considered post-tax, meaning you pay tax only when withdrawn?

• Traditional IRA

• 401K

• Stocks

• Mutual Funds

What does the word 'invest' mean?

• Spending money impulsively over a long time

• Saving money in platforms to increase wealth

• Borrowing money from others and repaying with interest

• Donating money to charity