Personal Finance II

What is an IRA?

• An investment account a person may create to invest for any reason

• A retirement account that a person with a job may create for themselves

• An investment account that you can use to save and pay for school

• A retirement account that a business makes and employees may choose to invest in.

What is a 401K?

• An investment account a person may create to invest for any reason

• A retirement account that a person with a job may create for themselves

• An investment account that you can use to save and pay for school

• A retirement account that a business makes and employees may choose to invest in.

What is a 529?

• An investment account a person may create to invest for any reason

• A retirement account that a person with a job may create for themselves

• An investment account that you can use to save and pay for school

• A retirement account that a business makes and employees may choose to invest in.

What is a brokerage account?

• An investment account a person may create to invest for any reason

• A retirement account that a person with a job may create for themselves

• An investment account that you can use to save and pay for school

• A retirement account that a business makes and employees may choose to invest in.

What is a 401K employer match and an example of an employer match?
2 answers!

• If an employee chooses to invest a certain amount of money, the business will match that amount of money

• Where a company puts compensation like salary and bonuses

• An employ chooses to invest $1,000 in the 401K, so the business also puts in $1,000. The employee gets $2,000 in their 401K.

• An employee has been working for a company for 20 years, so the business automatically puts a $20,000 matching bonus into the employee's 401K

Which of these accounts will change if you switch jobs?

• Roth IRA

• 401K

• 529 Plan

• Brokerage

What is the difference between a regular IRA and Roth IRA?

• A regular IRA's contributions are not taxed until you withdraw them at retirement. A Roth IRA's contributions have already been taxed

• A Roth IRA's contributions are not taxed until you withdraw them at retirement. A regular IRA's contributions are taxed when you invest them in.

What role does inflation play in retirement planning?

• It decreases the value of saved money over time

• It increases the value of investments significantly

• It has no effect on retirement planning

• It reduces the cost of living

Who usually makes a 401k?

• A business creates this investment account for it's employees

• Anyone with a job (taxable income) can create this account for themselves

• Parents or students can make these to save for future education 

• Anyone of legal age can create this account and begin to invest

Who usually makes an IRA?

• A business creates this investment account for it's employees

• Anyone with a job (taxable income) can create this account for themselves

• Parents or students can make these to save for future education 

• Anyone of legal age can create this account and begin to invest