Retirement Savings for Teenagers Quiz

What is the best retirement saving vehicle for a teenager according to Anjali Jariwala?

• Traditional IRA

• Roth IRA

• 401(k)

• Savings Account

Why is it beneficial to use a Roth IRA early in your career?

• You can contribute more money

• Your tax bracket is higher

• Your tax bracket is lower

• You get immediate tax deductions

What is required for a young person to contribute to a Roth IRA?

• A college degree

• Earned income

• Parental consent

• A savings account

What type of account can a child under 18 open with an adult's help?

• Roth IRA

• Custodial account

• Traditional IRA

• 401(k)

What is a recommended investment for teens without earned income?

• Real estate

• Index funds

• Cryptocurrency

• Bonds

What is a benefit of investing in index funds for young people?

• High risk

• Immediate returns

• Diversification

• Tax-free growth

What can a Roth IRA allow you to do without a tax penalty?

• Withdraw contributions at any time

• Withdraw earnings at any time

• Withdraw after age 65

• Withdraw only for education

What might take priority over saving for retirement for teenagers?

• Buying a house

• Concert tickets and college tuition

• Starting a business

• Traveling

What does Jariwala recommend young people do with their money?

• Spend it all

• Save as much as they can

• Invest in high-risk stocks

• Keep it in cash

What is a potential challenge for teenagers saving for retirement?

• Lack of investment options

• Uncertain future expenses

• High tax rates

• Limited savings accounts