Growing Wealth EVERFI Grow

The _________ you start saving, the __________ you will have to save each month to reach your retirement goals.

• earlier, less

• later, more

• sooner, more

• earlier, more

Which type of retirement account does your employer contribute to?

• 457

• Pension

• Traditional IRA

• Roth IRA

What's the difference between a traditional IRA and a Roth IRA?

• The age at which you can make withdrawals

• How much money you can contribute

• The type of bank that offers the accounts

• Whether the money you save is before or after tax

How can buying a house be considered "good debt"?

• It increases your net worth as it builds equity.

• It gives you a place to live for a long time.

• It is worth more than any other investment.

• It decreases in value over time.

Why is buying a car considered "bad debt"?

• It increases your net worth as it builds equity.

• It gives you transportation to and from your job.

• It is worth more than any other investment.

• It decreases in value over time.

If you are looking to use good debt to build equity, which of the following would you purchase?

• A boat

• A car

• A house

• An RV

Which of the following invests your after-tax dollars?

• 401(k)

• 403(b)

• Traditional IRA

• Roth IRA

What is the difference between 401(k) and 403(b) accounts?

• How much money you can save

• Who can open each account

• Where you can choose to invest

• When your money is invested

How are IRAs different from 401(k), 403(b), and pension accounts?

• IRAs are not employee-sponsored.

• 401(k), 403(b), and pensions are not employee-sponsored.

• IRAs use pre-tax dollars only.

• 401(k), 403(b), and pensions have more limits on savings.

What is not considered an advantage to owning a home?

• Building equity

• Appreciation

• Maintenance costs

• None of the above