Chapter 12 Investing and Retirement

What is The Fith Foundation?

• pay cash for college
• save for retirement
• build wealth and give
• pay cash for your home

_____ is the cure for _____.

• Selfishness; thinking of others first
• Generosity; selfishness
• Love; the income gaps in our society
• Investing wisely; estate planning

A security that represents part ownership of a company is called a(n) _____.

• stock
• bond
• certificate of deposit
• annuity

_____ is hte process of figuring out how much money you'll need in retirement and creating a plan to get there.

• Retirement accounting
• Retirement planning
• Outrageous generosity
• Investment banking

Diversification reduces your _____ by using a mix of investment types in your portfolio.

• mutual funds
• risk
• retirement funds
• income

When you invest in a mutal fund, you are contributing to a pool of money that will be...

• given to hundreds of local charities in your area
• invested in a mix of stocks, bonds and money market accounts
• taxed based on each individual investor's annual salary
• put into a separate savings account for your children to inherit someday

Investing your money earns you more money becuase of...

• checking accounts
• mortgag payments
• compound growth
• short-term savings

Live like no one else now, so later you can live and _____ like no one else.

• be selfish
• work hard
• hoard your resources
• give

Social Security benefits are meant to _____ your income.

• replace 40% of
• tax 100% of
• decrease
• fully replace

Before youj invest, you should make sure a mutual fund has done well for 5-10 years.

• true
• false