PF Midterm 1-49

The primary benefit of a Traditional IRA is that retirement withdrawals are tax-free.

• True

• False

Your collection of assets is called your investment strategy.

• True

• False

The odds of winning a large lottery jackpot like Powerball are:

• 1 in 100,000

• 1 in 292 million

• 1 in 10 million

• 1 in 100 million

Which of the following would be considered a discretionary expense?

• Your mortgage payment

• Your student loan payment

• A new video game console

• Your utility bills

What does diversification aim to reduce?

• Risk

• Taxes

• Returns

• A financial manager

Which is the safest retirement investment?

• Stocks

• Treasury bonds

• Real estate

• Cryptocurrency

Writing down your goals increases your likelihood of success.

• True

• False

What is a zero-based budget?

• A budget with no savings

• A traditional budget

• A budget that ignores income

• A budget where every dollar is allocated to a purpose

Investing in multiple sectors is an example of diversification.

• True

• False

Which of the following is NOT considered a Baby Step in Dave Ramsey's financial plan?

• Saving for retirement

• Optional emergency fund

• Paying off debt