Investing for Retirement Review

Investment strategies that allow you to pool your money together with other investors to purchase a collection of stocks, bonds, or other securities that might be difficult to recreate on your own.

• Mutual Fund
• Index Fund
• Exchange Traded Fund (ETF)
• Target Date Fund (TDF)

Which type of retirement account is an investment option for ANYONE entering the full-time workforce regardless of what career they choose?

• Traditional IRA
• Pension
• 401(k)
• Social security

A government program that pools contributions from current workers to then provide retirement support benefits to those who are eligible.

• Traditional IRA
• Pension
• 401(k)
• Social security

A retirement savings and investing plan that employers offer, gives employees a tax break on money they contribute.

• Traditional IRA
• Pension
• 401(k)
• Social security

This describes an investing strategy where you pay a fund manager to try to beat the market.

• Active Investing
• Passive Investing

The spreading of risk among many types of investments to reduce overall risk with a small reduction in return.

• diversification
• inflation
• investing

A rise in the general level of prices.

• diversification
• inflation
• investing

It is important to have 3 to 6 months worth of expense in liquid savings before you start to invest.

• True
• False

It is a good idea to have a diversified investment portfolio to reduce your overall risk.

• True
• False

Savings bonds are low risk investment but offer a high rate of return.

• True
• False