Investment and Financial Planning Quiz

What is The Fifth Foundation?

• Pay cash for your home

• Build wealth and give

• Save for retirement

• Pay cash for college

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

• Stock

• Bond

• Mutual Fund

• Certificate of Deposit

When you invest in a mutual 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

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

• Income

• Retirement funds

• Risk

• Mutual funds

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

• Investment banking

• Outrageous generosity

• Retirement planning

• Retirement accounting

__________ is the cure for __________.

• Investing wisely; estate planning

• Love; the income gaps in our society

• Generosity; selfishness

• Selfishness; thinking of others first

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

• Checking accounts

• Mortgage payments

• Compound growth

• Short-term savings

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

• True

• False

When riding the highs and lows of the stock market, remember . . .

• You can't go wrong when investing money into stocks.

• The S&P isn't a reliable source when it comes to navigating the growth and decline of stocks.

• It's unpredictable and risky. You should pull your money out and steer clear.

• It will level out, so stick with it!

Roth IRA, 401(k), 403(b), 457, and Simplified Employee Pension are all examples of __________.

• Tax forms

• Mutual funds

• Retirement plans

• Investment bankers