Financial Moves for 2025

Why is it important to review your liquid assets by the end of 2024?

• To close all your bank accounts.

• To spend all your savings on luxury items.

• To invest all your money in stocks.

• To ensure you have enough cash for emergencies and future expenses.

What is a 401K match?

• An employer's contribution to your retirement savings, matching your own contributions up to a certain limit.

• A type of savings account with high interest.

• A loan you take from your employer.

• A government grant for retirement.

What should you do if your employer does not offer a 401K match?

• Stop saving for retirement.

• Spend your savings on a new car.

• Maximize contributions to other tax-free retirement accounts like a Roth IRA.

• Invest all your money in real estate.

What is considered 'bad debt'?

• Debt with low interest rates that can provide returns over time.

• Debt with high interest rates and no value-increasing asset backing it.

• Debt used for educational purposes.

• Debt used for purchasing a home.

Why is it beneficial to negotiate your bills at the end of the year?

• To cancel all your services.

• To potentially lower your rates and save money over time.

• To increase your monthly expenses.

• To switch to more expensive providers.

What is reverse budgeting?

• Spending all your income before saving.

• Saving a fixed amount first and then spending the rest.

• Not tracking your expenses at all.

• Investing all your income in stocks.

What is tax loss harvesting?

• Selling investments that have decreased in value to offset gains and reduce taxes.

• Ignoring your investment losses.

• Selling investments at a gain to increase your tax liability.

• Buying new stocks to increase your portfolio.

What is the wash sale rule?

• A rule that mandates you to invest in real estate.

• A rule that requires you to sell all your stocks at the end of the year.

• A rule that prevents you from buying back the same security within 30 days of selling it.

• A rule that allows you to buy back a stock immediately after selling it.

What is a 529 plan?

• A loan for buying a house.

• An investment account for educational expenses with tax advantages.

• A type of credit card.

• A retirement savings account.

What is a custodial Roth IRA?

• A retirement account for adults.

• An account for buying stocks.

• A savings account for minors to invest in a Roth IRA before age 18.

• A type of loan for education.