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WorksheetsInvesting Concepts
Total questions: 20
Worksheet time: 15mins
A key difference between saving and investing is
Saving is for everyone, investing is for the wealthy
Your money is insured when investing, it is not in savings
Investing has a guaranteed return, savings does not
Saving is for less than 5 years, investing is for more than 5 years.
Which of the below is an employer based retirement plan that both employees and employers contribute to?
Traditional IRA
Roth IRA
401K
Pension
Which of the below is an rare employer based retirement plan that only employers contribute to?
Traditional IRA
Roth IRA
401K
Pension
Which of these accounts do you set up at a brokerage firm or other financial institution?
401K
Pension
(IRA) Individual Retirement Agreement
What is the difference between a Traditional and Roth IRA?
A traditional IRA's contributions are not taxed until you withdraw them at retirement. A Roth IRA's your contributions are taxed before you invest.
A Roth IRA's contributions are not taxed until you withdraw them at retirement. A Traditional IRA your contributions are taxed when you invest them in.
What account is the best idea if you want to be in a lower tax bracket at retirement?
Traditional IRA
Roth IRA
Which of these accounts will NOT change if you switch jobs?
IRA
401K
Pension
Which of below accounts is your contribution directly taken out of your paycheck?
401K
IRA
Which type of account will your employer often "match" your contributions?
Traditional IRA
401K
Roth IRA
Pension
What does tax deferred mean?
You pay taxes when you put the money into the account and when you withdraw it.
You pay taxes now when you contribute to your account.
You pay taxes at a later date when the money is withdrawn.
The money put into this type of account has already had taxes taken out.
Pension
401K
Roth IRA
Traditional IRA
What type of account allows for instant diversification?
mutual fund
stock
bond
A bond is a(n) _____________ instrument.
Ownership
Debt
A stock is a(n) _________ in a company or fund.
Ownership
Debt
Payments made to shareholders of a company's stock are called?
coupon
interest
dividend
If Ralph invest $1000 dollars at 6% interest, how long will it take him to double his money using the Rule of 72?
21
12
6
24
Saul put $1500 in his savings account at 4.5% interest. 6 years later, how much interest has he earned?
$45
$450
$40,500
What is 3.2% expressed as a decimal?
.032
3.2
32
5
You purchase 100 shares of Ravioli Den for $45/share. One year later, you sell the shares for $52/share. What was your TOTAL GAIN for your investment in Ravioli Den?
$0
$200
$700
$900
Which has the highest investment risk?
Stock
Mutual Fund
