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Investing & Retirement Quiz Videos 47-48

Total questions: 15

Worksheet time: 8mins

Name
Class
Date
1.

Which of the following is a good investment option?

a)

Gold

b)

Viaticals

c)

Mutual Funds

d)

Futures

2.

In some cases, employers will match the employee contribution, but you should fund your plan whether your company matches or not. This statement refers to:

a)

Single stocks

b)

Roth IRA

c)

Bond funds

d)

401(k)

3.

A retirement plan found in non-profit organizations such as churches, hospitals and schools.

a)

GIC

b)

457

c)

401(k)

d)

403(b)

4.

Employee benefits packages:

a)

Should not be a consideration when looking for a job

b)

Never include retirement plans

c)

Are the same regardless of the company you work for

d)

Are non-wage compensations provided to employees in addition to their normal wages or salaries

5.

A savings account sold by an insurance company, designed to provide payments to the holder at specified intervals, usually after retirement.

a)

Money Market

b)

Mutual fund

c)

Single stock

d)

Annuity

6.

If you get into financial trouble, borrowing against your retirement plan is a good option.

a)

True

b)

False

7.

A savings plan operated by a state or educational institution designed to help families set aside funds for future college costs.

a)

529 Plan

b)

Guaranteed Investment Contract

8.

The Rule of 72 is calculated by ...

a)

multiplying 72 by the number of years it takes to double your investment.

b)

dividing 72 by the expected interest rate.

c)

None of the above

9.

Why is real estate not a liquid investment?

a)

You can't put a "Liquidation Sale" sign in the yard.

b)

It cannot be quickly converted to cash.

c)

None of the above

10.

Which of the below is an employer based retirement plan that both employees and employers contribute to?

a)

Traditional IRA

b)

Roth IRA

c)

401K

d)

Pension

11.

What is the difference between a Traditional and Roth IRA?

a)

A traditional IRA's contributions are not taxed until you withdraw them at retirement. A Roth IRA's your contributions are taxed when you invest.

b)

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.

12.

What does tax deferred mean?

a)

You pay taxes when you put the money into the account and when you withdraw it.

b)

You pay taxes now when you contribute to your account.

c)

You pay taxes at a later date when the money is withdrawn.

13.

If Ralph invest $1000 dollars at 6% interest, how long will it take him to double his money?

a)

21

b)

12

c)

6

d)

24

14.

What percentage of your annual should you invest?

a)

20%

b)

10%

c)

15%

d)

5%

15.

What book did Dave say his Billionaire friend told him to read?

a)

The Millionaire Next Door

b)

The Tortoise and the Hare

c)

Oh, the Places You'll Go

d)

Seven Habits of Highly Effective People