WorksheetsTDFs, 401ks, and IRAs
Total questions: 15
Worksheet time: 22mins
What's the main difference between a Roth IRA and a Traditional IRA?
Roth IRAs have higher interest rates
Roth IRAs have you pay taxes upfront
Roth IRAs have higher fees
Roth IRAs are riskier investments
What is the main appeal of an index fund?
They are always actively managed to add a human touch
They are typically low cost and diversified investments
They are always managed by a robo-advisor to remove human bias
They give you partial ownership of a single company
What is the benefit of a target date fund (TDF)?
TDFs come with lower fees
TDFs adjust assets allocation automatically based on retirement year
TDFs are insured against loss for the first 5 years
TDFs guarantee a certain rate of return by the target date
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 these accounts will NOT change if you switch jobs?
IRA
401K
Pension
Which type of account will your employer often "match" your contributions?
Traditional IRA
401K
Roth IRA
Pension
Which of the following statements about having a financial planner manage your investment portfolio is TRUE?
You don’t have a say in how you want to manage your portfolio.
Having a manager often costs less than managing the portfolio yourself.
The manager will charge fees that will decrease the profits you gain.
Financial planners are guaranteed to beat the market all the time.
Why might a target date fund be a good option for someone who wants a hands-off approach to investing?
Target date funds automatically adjust your asset allocation as you get to retirement.
Target date funds are actively managed by a fund manager.
Target date funds only invest in low-risk bonds.
Target date funds offer low fees while also promising to outperform the market.
A disadvantage of using a robo-adviser might be that…
You are charged higher fees than if a human fund manager adjusted your portfolio
You may not be able to get advice from a human financial advisor when you want it
You don’t have any input as to how your portfolio is invested
You’ll be put on a waitlist to use the robo-adviser since there are only a handful of them to choose from
Which of these accounts do you set up at a brokerage firm or other financial institution?
401K
Pension
Individual Retirement Account
401K's are sponsored by who?
The Government
The Employer
The Employee
The State you live in.
The younger you are they suggest that you should contribute in
Roth
Traditional IRA
Education
Your Career
If your employer offers a match, you should at least invest enough to take full advantage of that perk
No Thanks
Don’t say no to free money!
Just say No to free money!
There are two basic types of 401(k)s
Conditional & Supplemental
401K + &
401k +++
Traditional & Roth
Broth & Stock
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 when 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.
