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WorksheetsMutual Funds and 401k's
Total questions: 16
Worksheet time: 8mins
What are mutual funds?
Accounts offered by banks to save money with fixed interest rates.
Funds managed by professional fund managers to invest pooled money from investors.
Government-issued bonds to support public funding.
Private investment opportunities for accredited investors only.
By buying a mutual fund, what are you contributing to?
A personal retirement account.
A private equity fund.
The money pool that fund managers use to invest.
A government savings scheme.
What should you read to learn about what's in a mutual fund?
The fund's history
The fund's portfolio
The fund's stock prices
The fund's shareholder letters
What is the prospectus of a mutual fund compared to?
The fund manager's resume
The fund manager's "I will..." report
The fund's financial statements
The fund's marketing brochure
To understand the goals of a mutual fund, what document should you read?
The annual report
The financial summary
The prospectus
The investment policy
Who typically does the investing when you invest in a mutual fund?
You need to select stocks yourself.
A professional investor.
A government agency.
An automated computer program.
Why might mutual funds be a good option for someone who does not want to do extensive research on stocks?
They require a lot of research.
They are only for experienced investors.
They are managed by a professional investor.
They do not involve stocks.
What is one of the benefits of your investments being diversified in a mutual fund?
All investments are in a single stock.
Investments are spread across various sectors.
Investments are limited to one sector.
Diversification is not a benefit of mutual funds.
What is a Roth IRA?
A tax-disadvantaged investment account for education.
A tax-advantaged investment account for retirement.
A checking account with high-interest rates for young adults.
A credit account used for purchasing real estate.
When can you withdraw from a Roth IRA?
During your working years.
After purchasing a home.
During retirement.
At any time without restrictions.
What is a Company Sponsored 401k?
A government-provided healthcare plan.
A retirement savings plan offered by employers.
A personal investment portfolio.
A college savings plan for children.
How are contributions made to a Company Sponsored 401k plan?
By direct cash payments from the employee.
Through deductions from the employer's profits.
By contributing portions of your paycheck to the account.
Through yearly tax returns.
What happens to the contributions made to a Company Sponsored 401k plan?
The contributions are used to pay company debts.
The contributions are given to charity.
The contributions are kept in a savings account without interest.
Those contributions get invested.
What might an employer do with your contribution to a 401k plan?
Take a percentage as a service fee.
MATCH your contribution.
Invest it in the company's stock exclusively.
Return it at the end of the fiscal year.
What is a 403(b) plan?
A retirement plan for government employees.
A retirement plan for non-profit organizations like churches, hospitals, etc.
A retirement plan for private sector employees.
A retirement plan for self-employed individuals.
What is a 457 Plan?
A common retirement plan for all sectors.
A retirement plan for non-profit organizations.
A rare kind of retirement plan offered by state and local government organizations.
A retirement plan for federal government employees.
