WorksheetsPersonal Finance II
Total questions: 17
Worksheet time: 9mins
What is an IRA?
An investment account a person may create to invest for any reason
A retirement account that a person with a job may create for themselves
An investment account that you can use to save and pay for school
A retirement account that a business makes and employees may choose to invest in.
What is a 401K?
An investment account a person may create to invest for any reason
A retirement account that a person with a job may create for themselves
An investment account that you can use to save and pay for school
A retirement account that a business makes and employees may choose to invest in.
What is a 529?
An investment account a person may create to invest for any reason
A retirement account that a person with a job may create for themselves
An investment account that you can use to save and pay for school
A retirement account that a business makes and employees may choose to invest in.
What is a brokerage account?
An investment account a person may create to invest for any reason
A retirement account that a person with a job may create for themselves
An investment account that you can use to save and pay for school
A retirement account that a business makes and employees may choose to invest in.
What is a 401K employer match and an example of an employer match?
2 answers!
If an employee chooses to invest a certain amount of money, the business will match that amount of money
Where a company puts compensation like salary and bonuses
An employ chooses to invest $1,000 in the 401K, so the business also puts in $1,000. The employee gets $2,000 in their 401K.
An employee has been working for a company for 20 years, so the business automatically puts a $20,000 matching bonus into the employee's 401K
Which of these accounts will change if you switch jobs?
Roth IRA
401K
529 Plan
Brokerage
What is the difference between a regular IRA and Roth IRA?
A regular IRA's contributions are not taxed until you withdraw them at retirement. A Roth IRA's contributions have already been taxed
A Roth IRA's contributions are not taxed until you withdraw them at retirement. A regular IRA's contributions are taxed when you invest them in.
What role does inflation play in retirement planning?
It decreases the value of saved money over time
It increases the value of investments significantly
It has no effect on retirement planning
It reduces the cost of living
Who usually makes a 401k?
A business creates this investment account for it's employees
Anyone with a job (taxable income) can create this account for themselves
Parents or students can make these to save for future education
Anyone of legal age can create this account and begin to invest
Who usually makes an IRA?
A business creates this investment account for it's employees
Anyone with a job (taxable income) can create this account for themselves
Parents or students can make these to save for future education
Anyone of legal age can create this account and begin to invest
Who usually makes a 529 Plan?
A business creates this investment account for it's employees
Anyone with a job (taxable income) can create this account for themselves
Parents or students can make these to save for future education
Anyone of legal age can create this account and begin to invest
Who usually makes a Brokerage Account?
A business creates this investment account for it's employees
Anyone with a job (taxable income) can create this account for themselves
Parents or students can make these to save for future education
Anyone of legal age can create this account and begin to invest
What is a fiduciary?
What can you invest in using an IRA
Almost any investment
Only target date funds
Only bonds and index funds
Only stocks
Why do investors say diversifying is important?
If you only invest in one thing, you can put in much more money. That means you will make more money in the future.
Buying many things so that you can still make money even of a few things do not make money.
What is a robo-advisor/investor?
An investment account that is automatically built and managed by algorithms.
Investment accounts that invest in companies that are developing Artificial Intelligence
An investment account that is has A.I. advice, but you must pay higher fees.
An investment program funded by buyers that trades in limited holdings and is professionally managed.
All investment companies are fiduciaries.
Ture
False
