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WorksheetsPF ch 12
Total questions: 30
Worksheet time: 15mins
What is The Fifth Foundation?
Pay cash for your home
Build wealth and give.
Save for retirement.
Pay cash for college.
A security that represents part ownership of a company is called a(n) _______.
Stock
Bond
Certificate of Deposit
Annuity
When you invest in a mutual fund, you are contributing to a pool of money that will be . . .
Given to hundreds of local charities in your area
Invested in a mix of stocks, bonds and money market accounts
Taxed based on each individual investor's annual salary
Put into a separate savings account for your children to inherit someday
Diversification reduces your _______ by using a mix of investment types in your portfolio.
Income
Retirement funds
Risk
Mutual funds
_______ is the process of figuring out how much money you'll need in retirement and creating a plan to get there.
Investment banking
Outrageous generosity
Retirement planning
Retirement accounting
_______ is the cure for _______.
Investing wisely; estate planning
Love; the income gaps in our society
Generosity; selfishness
Selfishness; thinking of others first
Investing your money earns you more money because of . . .
Checking accounts
Mortgage payments
Compound growth
Short-term savings
Before you invest, you should make sure a mutual fund has done well for 5-10 years.
True
False
When riding the highs and lows of the stock market, remember . . .
You can't go wrong when investing money into stocks.
The S&P isn't a reliable source when it comes to navigating the growth and decline of stocks.
It's unpredictable and risky. You should pull your money out and steer clear.
It will level out, so stick with it!
Roth IRA, 401(k), 403(b), 457, and Simplified Employee Pension are all examples of ________.
Tax forms
Mutual funds
Retirement plans
Investment bankers
Social Security benefits are meant to ________ your income.
Replace 40%
Tax 100% of
Decrease
Fully replace
When you invest, your goal is to earn a negative rate of return on investment.
True
False
Certificates of deposit and money market accounts are both examples of investments with ________ risk and ________ return.
Low; low
Low; high
High; high
High; low
It's okay to borrow money from your retirement account, but don't borrow money to invest in it.
True
False
You should wait to be generous until you have money to give.
True
False
Live like no one else now, so later you can live and ________ like no one else.
Be selfish
Work hard
Hoard your resources
Give
Mutual funds are less risky and can outperform the stock market because . . .
They're not diversified.
They guarantee a high rate of return.
They're fully liquid.
They invest in several companies at once.
Never _______ something you don't _______.
Buy; invest in
Finance; think will appreciate in value
Invest in; understand
Diversify; enjoy
Be aware of any _______ you might receive, but don't bank on it as a key part of your retirement plan.
Tax refunds
Inheritance
Bonus checks
Additional work
The three components of compound growth are money, time and _______.
A large paycheck
Investments
Retirement
Rate of return
Never invest your money in _______ because it/they are extremely risky.
CDs
Mutual funds
Single stocks
Real estate
_______ is key when it comes to compound growth.
Time
Money
Attitude
Roth IRA
When you're retired, you'll still have to pay taxes.
True
False
When donating money, you should always . . .
Assume the best and trust the charity will use your donation well.
Identify a cause that matters to you and research the charity thoroughly.
Make short-term commitments to various charities.
Give to as many organizations as possible to share the love.
Usually, the more liquid an asset is (like cash in the bank), the less return you can expect.
True
False
What does "bull and bear" reference?
The stock market
The real estate market
Your investments
Mutual funds
When using a Roth plan, you invest your money after paying taxes, and the investment grows tax-free.
True
False
Why might someone choose to diversify their investments?
To keep them from getting bored with one form of investment.
To balance high-risk investments with more steady and predictable ones.
There isn't a good enough reason to diversify your investments.
To keep the risk as high as possible so the reward is equally high.
If you're over the age of (a) , you need a will.
You can build a legacy you'll be proud of by . . .
Giving your time and money to others
Keeping 10–12 months of living expenses in your emergency fund
Thinking of yourself first
Sending your kids to trade schools
