WorksheetsInvesting Quiz part 2
Total questions: 16
Worksheet time: 12mins
What are the steps to starting investing?
1) Pick an account. 2) Fund the account. 3) Pick your nose
1) Pick investments 2) Stress out. 3) Pick an account.
1) Pick an account. 2) Fund the account. 3) Pick investments
1) Fund the account. 2) Pick an account. 3) Pick investments
Why is earning money from investments called "Passive Income"?
You do not have to do any work to make money
It is optional; you can do it or you can pass.
You have to pass an investment test in order to be an investor
It is something that you can pass on to your family
What is Buying investments a little bit at a time by investing the same amount of money at the same time again and again?
Dollar Cost Averaging (DCA)
Financial advisor
Fiduciary
Diversify
What investment strategy historically makes the most money over a long period of time?
Buy low; sell high
Buy the dip
Timing the Market
Dollar Cost Averaging
What very important thing do experts say that every adult should have BEFORE they start investing?
A certified public accountant
An emergency fund
Employer matching on contributions
A financial advisor
How much money should you have in your emergency fund
$10,000
3-6 months of needs
1-2 months of needs
As much as you possibly can
The legal responsibility to do what is best for someone you are taking care of
Dollar Cost Averaging (DCA)
Financial advisor
Fiduciary
Diversify
What is the interest you earn on your interest. The more time that the investment has to reinvest in itself, the faster it begins to grow?
Diversify
Set it and forget it
Robo-advisor
Compounding interest
What is A computer algorithm that tracks and picks investments for you?
Diversify
Set it and forget it
Robo-advisor
Compounding interest
What is having an automatic investment plan and not stressing yourself out or changing your plans by checking how your money is doing a lot?
Diversify
Set it and forget it
Robo-advisor
Compounding interest
What is investing in many different things in order to lower risk
Financial advisor
Diversify
Fiduciary
Compounding interest
You usually cannot just save enough money to retire with. You usually have to do some investing.
True
False
According to Mrs. B. what should you do if you would like to invest but do not love learning about how to invest?
Learn anyway; you should not trust anyone else with your money
Do not invest until you feel like you are ready
learn about one type of investment and understand it really well
Hire a professional to invest for you (Financial advisor or Robo-advisor)
If you are using a financial advisor, before you start investing with them you should NOT:
Make sure they are a fiduciary
Ask questions about their fee structure, credentials, goals, and communication style
Do some research and read to understand what they are offering. Find professional and third party reviews
Pick the one that shows you how they have made other clients a lot of money in a short amount of time
Why does leaving your money in the bank usually mean you lose money over time?
Inflation
Bank fees
The possibility of that banks going out of business
The FDIC
Why do some people say that investments are taxed twice? (pick two!!)
When you buy an investment with money you earned from working, you had to pay income taxes
When you sell an investment, you have to pay capitol gains taxes.
Workers in the US pay almost twice as much taxes as billionaires
401k, 403b, Roth IRA, IRA, and 529 Plans reduce the amount of taxes you have to pay
