Baby Steps
Chapter 1
Chapter 2
Chapter 3
100
Invest 15% of your household income into Roth IRAs and pre-tax retirement plans.
What is Baby Step #4?
100
Pre-Authorized Checking
What is PAC?
100
Savigns accounts with an insurance company.
What are Annuities?
100
When an investment is in a qualified plan or has a special tax treatment.
What is Tax-favored?
200
Pay off all debts except the house utilizing the debt snowball.
What is Baby Step #2?
200
Interest paid on interest previously earned.
What is compound interest?
200
A savings account with a certificate.
What is a Certificate of Deposit or C.D.?
200
Individual Retirement Arrangement
What does the acronym IRA stand for?
300
3 to 6 months expenses in savings.
What is Baby Step #3?
300
Percentage paid to a lender for the use of borrowed money.
What is interest rate?
300
Leaves risk and means to spread things around.
What is Diversification?
300
A contribution plan offered by a corporation to its employees which allows them to set aside tax-deferred income for retirement purposes.
What is a 401K?
400
Pay off your home early.
What is Baby Step #6?
400
Anything that can happen will happen.
What is Murphy's Law?
400
Keep it simple, stupid!
What does KISS stand for?
400
Educational Savings Accounts
What is does ESA stand for?
500
$1,000 in a n emergency fund (or $500 if you make less than $20,000 a year)
What is Baby Step #1?
500
Saving money for a specific purpose to allow interest to work for you rather than against you.
What is a Sinking Fund?
500
What investment carries an extremely high degree of risk.
What is Single Stock?
500
A retirement plan that grows tax free
What is Roth IRA?
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