Retirement Basics
Retirement is not an “old person thing,” but a __________ person thing.
What is a smart person thing?
ROI stands for this financial term.
What is Return on Investment?
In this type of market, stock values rise by 20%.
What is a bull market?
CDs generally have this level of risk.
What is low risk?
This retirement account allows tax-free growth when qualified withdrawals are made.
What is a Roth IRA?
The Fifth Foundation is to build wealth and ________.
Give
A liquid asset can easily be turned into this.
Cash
In this type of market, stock values drop by 20%
What is a bear market?
These are considered extremely risky because all your money depends on one company.
What are single stocks?
Employer matching contributions in a 401(k) are often called this.
What is free money?
Investing early gives compound growth more of this.
Time
Buying stock means you own a small piece of this.
What is a company?
The stock market is compared to this amusement park ride because of its ups and downs.
What is a roller coaster?
When you buy one of these, you are lending money to a company or government.
What is a bond?
Taking money from an IRA before this age usually causes a penalty.
What is 59 1/2?
The recommended amount to invest for retirement after becoming debt-free is this percentage of income.
What is 15%
This famous index tracks the top 500 companies on the New York Stock Exchange.
What is the S&P 500?
Investors who panic and do this on a roller coaster “get hurt.”
What is jump off?
These investments pool money from many investors into different assets.
What are mutual funds?
This rule says never invest in something you do not understand.
What is the KISS rule?
This is considered your largest wealth-building tool.
Your income
This investing strategy helps reduce risk by spreading investments among many assets.
What is diversification?
This is the purpose of a stock market index.
What is measuring market performance?
These complex insurance investments often come with high fees.
What are annuities?
This is something you should never borrow against for investing purposes.
What is your 401(k)?