Investment Vehicles
This investment vehicle provides smaller investors with more flexibility and allows them to buy and sell investments.
Brokerage
What gives small investors access to professionally managed portfolios?
Mutual Funds
What are the three accounts (buckets) can you use to pay yourself first?
Emergency Account
Short-Term Account
Wealth-Building
If you trust yourself and miss 2-3 days of personal investment, the long-term effect won't be that much. (True / False)
False
What are the three investment vehicles?
Annuities, Advisory Accounts, and Brokerage
Is it safer to invest with several smaller support lines or one large support line?
Breaking up your investment across several smaller support lines is safer than making one large investment.
Which account can be used for repairs, bills, or unexpected expenses?
Emergency Account
Which is a shortcut for estimating the doubling time of an investment using compound interest?
Rule of 72
Which vehicle is designed for stability and often used for income planning during retirement?
Annuities
How do you earn from a mutual fund? (Name at least two ways)
Dividend Income
Capital Gain Distributions
Growth in Share Value
What type of account allows money to grow tax-free?
ROTH IRA
How old do you need to be to start investing in yourself? (ROTH IRA or growth savings)
Trick question: you can start today!
What is investing?
Investing is putting your money to work by buying assets - stocks, real estate, mutual funds - so it can grow and produce more money over time.
Why would someone choose Mutual Funds for their investment? (Provide at least two reasons)
Professional money management
Affordability
Growth Potential
What are some accounts found in the Wealth-Building bucket? (Provide at least two)
Roth IRA
401(k)
Investing
Who would make more in 30 days? Someone who gets 1K every day or someone who starts with one cent and it doubles daily?
The person who starts with a penny and doubles it daily.
What is the goal of investment vehicles?
To invest your money in the right place(s).
Fund manager sells investment for more than they were purchased for, and now you get a percent of the profit. What fund earning type is this?
Capital Gain Distribution
What is an investment strategy where you invest the same amount of money regularly, no matter whether prices are high or low?
Dollar Cost Averaging
When we have questions related to finance, who are people we can ask for trusted information from?
Financial Advisors