RETIREMENT PLANNING
What is a 401(k)?
A retirement savings account
What is a tax?
Money paid to the government
What is compound interest?
Interest earned on previous interest
What is a stock?
A small share of ownership in a company
What planet is closest to the Sun?
Mercury
What is the main goal of retirement planning?
To save money for the future
What is income tax?
A tax on money you earn
What is one source of retirement income?
Social Security
What is a bond?
A loan made to a company or government
What is the largest land animal?
African elephant
What does IRA stand for?
Individual Retirement Account
What is a tax refund?
Money returned when you paid too much in taxes
What are the two types of IRA discussed in the notes?
Traditional IRA and Roth IRA
What does it mean to diversify?
Spread your money across different investments
Which NBA team has won the most championships?
Boston Celtics
Why is starting to save for retirement early helpful?
Your money has more time to grow
What is net income?
Money you have after taxes and deductions
What is the difference between gross income and net income?
Gross income is how much you earn; net income is how much you keep.
What is a high-risk investment?
An investment with a higher chance of losing money
What animal can sleep while standing up?
Horse
What is compound interest?
Earning interest on your money and previous interest
Why do governments collect taxes?
To pay for public services
What happens if you paid less taxes during the year than you owe?
You must pay the difference when you file your taxes
Why do people invest?
To potentially grow their money
Which NFL team has won six Super Bowls?
Pittsburgh Steelers and New England Patriots