Taxes
This form is filled out when you start a job. It influences the amount of taxes taken out of each of your paychecks.
W-4
T/F
Mutual funds are operated by professional money managers and require you to pay a fee for their services.
True
The key to investing is
Time
The cost your pay, monthly or annually, for insurance coverage.
Premium
True
T/F
A W-2 shows all the money you earned and all the taxes you paid in one month.
False
S&P 500, The Dow Jones, The Nasdaq are examples of
Indexes
If my ROI is 6.7% and my expense ratio is 1.2% - what is my real ROI?
5.5%
Sam gets in a car accident on the way to school and it's his fault. Before his insurance will assist in paying for the accident, he must first pay $500. This is called his ________.
Deductible
Housing expenses should be what percentage of your budget?
30%
If Sally paid a total of $8240 in taxes and she owed $7,670. What will happen will she files her taxes?
She will receive a refund of $570.
What is the purpose of an index?
Provide information about the market as a whole - whether it is moving up or down.
This investment option is similar to a 401(k) except you do not receive employer matches.
IRA - Individual Retirement Account
If one is high the other is typically low.
If you can make a larger down payment on a home, your monthly mortgage payments are __________, you will likely receive a ________ interest rate and you will avoid paying PMI.
The United States used this type of tax system for federal income tax.
Progressive Tax System
What is the major difference between a mutual fund and an index fund?
Passively managed / Actively managed
Steve worked as a firefighter for 42 years and upon retirement, he will start receiving this type of retirement, paid mostly by his employer.
Pension
If you are an unhealthy person or predict you will require medical services often, should you choose a higher or lower premium in exchange for extensive coverage?
Higher
Lower deductible
When is Private Mortgage Insurance required?
When you have less than 20% equity in your home.
Name 5 things your state and federal tax dollars are used.
roads, schools, park, social services, national defense, housing assistance, health programs
What is your ROI in the following example?
Initial investment $325
One year later it is valued at $340
ROI - Profit / Original investment
ROI - 4.6%
All-in-one diversified investment option that automatically reallocates your funds for you based on the your target date of retirement.
Life Cycle Fund
What are four factors that affect your premium for car insurance.
Age, Gender, Car make and model, Expected annual mileage and driving record
Appraisal fee, attorney fee, credit report fee, home inspection fee, and lead-based paint inspection fee are a few examples of this type of cost associated with a mortgage.
Closing Costs