Personal Finance I
What is a 401k, and what does 401k stand for?
A qualified retirement account, and it is just a tax code
Do stocks or bonds give you equity (partial ownership) in a company?
stocks
What does IRA stand for?
Individual Retirement Account
Does whole or term life insurance build cash value?
Whole Life Insurance
If you wanted to buy stocks what kind of account would you need to open?
brokerage account
What popular job usually offers a 403(b) for a retirement?
Teacher
What do some companies pay just for holding their stock?
Dividends
What does APY stand for?
Annual Percentage Yield
What is Long Term Care Insurance?
Insurance for when you need assistance for daily life activities.
Name 2 types of jobs that offer pensions for retirement?
Teacher, Police Officer, Firefighter, Union Jobs etc.....
What is a 529 savings account used for?
College Funding
What does the term ROI stand for?
Return on Investment
What does CPI stand for?
Consumer Price Index
What is the tax on a life insurance claim?
There is no tax
What is the standard amount of money you should have in an emergency savings account?
3-6 months of your income
What is your greatest financial asset?
Your ability to earn an income
What does it mean when a company is highly leveraged?
They have a lot of debt/bondholders
What does ETF stand for?
Exchange Traded Funds
What is the benefit of a variable life insurance policy?
What document has a companies assets and liabilities on it?
A balance sheet
What is the difference between Roth IRA vs. Traditional IRA?
Qualified withdrawals from a Roth IRA are tax free.
What is the par value of a bond?
$1,000
What does FINRA stand for?
Financial Industry and Regulatory Authority
Explain the difference between whole life insurance and term life insurance? (at least 2 differences)
What is the maximum amount of money you can gift in a year without being taxed on it?
$18,000