Money 101
What is the term for money you earn on your original investment, plus interest previously earned?
Compound interest
What does S&P stand for in S&P 500?
Standard & Poor's
What does IRA stand for?
Individual Retirement Account
BONUS LIGHTNING ROUND
EACH TEAM ANSWERS AS MANY QUESTIONS AS POSSIBLE IN 60 SECONDS
Who is featured on the $100 bill?
Benjamin Franklin
What is the general rule of thumb for an emergency fund?
3-6 Months of Expenses
What does ETF stand for?
Exchange-Traded Fund
Which generally allows tax-free qualified withdrawals in retirement: Traditional IRA or Roth IRA?
Roth IRA
What type of life insurance generally provides coverage for a specific period of time?
Term Life Insurance
What U.S. city is known as the home of the Federal Reserve Bank's headquarters?
Washington D.C
If you make $100,000 but spend $110,000, what do you have?
A problem. 😂
Acceptable answer: a $10,000 deficit
Which generally has greater volatility: stocks or bonds?
Stocks
At what age do required minimum distributions generally begin under current law for many Americans?
73
What type of insurance replaces a portion of your income if you become unable to work due to a qualifying disability?
Disability Insurance
What is the most valuable U.S. coin currently in regular circulation?
Dollar Coin
What is the largest expense most Americans will face over their lifetime?
Housing
True or False: A diversified portfolio can eliminate investment risk completely.
False
What is the name for money an employee contributes to a 401(k) before taxes are taken out?
Pre-tax contribution
True or False: Life insurance is only useful if you have children.
False
Who appears on the $20 bill?
Andrew Jackson
If inflation averages 3% per year, approximately how much purchasing power would $100 have after 24 years?
About $50
If you invest $500/month for 30 years and average 8% annually, approximately how much could you have?
About $745,000
A 25-year-old invests $300/month until age 65. Assuming an 8% average annual return, approximately how much could they accumulate?
About $1 million
Which is generally more expensive: insuring someone for $1 million for 20 years or $1 million permanently?
Permanent Life Insurance
What was the original purpose of Social Security when it was created in 1935?
To provide financial support for retired workers and certain other vulnerable groups.