Retirement Plans
Are pension plans still common today?
No; They are less common
What is the point of savings?
Money set aside for future use
What is the highest possible credit score?
850
What is the amount you pay regularly to keep your insurance policy active called?
Premium
In which form of investing do you own a piece of the company?
Stocks
Who is the 403{b) retirement plan directed to?
Employees of nonprofit organizations, schools, and certain government organizations
What savings account is used for unexpected costs?
Emergency Fund
What is the typical grace period for a credit card?
21-25 days
What should you do if something unexpected happens (ex: a car accident)?
File a claim
What is the additional payment for borrowing called on a bond (listed as a rate)?
Interest
What does "tax-deferred" mean?
Taxes on earnings or contributions are postponed until the funds are withdrawn
What is the best method/rule for the best saving?
50/30/20 Rule (50% needs, 30% wants, 20% savings)
What does APR stand for?
Annual Percentage Rate
True or False: The higher your deductible, the more you pay out-of-pocket?
True
True or False: Every stock pays out dividends
False
What’s the difference between the requirements of setting up a 401(k) and an IRA?
401(k) must be set up through an employer, while an IRA can be opened individually by anyone with earned income
The extra money you earn when you save is called?
Interest Rate
What percentage of your available credit should you ideally use to maintain a high score?
Less than 30%
What are 3 of the most common types of insurance?
Medical, Auto, Renters/Home, Life, Phone
What is the market called that is full of investor confidence and record highs (animal)?
Bull Market
In 2023, how much could you contribute annually to your IRA?
$6,500-7,500
Locking away your money, not touching it, but earning more interest is seen in what account?
Certificate of Deposits
What percentage of your credit score is based on payment history?
35%
What is the written agreement called?
Policy
What is the organization that regulates the markets called (3 letters)?
SEC (Securities and Exchange Commission)