Retirement Basics
What does "401(k)" stand for?
Section 401(k) of the IRS tax code
What does "diversification" mean?
Spreading money across different types of investments to reduce risk
True or False:
You need to be rich to invest.
False
What age can you generally take money out of a retirement account without penalty?
59 1/2
What's the term for owning part of a company?
A share of stock
True or False:
Keeping in savings always beats investing.
False - inflation erodes savings over time.
True or False:
You must start taking required minimum distributions (RMDs) at age 73?
True
True or False:
Bonds are generally less risky than stocks.
True
Name one common money myth about retirement.
I'll spend less in retirement, or
Social Security will cover everything
What's one advantage of a Roth IRA over a Traditional IRA?
Tax-free withdrawals in retirement, or
Exemption from Required Minimum Distributions
What does "S&P 500" refer to?
A stock market index of 500 large U.S. companies
True or False:
Financial planning is only about investing.
False - it also includes taxes, insurance, estate planning, and more.