Investment Basics
This financial ratio, calculated by dividing current assets by current liabilities, measures a company's ability to pay short-term obligations.
Current Ratio
This legal document allows individuals to specify how their assets will be distributed upon their death.
Will
What is the name of the retirement account that allows employees to contribute a portion of their paycheck before taxes are taken out?
What is a 401K
What is the term for the interest charged on the unpaid balance of a credit card?
What is APR?
What year was WMU founded?
What is 1903?
This is a bond issued by a local or state government to fund public projects, often with tax-exempt interest.
What is Municipal Bond
This is the legal process of validating a will and ensuring that the deceased’s wishes are carried out.
What is Probate
At what age can you start receiving Social Security retirement benefits, but at a reduced amount?
What is 62.
What is the recommended amount of money to have in an emergency fund?
3-6 Months
The Amount of moons Pluto has.
What is 5
The statistical metric that measures the sensitivity of a stock’s returns to the returns of the overall market is often used to assess systematic risk.
What is Beta.
This estate planning strategy involves giving away assets during one’s lifetime to reduce the value of the taxable estate.
Lifetime gifting
A tax-advantaged savings account that helps people save for education expenses.
What is a 529 plan (Qualified Tuition Plan)
Often used in the mortgage industry, what is the 16-letter term that refers to the likely ability of a borrower to repay debt?
Creditworthiness
Which automobile company was founded in Detroit and is known as the "Big Three" alongside Ford and Chrysler
What is General Motors?
This type of risk is inherent in the overall market and cannot be eliminated through diversification, often measured by beta in the context of stock market investments.
Systemic risk
What is the 2024 estate tax exemption for a married couple?
27.22 million
What are the contribution limits for a traditional IRA in 2024 for individuals under 50?
What is $7,000
What is the recommended percentage of your income to save for retirement each year?
What is 15%
How many years of experience is needed to sit through the CFP?
What is 3?
This measure, represented as a ratio, quantifies how much a portfolio's return surpasses a risk-free rate relative to its total risk, as captured by standard deviation
Sharpe Ratio
This type of irrevocable trust is designed to provide a surviving spouse with income from trust assets during their lifetime, after which the remaining assets pass to other beneficiaries, often used to minimize estate taxes.
What is a Qualified Terminable Interest Trust?
What is the penalty for early withdrawal from a retirement account, such as a 401(k), before the age of 59½?
What is 10% early withdrawal penalty?
What is the maximum percentage of your credit limit that is recommended to avoid negatively impacting your credit score?
What is 30%
What is the pH level of pure water?
What is 7?