Characteristics
Investments have the potential for ________ returns.
What is higher returns.
A form of lending to a company or the government
What is a bond.
In a bond, the organization pays ____ to the lender (purchaser) until the ________ is reached.
What is interest, maturity date.
The possibility that an investment will fail to pay the expected return or fail to pay a return at all
What is Investment Risk
How do tax-advantaged investments benefit the consumers?
What are reduce, defer, or adjust the current year tax liability.
All investments have some ________.
What is risks.
A share of ownership in a company
What is a stock
Dividend returns are share of profits distributed in cash to ______________
What is stockholders.
The rise in the general level of prices
When are taxes paid?
What is taxes are paid when money from investment returns are withdrawn
Investments are important to building _____________.
What is net worth.
Ownership of residential or commercial property or land
What is Real Estate
Capital gain returns are: unearned / earned income received frm the sale of an ______ above / below its purchase price.
What is unearned, above
The uncertainty regarding the outcome of a situation of event
What is Risk
Why should an employee invest in an employer sponsored plan?
What is employer may match funds (up to a limit).
Two examples of long-term goals for investments are
What are retirement, college, buying a house.
Have the potential for significan fluctuations in return over a short period of time
What are Speculative Investments
Types of returns with a real estate investment include:
What are Capital gains (selling property for more than what was paid), Rent (charging others for the use of the property).
The danger that money won't be worth as much in the future as it is today
What is Inflation risk
What are examples of retirement accounts?
What are 401K, 403B (for tax-exempt organizations)
The rate of return = _____ / ______ = ________
What is total reture, amount of money invested, rate of return.
When a company combines the funds of many different investors
What is Mutual fund
What are Futures, options, collectibles.
List the following from low risk to high risk... Speculative investments, stocks / real estate, bonds, mutual funds.
Each individual has a tolerance for the amount of risk they are willing to take. What are the three categories that describe these investors?
What are Conservative, moderate, and aggressive.