Taxes
What happens if you draw from your 401k or IRA before 59 1/2
10% penalty
2-3%
An online financial advisor.
Robo-advisor
A type of fund that can be traded just like a stock.
ETF (Exchange Traded Fund)
When interest rates increase Bond prices
Decrease
The amount of time an investor holds a security so they can benefit from a lower capital gains tax rate.
12 months.
The average return of the US Stock market +/- 1-2%?
Investing to beat the market
Active Investing
Index fund
The amount a person receives in a pension is based on the amount of money they earn and....
How long they worked.
Minimum age one can file for Social Security Retirement benefits
62
Instead of investing a large sum of money at one time a person consistently investing smaller sums of money over a longer period of time. This practice is called...
Dollar Cost Averaging
Will provide many of the benefits of a single bond with more diversification.
Bond fund
A loan to a municipality, government or corporation
A Bond
Type of IRA that does not result in any tax benefits when you put money into it, but you are not taxed on its income in retirement
Roth IRA
When one takes a High Risk they expect...
Buying low and selling high results in
Capital Gains
A type of fund that is built for a retirement date in the future.
Target Date Fund
How Jane can have her money in a savings account earning 3% but her purchasing power is decreasing.
Inflation is higher than 3%
Current workers
Putting aside a fixed amount of money for savings and investing before you ever see your paycheck
Pay yourself first
Investors in stocks make money through capital gains and...
Dividends
The type of mutual fund that tries to beat the market and has higher fees
Actively managed.
A market that is steadily climbing
Bull Market