Investments
What are the who main investment options.
Which retirement option is provided to employees from their employers?
When should we start saving for retirement and why?
Early because of compound interest.
Which of the following will earn more over time and why?
3% Compound interest thats Annual, Quarterly, Monthly, or Semi-Annual?
Monthly, because it compound more frequently.
If you choose to stop eating out to save money for a car? What is your opportunity cost?
Not enjoying eating out.
What are the 3 types of bonds?
Government, Municipal, and cooperate.
Can your employer match a percentage of your contribution to a 401k?
Yes, generally around 3%
Market, Or Free Enterprise System
If I am close to retirement and I want to find a safe investment with a higher return than a savings account. Which Option would be best.
Mutual Fund, Bonds, Real estate, or Commodities?
Bonds
What is Gross Domestic Product (GDP)?
The amount of product a given country produces in a single year.
The storage system for crypto currency is called what?
Blockchain
Individuals who do not receive a 401k from their employers.
True or False? Some of the taxes paid by workers go towards social security?
True. Part of our Mandatory Tax Deductions fund Social Security.
What is compound interest?
Interest paid on interest or the principal plus interest that has already occured.
If you are in a car accident what is the amount that you have to pay out of pocket called?
Deductible
Savings accounts earn what % of interest per year.
Less than 1
Which retirement option is tax-free when you withdraw it?
Roth - IRA
What is Social Security?
A federal retirement fund for retirees and those with disabilities.
If Coach Riley wanted to invest into a group of individual stocks managed by someone else what option would he choose?
Mutual Fund
Who establishes the interest rates in the United States?
The Federal Reserve
Profit earned off of selling an asset is called what?
Capital Gains
There is not limit to how much I can contribute to IRA's and Roth IRA's. True or False
False. There is a max.
Most-public sector employees (like teachers) are covered by?
Pension Plans
Jan needs a place to store her emergency fund. What type of investment or account would she want to use?
Savings
Why might life insurance premiums or monthly cost be different for two different people who are the same age?
Past medical history and the amount of coverage they want.