Retirement Planning
The most common retirement benefit is...
Social Security
Stocks pay ________, and means you _____ part of the company.
dividend, own
True or False:
IRA cannot be a joint account owner.
True
True or False:
401K can have joint account owners
False
When is the best time to start investing?
Sooner the better
What are the common intestment types?
Mutual funds, exchange-traded funds (ETFs), and sometimes individual stocks
What is IRA?
A type of retirement-savings plan that is not usually done through an employer.
401K plans are so named because:
Of the tax law that authorizes them
Why is it not a good idea to make early withdrawals from your 401(k)?
You usually have to pay a strick plenty
A share of the value of a company, which can be bought, sold, or traded as an investment and which gives the investor small partial ownership of the company, is called what?
A stock.
What is ROTH IRA?
This type of IRA is not tax deductible but may not be subject to income tax upon withdrawal.
ROTH means...
You pay taxes "right now"
contribute after paying taxes
What is the official retirement age, according to the US government?
67
What are bonds?
An investment product where you agree to lend your money to a government or company at an agreed interest rate for a certain amount of time.
Contributions to which type of IRA are tax deductible?
Traditional IRA
What is the main difference between a Traditional 401k and a ROTH 401K?
Traditional 401(k)s offer tax-deferred growth, while Roth 401(k)s offer tax-free withdrawals in retirement.