Preparing an Investment program
Factors affecting choice of Investments
Taxes and financial planning
Income tax fundamentals
Filing Taxes
100
An amount of money you can obtain quickly in case of immediate need.
What is Emergency Fund
100
A high risk investment made in the hope of earning a relatively large profit in a short time.
What is Speculative Investment
100
An effective tax strategy is vital to this.
What is successful financial planning.
100
A set amount on which no taxes are paid.
What is Standard deduction?
100
Form that 60% of Americans use on their annual taxes.
What is 1040?
200
A short term loan that is approved before the money is actually needed.
What is Line of Credit
200
The total income you receive on an investment over a specific period of time divided by the original amount invested.
What is Rate of Return.
200
A tax imposed on specific goods and services, such as gasoline, cigarettes, alchoholic beverages, tires, and air travel.
What is excise tax.
200
3 types of Income.
What is Earned income, Investment income, Passive income?
200
The 5 filing statuses allowed for tax payment.
What is Single, Married filing joint return,Married filing Separate, Head of Household, Widow or widower?
300
Three suggestions stated by the book for obtaining money to establish an investment program.
What are, Pay yourself first, Take advantages of empoyer-sponsored retirement programs, Participate in an elective savings plan, Make a Special savings effort one or two months each year, and take advantages of gifts.
300
The ability to buy or sell an investment quickly without substantially affecting the investments value.
What is liquidity.
300
Taking advantage of tax benefits while paying your fair share of taxes.
What is tax planning?
300
An amount not included in gross income.
What is exclusion?
300
The most common error on tax filing.
What is failure to sign tax return?
400
Number of months salary recommended for emergency fund.
What is 3 months?
400
2 types of risk involved with investments.
What is Predictability of Income, and Investment will decrease in value.
400
A tax levied on the value of property bequeathed by a deceased person.
What is Inheritance tax?
400
Total tax due divided by taxable income.
What is Average tax rate?
400
A detailed examination of your tax return by the Internal Revenue Service.
What is tax audit?
500
2 characteristics of investment goals?
What are specific and measurable.
500
The risk of an investments return being lowered by periods of high inflation.
What is Inflation Risk.
500
A tax imposed on the value of a person's property at the time of his/her death.
What is estate tax?
500
Failure to pay taxes on time may result in this.
What is 25% penalty in addition to taxes owed?
500
The use of illegal actions to reduce one's taxes.
What is tax evasion?
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