Saving vs Investing
Power of Investing
Stocks, Bonds, Mutual Funds
Investing Strategies & Techniques
Vocabulary
100
Your 1st Savings Priority
What is an emergency fund?
100
Earning Interest on Interest
What is Compound Interest?
100
A per-share payment received for owning stock(s) of a company
What is a dividend?
100
By setting up this technology, an investment company can invest your money for you before you spend it?
What is Automatic Withdrawal?
100
Spreading out your investments. Don't put all your eggs in 1 basket.
What is Diversification?
200
Your 1st investing priority
What is retirement?
200
Formula that shows you how long it will take to double your money using compound interest.
What is the Rule of 72?
200
Stocks you ____ Bonds you ____
What is Stocks you Own. Bonds you Loan.
200
The maximum amount of money that can be contributed to an IRA in 2017?
What is $5,500?
200
A mutual fund that is tied to a stock market measure like the Russell 2000.
What is Index-Linked Mutual Fund?
300
A long-term investment would be at least how many years long?
What is 10 years?
300
How many year it would take to double $1,000 if it earned 12% interest per year?
What is 6 years?
300
A legally required document for mutual fund investors that describes a mutual fund's objective, expenses, performance, etc.
What is a prospectus?
300
Putting away 10% of your earnings for retirement.
What is Pay-Yourself-1st? #STARTNOW
300
Assets minus Liabilities = ______
What is Net Worth?
400
By investing long-term, you will beat this economic concept?
What is inflation?
400
Interest rate that would be necessary if you wanted to double an amount of money in 11 years.
What is 6.55%
400
The per share value of a mutual fund which is calculated by dividing the number of shares in the fund by the value of the fund portfolio.
What is NAV? (Net Asset Value)
400
The practice of investing regular dollar amounts at regular time intervals.
What is Dollar-Cost-Averaging?
400
Up and down movements of the stock market. Don't let these stress you out from investing.
What is Fluctuations?
500
This term refers to how quickly or easily money in accounts can be converted to cash.
What is Liquidity?
500
Billy invests $2500 into an index-linked mutual fund for his daughter on the day she is born. The investment averages a 9% return. They never add another dollar to the investment. How much will the investment approximately be worth when she is 50 years old?
What is a little more than $160,000?
500
The yield of a bond that has a par value of $1500 dollars and a coupon rate of 7% but was sold on the bond market for $1300.
What is 8.07%
500
Both Traditional and Roth IRA's provide great tax advantages. Describe the difference in tax advantages that the Traditional and Roth provide.
What is Traditional IRA is a pre-tax investment where you invest gross income and are taxed when it is withdrawn. Roth IRA is an after-tax investment where you invest your net income and your investment grows tax free.
500
Putting off taxes until a later date. Type of investment where you are not taxed until you take the money out.
What is Tax Deferred?
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