Basics & PYF
What does the acronym "PYF" stand for?
Pay Yourself First
This is the most common investment tool, used by 90% of people.
Mutual Funds
A stock represents a share in the ________ of a company.
Ownership
What does the acronym "IRA" stand for?
Individual Retirement Account
According to the slides, this is the "secret" to making money.
Time
This term describes using up your entire paycheck before the next one arrives, leaving no room for emergencies.
Living paycheck to paycheck
Mutual funds are "diversified" because they are made up of many different what?
Stocks
These are the shortened, abbreviations used to identify public stocks.
Ticker symbols
This type of account is tax-free when withdrawn at retirement.
Roth IRA
This type of interest builds on both the principal balance and accrued interest.
Compounding interest
At a minimum, we suggest you start by saving at least this amount.
$1
These mutual funds include companies primed for revenue or earnings growth faster than their peers.
Growth Funds
What is the ticker symbol for Microsoft?
MSFT
This type of retirement account is used by private, for-profit companies.
401K
This simple rule is used to determine how long it takes for an investment to double.
Rule of 72
It is recommended to save this much for a "starter" emergency fund.
$100
These funds can invest in companies located anywhere in the world outside of the investor's home country.
International Funds
When you "buy low and sell high," you are seeking to make money through these.
Capital Gains
This type of account is used by non-profit, tax-exempt organizations.
403B
According to the Financial Planning Pyramid, these two investments represent the "highest risk."
Penny Stocks and Commodities
Name two surprise expenses mentioned that can put your bank account "in the red."
Accidents, medical emergencies, or surprise fees/costs
These funds seek capital gains by investing in high-growth companies but carry greater risk.
Aggressive Growth Funds
This ticker symbol belongs to the company Costco.
COST
TSA stands for this type of retirement account.
Tax-sheltered annuity
Name one of the four "lowest risk" and "lower earnings" options on the Financial Planning Pyramid.
Savings Account, U.S. Savings Bonds, Certificates of Deposit, or Checking Account