College
Roth IRA
401(k)
403(b)/Rule of 72
Free for all
100
True or False You should save for college using saving bonds?
False
100
True or False The Roth IRA is an after-tax investment that grows tax free.
What is True
100
True or False Never roll over your 401(k) when you leave a company.
False
100
What is a 403(b)
It is a retirement plan found in non-profit groups (schools, hospitals)
100
Manager of a child's UTMA account until he or she reaches age 21.
What is Custodian.
200
Save for college by first using this type of account?
What is Educational Saving Account (ESA)
200
True or False The contribution amount for a Roth IRA in 2008 is $5,000.
What is True
200
The company Jason works for matches his 401(k) contribution up to 5%. Jason takes advantage of this and contributes $200 per month. At the end of one year, how much money will be in his account?
What is 4800
200
Using the Rule of 72, how long it will take your money to double at 12% interest.
What is 6 years.
200
A retirement plan for self-employed people.
What is SEPP.
300
Which of the following are good ideas to save for college? a. Saving Bonds b. ESA c. Pre-Paid college tuiton d. Life Insurance
What is b. ESA
300
What is an advantage of a Roth IRA? a. Offers more Choices b. Grows tax free c. Higher bracket at retirement d. All of the above
What is d. all of the above
300
If your company does not provide any type of 401(k) match, what is the best investment option?
Invest the maximum amount allowed in the Roth IRA, and then go back and fund the 401(k) to complete 15% or your income.
300
What interest rate will double your money in five years?
What is 14.4%
300
A deferred compensation plan
What is 457
400
What does Baby Step 5 say about saving for your children's college?
What is using tax-favored plans.
400
Under which condition are you not able to make a tax-free withdrawal from your Roth IRA? a. Over 59 and one half years old b. First-time home purchase up to $10,000 c. Major career change and temporary drop of income d. Death or Disabiity
What is c. Major career change and temporary drop of income.
400
Caleb's company offers a 5% match on a 401(k). If he makes $40,000 annually, what should his investment plan look like? a. $6,000 total investment: $2000 in a 401(k) and $4000 in a Roth IRA b. $6000 total investment; $6000 in a 401(k) c. $6000 total investment; $6000 in a Roth IRA
What is a.$6,000 total investment: $2000 in a 401(k) and $4000 in a Roth IRA
400
True or False 457 plans are designed for employees of non-profit organizations such as hospitals and school.
What is false
400
If you borrow against your retirement plan, under which conditions must you pay it back? a. if you leave the company voluntarily. b. if you fired c. you die d. All of the above
What is d. All of the above.
500
What are two nevers of college saving?
What is save for college using insurance, savings bonds or pre-paid college tuition.
500
What are the benefits or a Roth IRA?
The biggest benefit of the Roth IRA is that it grows tax free. Other benefits include flexibility and more choices.
500
why should you still put money into a 401(k) when the company does not provide a match?
Always save money for retirement, whether or not the company matches. You can fund your Roth IRA first, but chances are you will have money to also fund your 401(k). If you put nothing into your 401(k), you iwll get nothing back.
500
Order the following investment steps according to priority (first to last) Build Wealth Fully Funded Emergency Fund ESA 15 % income into Roth IRAs and Pre-tax retirement
What is 1. Fully funded emergency fund 2. 15 % income into Roth IRAs and Pre-tax retirement 3.ESA 4.Build Wealth
500
What is one reason not to rely on Social Security?
1. Does not provide a large sum of money each month. 2. How long will it be around.
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