Welcome to Wall Street
You're welcome to purchase one of these and have part ownership of a company that is publicly traded.
What is a stock/share?
In this type of retirement account, you do not pay taxes as you invest, but upon retirement, you pay taxes as you withdraw your money.
What is a Traditional IRA?
This retirement account can be contributed to by both oneself and their employer.
What is a 401k.
This is used to determine what you will earn from a specific stock, bond, or retirement account.
What is the rate of return?
This account allows you to put money in savings for a child's future college fund.
What is a 529 Account?
Some companies offer this to it's shareholders. It gives shareholders a distribution of the companies profits.
What are dividends?
This is the recommended retirement account, as you don't pay taxes when you withdraw your money during retirement.
What is a Roth IRA?
This is a federal program in the U.S. that provides retirement benefits to qualified people.
What is Social Security?
The "Rule of 72" is calculated in a simple equation to determine years it will take to double your investment. Name the equation.
What is 72/R (interest rate)?
With this, you own a part of the company or organization.
What is a stock?
This is the time frame that the stock market is officially open.
What is 9:30 am - 4:00 pm ET?
A solid goal is to invest roughly this percentage of your income into retirement savings.
What is 10-15% of your income?
What is the most unstable form of retirement income?
What is maturity?
This helps to spread the risk between different accounts.
What is a mutual fund?
This index fund averages out the 30 biggest companies on the market. It is often used as a marker of how the market as a whole is doing.
What is the Dow Jones Industrial Average?
This allows your money to compound annually based on your principle balance in a savings account.
What is simple interest?
Starting your retirement young helps you take advantage of this which helps you earn interest on your interest!
What is compound interest?
This is basically an IOU from a company or the government regarding money you have lent.
What is a bond?
This account is a type of mutual fund or collective trust fund designed to help investors, particularly those saving for retirement, manage their investments.
What is a TDF or Target Date Fund?
This is the name of Warren Buffett's billion-dollar company.
What is Berkshire Hathaway?
The "n" in the compound interest equation stands for this.
What is "# of times it is compounded annually"?
Most employers do this it comes to contributing to their employees retirement earnings?
What is "match" how much the employee contributed?
This is what refers to a strong stock market.
What is a bull?
This is funds that trade on exchanges, generally tracking a specific index.
What is an ETF or Exchange-Traded Fund.