Investment Types
This is a debt investment where you lend money to a company or government.
What is: A bond
Investing in a mix of stocks, bonds, and money market accounts lowers this.
What is: Risk
This retirement account allows you to contribute pre-tax dollars and offers employer matching.
What is: 401(k)
This retirement plan allows employer matching contributions, making it a popular option.
What is: 401(k)
A security that represents part ownership or equity in a company.
What is: A stock
When investing, you should never put your money into something you don't ____.
What is: Understand
A retirement plan where you contribute after-tax dollars, and the money grows tax-free.
What is: Roth IRA
The primary benefit of a Roth IRA is that your money grows this way.
What is: tax-free?
The process of dividing your money among different investments to reduce risk.
What is: Diversification
These three components determine the growth of compound interest.
What is: Time, Money, & Rate of Return
This type of retirement plan is offered by non-profit organizations.
What is: 403(b)
The primary benefit of a Roth IRA is that your money grows this way.
What is: Grows tax free
An investment tool made up of a pool of money from multiple investors, used to invest in stocks and bonds.
What is: A mutual fund
You should never borrow money for this type of investment.
What is: A retirement account
A government program that provides retirement income based on your earnings history.
What is: Social Security
An investment type sold by insurance companies that offers regular payments, often with high fees.
What is: an annuity?
This measures the gain or loss on an investment relative to the amount invested.
What is: Return on investment (ROI)?
The reason investing your money earns you more money over time.
What is: Compound growth?
This retirement account allows you to contribute pre-tax dollars, but your withdrawals are taxed.
What is: Traditional IRA
Contributing to both a 401(k) and a Roth IRA helps you benefit from this strategy.
What is: tax diversification?