Investing Basics
This is using money today with the goal of it growing in the future.
What is investing?
You take this whenever you could lose money in an investment.
What is a risk?
Someone wanting a tax break today may choose this IRA.
What is Traditional IRA?
This is earning interest on your original money plus past interest.
What is compound interest?
This rule estimates how long it takes money to double.
What is the Rule of 72?
The government taxes the profit on this money from an investment
What is capital gains?
This is how comfortable someone is with ups and downs in investing.
What is risk tolerance?
Both Roth and Traditional IRAs are commonly used for this life goal.
What is retirement?
Which grows more: $1,000 for 30 years or $1,000 for 5 years at same rate?
What is $1,000 for 30 years?
Mutual funds help reduce risk through this strategy.
What is diversification?
Stocks, bonds, and mutual funds are examples of these.
What are Investments?
One of the D's that refer to constantly putting money in, (one word)
What is Discipline ?
A younger worker expecting higher taxes later may prefer this IRA.
What is Roth IRA?
Someone who waits 10 years to invest ends up with more or less money?
What is less money?
This investment combines money from many investors into many assets.
What is a mutual fund?
Investing usually works best with a short-term or long-term mindset?
What is long-term?
One of the D's that refer to "not putting all your eggs in one basket"
What is Diversification?
Stocks, bonds, mutual funds, and ETFs make up What IRA
What is Both traditional and Roth IRA?
The biggest factor in compounding interest is often this.
What is time?
At 8% return, money doubles in about this many years.
What is 9 years?
You giving money to the government and they give you more in return.
What are government bonds.
One of the D's that refer to investing a fixed dollar amount at each period
What is Dollar-Cost-Adverage
This IRA is tax-free when withdrawing later
What is Roth IRA?
Compound interest rewards investors who start early and stay…?
What is consistent?
At 6% return, money doubles in about this many years?
What is 12 years?