Types of Risks
Can lead to losses of personal or business property.
What is property risk?
List some benefits of Roth IRA
Tax-free growth, passed down to family, tax-free withdraws, no required minimum distributions.
What does GTI stand for?
Gross total income.
What does IRA stand for?
Individual Retirement Account.
Can result in personal losses such as health and personal well being.
What is personal risk?
Breaking up the amount of into different payments. (Ex. Monthly payments)
What is installment plan?
Offers the chance of gain or loss.
What is Speculative risk?
A plan that helps you manage your money.
What is a budget?
Presents no chance of loss but no opportunity for gain.
What is pure risk?
What age are you eligible to begin withdrawing from a Roth IRA?
59 1/2
What are the four ways to manage risks?
Avoid, transfer, assure, and insure.
What is an example of a fixed expense?
Rent, cell phone bill, car payments.
Relates to harm or injury to other people of their property because of your actions.
What is liability risk?
True or false: Can you invest in any fine art?
False.
A systematic process of managing Risks to achieve set objectives.
What is risk Management?
What is an example of a variable expense?
Food, utility bills, gas, home and auto maintenance, entertainment.
Can result in a financial loss along with personal, property, and liability risk.
What is economic risk?
What is the penalty that can occur if you withdraw before the age 59 1/2?
10% penalty.
A car accident is an example of what type of risk.
economic risk.
True of False: A Roth 401(k) is free from federal taxes.
True.