Insurance
What is insurance?
Protection from potential loss
Why do you pay a premium?
To avoid high costs
What are types of credit?
Credit cards
Installments
What is a stock?
Portion of a company that you own once purchased
What are taxes used for?
Improve community and country
Who is a policyholder?
The one buying the insurance
What type of insurance is Medicaid and Medicare under?
Social security
Who issues credit cards?
Stores, banks, and businesses
What is an IRA?
Retirement fund
How are we taxed?
Making an income or purchasing products
What is the premium?
Amount you pay
What is home owners insurance?
Protects home from damage and theft or people on your property
What is diffidence in secured v. Unsecured credit cards?
Secured is set limit to be used for the card, and unsecured has no limit
What do investors hope to accomplish when buying stocks?
Buy at lower prices and sell at high prices
How is net income calculated?
Find taxes and subtract from gross income
what are the factors of auto insurance?
Personal circumstance
Deductibles
Discounts
Levels of coverage
What is health insurance for?
Pays some of your medical costs
What is the most dangerous and common form of credit?
Credit cards
When can retirement funds be withdrawn?
When 59.5 or older and retired
How do you find how much taxes you need to pay?
Multiply tax bracket percentage with gross income
If you are paying a $2,000 deductible and your in a $10,000 accident how much is the insurance company paying?
$8,000
Who is a beneficiary?
Someone who is designated money or possessions?
How is credit score calculated?
1. Payment history
2. Amount owed
3.Length of credit history
4. New credit
5. Types of credit
What are factors when investing?
1. Risk tolerance
2. Interest rate
3. Domestic/international economic conditions
4. Taxes and inflation
5. Length of time
6. Access to funds
A lawyer makes $120,000 per year and is taxed 40% what is their amount taxed and net income?
Tax amount 120,000*.4=48,000
Net income 120,000-48,000=72,000