Based on the graphic, what advantage does this 401k have over other types of investments?
answer
It incentivizes employees to contribute by offering an employer match.
question
Money that has been spent and cannot be recovered is known as costs.
answer
sunk
question
Which statements are true regarding an individual retirement account? Check all that apply.
answer
-People can contribute to the account until retirement age.
-Contributions to the account are limited each year.
-Contributions can be deducted from federal taxes.
question
Which is a commodity someone might invest in?
answer
natural resources
question
People who make money investing in the stock market
answer
must pay taxes on profits.
question
Which are common mistakes people make when investing? Check all they apply.
answer
-They put all of their money into one kind of investment at a time.
-They invest more money than they can afford.
-They focus heavily on familiar investment opportunities.
-They hold onto investments longer than they should to recoup losses.
question
Analyzing the likelihood of the economy changing is part of understanding the of an investment.
answer
RISKS
question
A couple has decided to increase their income from investments for when they retire in twenty years. Which is the best way they can accomplish that goal?
answer
by enrolling in a 401k and investing in the stock market
question
Which investment advice would Gayle most likely give to Alex?
answer
Spread your investments in several different areas.
question
Which investment has the least liquidity?
answer
NOT
a savings account
NOT
property
question
An investment with more liquidity would be ideal for someone who
answer
knows they will need cash in the near future.
question
What is the purpose of making an estate plan?
answer
to protect property for distribution after death
question
What are the main rules of writing a will? Check all that apply.
answer
-In most states, you must be eighteen or older.
-The document must clearly state that it is your will
-A will must be written in sound judgement and mental capacity.
-An executor must be named to oversee the distribution of the estate.
question
What is the role of an executor in estate planning?
answer
settling the estate according to what the deceased person wants
question
What are the responsibilities of an executor? Check all that apply.
answer
-paying any taxes that are due on the estate
-taking inventory of the property and belongings
-appraising and distributing the deceased person's assets
-settling any debts that are owed by the deceased
question
A declination is filed by a(n) ___1___ when he or she ___2___.
When this occurs, a contingent ___3___ takes over the responsibilitie
answer
1.) EXECUTOR
2.) DOES NOT WANT TO SERVE
3.) EXECUTOR
question
What are the benefits of naming a secondary beneficiary in a will? Check all that apply.
answer
-It could prevent a will from going into probate.
-It avoids confusion if the primary beneficiary dies first.
-It allows for another option if the primary beneficiary cannot inherit.
question
How is a 401k different from an individual retirement account (IRA)?
answer
NOT
A 401k is a good long-term investment strategy.
question
Which investor is making a common error?
answer
an employee of a popular hardware store who invests only in that company's stock
question
William is not generally a risk-taker, but he knows he may need to step out of his comfort zone to make enough money for retirement.
answer
NOT
a savings account
NOT
a US savings bond
question
Who regulates markets where investments are traded?
answer
NOT
corporate entities
NOT
individual investors
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