Investing for Retirement

1.

Multiple Choice

1 min

1 pt

Which of the below is an employer based retirement plan that both employees and employers contribute to?

Traditional IRA

Roth IRA

401K

Pension

2.

Multiple Choice

1 min

1 pt

Which of the below is an employer based retirement plan that only employers contribute to?

Traditional IRA

Roth IRA

401K

Pension

3.

Multiple Choice

1 min

1 pt

What type of employers usually offer pension plans for employees?

Government agencies

fast food restaurants

small start ups

private schools

4.

Multiple Choice

1 min

1 pt

Which of these accounts do you set up at a brokerage firm or other financial institution?

401K

Pension

Individual Retirement Account

5.

Multiple Choice

1 min

1 pt

What is the difference between a Traditional and Roth IRA?

A traditional IRA's contributions are not taxed until you withdraw them at retirement. A Roth IRA's your contributions are taxed when you invest.

A Roth IRA's contributions are not taxed until you withdraw them at retirement. A Traditional IRA your contributions are taxed when you invest them in.

6.

Multiple Choice

1 min

1 pt

What account is a good idea if you are in a lower tax bracket than you will be at retirement?

Traditional IRA

Roth IRA

7.

Multiple Choice

1 min

1 pt

Which of these accounts will NOT change if you switch jobs?

IRA

401K

Pension

8.

Multiple Choice

1 min

1 pt

Which of below accounts is your contribution directly taken out of your paycheck?

401K

IRA

9.

Multiple Choice

1 min

1 pt

Which type of account will your employer often "match" your contributions?

Traditional IRA

401K

Roth IRA

Pension

10.

Multiple Choice

1 min

1 pt

What does tax deferred mean?

You pay taxes when you put the money into the account and when you withdraw it.

You pay taxes now when you contribute to your account.

You pay taxes at a later date when the money is withdrawn.

11.

Multiple Choice

1 min

1 pt

The money put into this type of account has already had taxes taken out.

Pension

401K

Roth IRA

Traditional IRA

12.

Multiple Choice

1 min

1 pt

What type of account allows for instant diversification?

mutual fund

stock

bond

13.

Multiple Choice

1 min

1 pt

A bond is a(n) _____________ instrument.

Equity

Debt

14.

Multiple Choice

1 min

1 pt

A stock is a(n) _________ instrument.

Equity

Debt

15.

Multiple Choice

1 min

1 pt

Which has less risk?

Bonds

Stocks

16.

Multiple Choice

1 min

1 pt

Payments made to shareholders of a company's stock are called?

coupon

interest

dividend

17.

Multiple Choice

1 min

1 pt

If Ralph invest $1000 dollars at 6% interest, how long will it take him to double his money?

21

12

6

24

18.

Multiple Choice

1 min

1 pt

Saul put $1500 in his savings account at 4.5% interest. 6 years later, how much interest has he earned?

$45

$405

$40,500

19.

Multiple Choice

1 min

1 pt

What is 3.2% expressed as a decimal?

.032

3.2

32

5

20.

Multiple Choice

1 min

1 pt

You purchase 100 shares of Ravioli Den for $45/share. One year later, you sell the shares for $52/share. What was your TOTAL GAIN for your investment in Ravioli Den?

$0

$200

$700

$900

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