Ch.8 Review: Investing and Retirement

This type of investment carries an extremely high degree of risk.

Various types of investments & keeps you from "putting all your eggs in one basket".

A list of all your investments is called a...

Your return comes in the form of dividends (owner's profit) when you invest in...

Investing money pre-tax is different than investing money after-tax.

Disadvantages of investing in real estate include these, EXCEPT:

Employee benefits packages are used to increase financial security for staff members.

As risk increases....

Common employee benefits are:

A benefit of this investment is your ability to influence it's value, through improvements.

IRA stands for...

This type of investment is like an I.O.U. the company promises to pay you back on a future date

This type of investment has moderate risk & returns and is best for long-term.

An employee can contribute $ to their __ and in some cases the employer will match it.

This type of retirement savings plan is offered by a corporation to its employees.

A Roth IRA is funded with after-tax money, which allows you to use the money in your Roth...

Usually available to government employees, this is deferred compensation.

Which of these are a HORRIBLE investment?

Before investing in anything you should...

The risk return ratio can best be explained as the comparison between...

The more liquid an investment, typically there is...

This means how easily/quickly you can convert your investment to cash.

You should NOT invest in a 401K if your company doesn't match your contribution.

This type of investment is considered "patriotic" but has a low return and low risk.

This is retirement plan for nonprofit organizations like schools, churchs, and hospitals.

A viatical, a type of HORRIBLE investment, is when someone with a terminal disease sells...

When you cash out a Roth IRA account there are no taxes.

Saving is less than 5 years, whereas investing is more than 5 years.

This is a low-risk banks savings account with check-writing priviledges.

This type of investment is a savings account sold by an insurance company.

AFTER-TAX contibutions are taken from your net pay before taxes & no taxes are due @ withdrawal

Fixed annuities have a low interest rate & high fees, which make them a good investment.

This type of HORRIBLE investment are agricultural or mining products.

Savings acct with slightly higher interest rate b/c you commit to save your $ at least 6 mons.

Which of the following is NOT a type of mutual fund?

PRE-TAX contibutions are taken from your gross pay before taxes & taxes are due @ withdrawal.

This type of investment is created by a pool of money from multiple individual investors.

A qualified plan is a __ investment, which means it has special tax treatment.

This is the least liquid investment.

After 5 years, you can make tax-free & penalty-free withdrawls under these conditions, EXCEPT: