Home Library Explore SAT

Home Library Explore SAT

Saving, Investing, and Portfolio Building Flashcards | StudBud

Explore/Saving, Investing, and Portfolio Building

Saving, Investing, and Portfolio Building

6 terms·StudBud Administration·15 plays

Imported from external platform

Flashcards6 cardsFPractice quizPHost liveL

Questions 6

Answers

1
Why should athletes assess their career timeline when investing?
Retirement accounts are not available for athletes
Risk is not a concern for high earners
Athletes can rely on lifelong sponsorships
Athletic careers are typically shorter, requiring careful planning
2
Why is it important for student-athletes to start learning about financial literacy early in their careers?
Financial literacy isn't important until after college
So they can start spending money as quickly as possible
Develop good money habits and prepare for important financial decisions
Because all student-athletes will eventually go pro
3
What is a key advantage of a Roth IRA?
Pre-tax income goes in
No tax on withdrawals in retirement
Requires a high initial investment
Employer matches contributions
4
Which of the following is a recommended budgeting strategy?
Spend first, save later
Follow the 50/30/20 rule
Save for emergencies after they happen
Invest all income
5
Why should you diversify your investments?
Increase personal risk tolerance
Mitigate risk of any one investment
Maximize risk for higher rewards
Guarantee high returns
6
What are some common financial challenges that athletes face, and how can they be avoided?
Unlimited income potential - avoided by not worrying about finances
Too many opportunities to save money - avoided by spending more
Short earnings window/lifestyle inflation-avoid by wise budgeting/investing
No financial responsibilities - avoided by spending money freely