Chapter 8: Investing and Retirement

13. T/F: You should switch your investment strategy often, based on market conditions.

5. If you own stock in a company, you will receive ___ when earnings are given to shareholders,

3. True or False: The more liquid an investment, the less return.

21. Good investment portfolios do not have to be ________.

14. A non-wage compensation provided to employees in addition to their normal salary is a(n):

16. ______ are great for your emergency fund because they are liquid and stable.

4. Why should you save money and invest?

34. A dividend allows for the distribution of a portion of company’s earnings to shareholders.

18. A mutual fund portfolio has investment dollars in __ different classes of financial assets.

32. Which government agency regulates the stock market?

7. Why would you want to diversify your investments?

11. A _____ refers to a retirement plan found in nonprofit organizations.

28. A portfolio includes:

35. A ____ is a savings plan that helps families set aside funds for future college costs.

19. Do single stocks and mutual funds carry the same amount of risk?

31. ___ dollars is $ that's invested within a retirement plan. Can be tax deferred or tax free.

22. When should you start investing?

15. A savings account sold by insurance company that provides payments to holder is defined as:

12. T/F: The New York Stock Exchange is the smallest organized stock exchange in the U.S.

23. If u quit job but have $ saved in retirement plan, you should roll savings into an IRA w/:

29. Having a(n) _____ in a company or investment means that you own a piece of that business.

20. True or False: You can only start investing if you have a lot of money.

6. A smart financial planner will use savings accounts and money market accounts for:

26. Quality of an asset that permits it to be converted quickly into cash without loss of value

2. _______ are a good investment option.

27. _______ is the relationship of substantial reward compared to the amount of risk taken.

1. What kind of mutual funds are included in properly diversified long-term investments?

30. Define stocks.

33. This federal agency collects taxes and enforces the Internal Revenue Code:

9. _______ allow you to take a moderate risk for above-average growth.

10. T/F: You should still fund your 401(k), even if your job doesn't match your contributions.

8. You ensure that retirement savings will not be subject to income tax by contributing to:

25. How much you are able to save and invest depends on:

17. The last time the U.S. issued war bonds was during ______.

24. T/F: Borrowing against your retirement plan is a good way to get out of financial trouble.