Unit 4 - Investments

investors can buy a piece of a mutual fund rather than pay for all the stocks in a portfolio

guarantee of pension benefits because you worked there long enough

You should choose HIGH RISK investments over the LONG-TERM when you're . . .

cost per class hour + fees

You should shift about 20%-40% to MEDIUM-LOW RISK investments when you're . . .

to increase earnings on savings

Which describes COMPOUND INTEREST best?

2 years; have not "graduated" college

Savings account where customers commit $$ for longer periods of time to earn a higher % rate

Which of these CANNOT be deducted from your federal income taxes?

money paid for the use of borrowed money

investing in a range of stocks to help lower your risk if one company fails

thru government employer; contribution $ set; no choice on how invested; pre-tax contributions

Which one of these is a NON-need-based federal financial aid?

saving money before spending it on something else

part of a stock quote that gives you current change in stock price

4 years; have graduated college

the company's abbreviation as used on the NYSE

6-7 years total (4 years for Bachelor's + 2-3 years); post-graduate degree

investment types insured against loss (guaranteed) =

8-12 years total (4 years pre-med Bachelor's + 4-6 years more)

Begin shifting at least 25% to LOW RISK investments (easier to pull money from) when you're ...

part of a stock quote that gives you what the range of prices was in the last year

investors can easily redeem (or sell) their shares at any time

A collection of stocks or bonds of various corporations

IOU issued by a company or government in exchange for a loan that will be repaid with %

federal form for post-secondary education financial aid

part of a stock quote that gives you price of stock at close of trading the day before

unsteady rising price of goods and services over time, which decreases your purchasing power

short-term, high-interest loan that's designed to help you make it between paychecks

recommended amount of money to keep in an emergency fund

Which one of these is a NEED-based federal financial aid?

up to $5,500; not through work; investment is totally your choice; pay taxes at retirement

A share of a corporation sold to the public

an agreement to give a person money with the expectation that the money will be paid back

through private employer; up to $18,000; choose how invested; pre-tax contributions

up to $5,500; not through work; investment is totally your choice; pay taxes up-front

part of a stock quote that gives you how many shares were traded that day

opportunity cost is ...