| A | B |
|---|
| Do this to a 401(k) when you leave a company | Rollover to an IRA |
| When will you pay taxes on a pre-tax retirement plan? | Withdraw or cash out |
| Retirement plan for employees of schools and hospitals | 403(b) |
| Percentage to invest into investment in baby step 4 | 15% |
| Is a Roth IRA considered tax free or pre-tax | Tax free |
| The ability to quickly convert an investment into cash | Liquidity |
| High risk investments | Commodities and Futures |
| Spreading around your money and lowering your risk | Diversification |
| Best place for an emergency fund | Money Market |
| Shared profits of a stock with the investors | Dividends |
| Savings account with a certificate | CD |
| Investment that is the least liquid | Real estate |
| Average amount of companies invested in a mutual fund | 90-200 |
| Ownership in a company | Share |
| Is a mutual fund or a single stock more risky | Single Stock |
| This helps build disipline | Pre-Authorized Checking |
| Baby step 2 | Pay off debt |
| Short term purchases and emergency funds | Savings |
| Long term wealth building | Investing |
| Save up money monthly for items that will need replacing in the future | Sinking Fund |
| 3 keys to saving money | Discipline, focuse, making saving a priority |
| 3 reasons to save | Emergencies, build wealth, purchases |
| Fully funded emergency fund amount | $10,000-$15,000 |
| Total number of baby steps | 7 |
| A collection of money from different investors, which is used to purchase stocks, bonds, or other investments, and is managed by a fund manager | Mutual Fund |
| Long-term investments properly diversified include the following mutual funds | growth, growth and income, international, aggressive growth |
| The risk return ratio says | When the risk goes up, the return generally will go up. |
| The KISS rule of investing teaches | Keep things simple and never buy something you don’t understand. |
| Ownership in a company | Share of stock |
| Riskiest mutual fund investment of the 4 you should have in your portfolio | Agressive Growth |
| Baby Step 1 | Emergency fund |
| Baby Step 2 | Payoff debt |
| Baby Step 3 | 3-6 months expenses in emergency fund |
| Baby Step 4 | Invest 15% of income |
| Baby Step 5 | College fund |
| Baby Step 6 | Pay off house |
| Baby Step 7 | Build wealth and give |
