chapter 4 mor Flashcards
1
Q
3 types of savings accounts that are safe investments
A
emregency
retirement
CD
2
Q
shoudl you use CD for an emergency savings, retirement, or neither
A
they cannot be used fo remrgencyh savings and can only be used for retirement savings
3
Q
3 + aspects of livings in a Roth IRA
A
- tax-free investment
- invested at a bank/cu for a fixed rate
- liquid
4
Q
one + and one - of US savings bonds
A
positive: interest rate doubles $ after 20 yrs
negative: not liquid, no emergency savings
5
Q
difference between investing in a mutual fund and investing directly into stocks
A
MF: give money to people to invest into the market for you
Stocks: high risk, do it yourself
