Investment Alternatives and Retirement Flashcards
1
Q
What is the best measure of the combined fees charged annually by a mutual fund?
A
Expense Ratio
2
Q
What is the primary advantage of investing in a stock mutual fund rather than individual stocks?
A
Diversification
3
Q
Proceeds from a mutual fund investment will go to an heir without going through probate when what is used?
A
Beneficiary Designation
4
Q
Why are certain investment alternatives categorized as speculative or high-risk?
A
When there is a potential for significant fluctuations in returns over a short period of time
5
Q
A contract made with an insurance company that provides a series of payments in retirement.
A
Annuity
6
Q
A testamentary trust becomes effective upon death of grantor. True or False
A
True
7
Q
Steve died without a will which means he died____
A
intestate
