Personal Finance Chap 3

Question 1

Baby step one

Answer 1

1000 in the bank

Question 2

Baby step two

Answer 2

Debt snowball

Question 3

Baby step 3

Answer 3

3-6 months of expenses

Question 4

Baby step 4

Answer 4

15% of your household income into Roth iras and pre retirement plans

Question 5

Invest ____% of your household income into Roth IRAS and pre tax retirement plans

Answer 5

15

Question 6

Tax favored means that the investment is in a

Answer 6

Qualified plan or has a special tax treatment

Question 7

IRA means

Answer 7

Individual retirement arrangements

Question 8

SEPP means

Answer 8

Simplified employee pension plan

Question 9

When it comes to an ira, everyone with an ______ income is eligibility

Answer 9

Earned

Question 10

The max annual contribution for income earners is _______

Answer 10

5000 now 6000

Question 11

Ira is not a type of ________ at a bank. It is the ______ ________ on virtually any type of investment

Answer 11

Investment

Tax treatment

Question 12

The Roth IRA is an _____ tax Ira that grows tax _____

Answer 12

After

Free

Question 13

The Roth IRA has more _______

Answer 13

Choices

Question 14

Roth IRA has Higher ______ at retirement

Answer 14

Income

Question 15

There are no taxes when you first cash it out, so it forces you to _______ more

Roth ira

Answer 15

Invest

Question 16

Roth IRA has tons of ________

Answer 16

Flexibility

Question 17

A _____ employed person may deduct up to ____% of their net profit on the business by investing in a _______

Answer 17

Self
15%
SEPP

Question 18

Most companies have done away with _____ plans

Answer 18

Pension

Question 19

Pension plans have been replaced by what two types of plans

Answer 19

Self funded and matching type plans like a 401k

Question 20

A 401 k is _____

Answer 20

Yours

Question 21

A 403b is found in ___________ organizations like churches, hospitals. And schools

Answer 21

Non profit

Question 22

The 457 is ______ compensation, usually for who?

Answer 22

Deferred

Gov employees

Question 23

Do not use _________ investment contract or ______ funds to fund your plan

Answer 23

Guaranteed

Bond

Question 24

You should be funding your plan whether your company ________ it or not

Answer 24

Matches

Question 25

You should always ______ over retirement plans to an ______ when you leave the company

Answer 25

Roll

Ira

Question 26

Don’t bring money home instead move it straight into an ira by a ______. _______

Answer 26

Direct transfer

Question 27

Roll to a Roth only if

1. You have over ______ by 65
2. You can afford to pay the _____ separately not an ira
3. You understand all ____ will become due on the rollover amount

Answer 27

1. 700,000
2. Taxes
3. Taxes

Question 28

Never ________ on your retirement plan

Answer 28

Borrow

Question 29

Fund 401k or other employer plan up to the _____

Answer 29

Match

Question 30

Above the match, fund _____ iras, if there is no match then start with Roth IRAs

Answer 30

Roth

Question 31

Complete 15% of income by going back to your _______ or other company plans

Answer 31

401k

Question 32

Never buy a plan that
1.
2.

Answer 32

Freezes your options

Automatically changes your investments based on the age of the kid

Question 33

Move to an ____ or an ____ plan

Answer 33

UTMA

UGMA

Question 34

UGMA and utma are _____ as good as othe rplans

Answer 34

Not

Question 35

UTMA and UGMA stands for

Answer 35

Uniform transfer gift to minor act

Question 36

Never save for college using _______

Answer 36

Insurance

Question 37

Never save for college using _______ bonds

Answer 37

Savings

Question 38

Never save for college using _______ tuition

Answer 38

Pre paid