Personal Finance Exam Flashcards
What is a retirement plan run through employers?
401(k)
When can you begin to withdrawal money from your 401(k) account?
When you reach the age of 59.5
When do you have to begin withdrawing money from your 401(k) account?
When you reach the age of 70.5
How much can you contribute per year to a 401(k)? What if you are over 50?
$17,500 if under 50
$17,500+$5,500 if over 50
What is a bond issued by corporations?
Corporate Bond
What is a bond issued by state or local governments?
Municipal Bond
What is a bond issued by the government of the United States?
US Savings Bond
What are the three C’s of credit?
Capacity, Capital, Character
In what year was the CARD Act passed?
2009
What was the purpose of the CARD Act?
To require banks to fully disclose details about credit plans
What is a timed deposit of money into a bank?
Certificate of Deposit
What is the maximum amount of money someone can spend while using a credit card?
Credit Limit
What are the five foundations to saving?
1) Save $500 Emergency Fund
2) Get out of debt
3) Pay cash for your car
4) Pay cash for college
5) Build wealth and give
What is the calculation for finding the debt to income ratio?
debt/income
What is dollar cost averaging?
Setting aside a set amount of money each month in an effort to save
