Questions?
How well do you understand personal finance? The following brief quiz can help you gauge your knowledge of a few basics. In the answer section, you'll find details to help you learn more.
1. How much should you set aside in liquid, low-risk savings in case of emergencies?
a. One to three months' worth of expenses
b. Three to six months' worth of expenses
c. Six to 12 months' worth of expenses
d. It depends 2. Diversification *
2. Diversification can eliminate risk from your portfolio.
a. True
b. False *
3. Which of the following is a key benefit of a 401(k) plan?
a. You can withdraw money at any time for needs such as the purchase of a new car.
b. The plan allows you to avoid paying taxes on a portion of your compensation.
c. You may be eligible for an employer match, which is essentially getting free money. *
d. None of the above
4. Some, but not all, of the money in a bank or credit union account is protected.
a. True *
b. False
5. Which of the following is typically the best way to pursue your long-term goals?
a. Investing as conservatively as possible to minimize the chance of loss
b. Investing equal amounts in stocks, bonds, and cash investments
c. Investing 100% of your money in stocks
d. Not enough information to decide *
6. In debt speak, what does APR stand for?
a. Actual percentage rate
b. Annual personal rate
c. Annual percentage rate *
d. Actual personal return
7. Mutual funds are the safest types of investments.
a. True
b. False *
8. I have plenty of time to save for retirement. I don't have to concern myself with that right now.
a. True
b. False *
9. What is/are the benefit(s) of a Roth IRA?
a. A Roth IRA can provide tax-free income in retirement. *
b. Investors can take a tax deduction for their Roth IRA contributions.
c. Investors can make tax-free withdrawals after a five-year holding period for any reason.
d. All of the above
10. What is considered a good credit score?
a. 85 or above
b. 500 or above
c. B or above
d. 700 or above *
The answers to these questions are on the website, all new or returning members will receive a free financial review and consultation for the month of March; brendabellllc.com
A member FINRA / SIPC. Mortgage and estate trust services offered through Independent Capital Management, Inc. which is not affiliated with SagePoint Financial. Broadridge Investor Communication Solutions, Inc. does not provide investment, tax, or legal advice. The information presented here is not specific to any individual's personal circumstances. To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances. These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable—we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.
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