Investing Test review Flashcards
(15 cards)
A government bond has the ____ risk
least
Social Security is a government program that pools ______ from current workers to then provide retirement support benefits to those who are eligible
contributions
Which is not an advantage to saving money in a 401(k)
You can withdraw money at any time without paying a penalty
Pension plan
depends on how long you work/earn for
A TDF will ________ adjust his asset allocation based on the retirement year he has chosen
automatically
Aleah is 19 and wants to get a head start on investing and opens a brokerage account. All of the following are benefits of doing so EXCEPT…
Any realized gains would be exempt from capital gains tax
If a person would like to avoid having their investment earnings taxed at the same rate as their marginal income tax, they should…
Wait at least 12 months to sell the investment
A fund that adjusts its portfolio over time, based on when you plan to retire.
TDF
The broad category describes any collective investment that pools money from different investors to buy a variety of securities.
Mutual Fund
This describes an investing strategy where you pay a fund manager to try to beat the market.
Active Investing
A fund that tries to match the returns of a specific market or market section.
Index Fund
This describes an investing strategy where you do not try to beat the market, you make few trades, and you take advantage of low fees.
Passive Investing
A fund with shares that can be traded on the market throughout the day, like stocks
ETF
ETF differ from Mutual in that:
ETFs can be traded throughout the day while actively managed mutual funds cannot
Not true of Passively Managed funds:
Passively managed funds are managed by a fund manager
