business

which of the following is a characteristic of a brokerage account?

no penalties for withdrawing your money

all of the following are common investing strategies except

New York Stock Exchange

sam is 22, just started his first full-time job, and is selecting his investments through his company's 401(k) plan. when might a target date fund (TDF) be a good option for sam?

a TDF will automatically adjust his asset allocation based on the retirement year he has chosen.

which of the following describes a roth IRA

a retirement account anyone can open that you fund with money that you've already paid taxes on, so it grows tax-free

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.

capital gains taxes

are taxed differently depending on if you sell them before or after holding them for 12 months

which of the following explains why risk is not always bad when it comes to investing?

as risk increases, so does the possibility of greater return

exchange traded funds...

can be traded throughout the day.

tracie is new to investing and is going to use an app that offers trades with zero fees. after opening her account, tracie should first...

conduct research on the investments she's interested in

all of the following are best practices to use when evaluating a moble investing app except...

create an account first, then conduct research on the company behind the app

in retirement, it's common to rely on income from all of the following sources except...

government loan

which of the following is true about pension plans?

how much an employee gets from a pension depends on how long they've worked for the employer and how much they earn.

ben is 24 and wants to start saving for retirement. what can he do to set himself up for success?

invest 10-15% of his monthly salary.

which of the following is true about investing?

it can help you grow your money through the power of compounding.

investors report this as being one of the biggest downfalls of robo-advisors

lack of personal touch

which of the following is an advantage of using a robo-advisor compared to hiring most fictional advisors

lower fees

which of the following statements is true about the state of retirement in the U.S.?

many people may need to invest to build wealth and to support themselves in retirement

Sanjana is explaining what social security is to her younger brother. which of the following descriptions should she use?

social security is a government program that pools contributions from current workers to then provide retirement support benefits to those who are eligible.

who would benefit the most from investing in a roth IRA rather than another type of retirement account?

someone who is young and expects to earn money later in life, so they'll be at a higher tax bracket then.

eli is planning ahead for retirement. they should consider all of the following factors when determining how much they'll need in retirement except...

the current balance in their checking account

which type of retirement account is an investment option for any oung person entering the full-time workforce

traditional IRA

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.

all of the following are advantages of a 401(k), except

you can invest your 401(k) into a wider variety of asset types then you could with an IRA.

all of the following are advantages of saving for retirement in a 401(K), except...

you can withdraw money at any time without paying a penalty.

our investor profile is a snapshot of what kind of investor you are and takes into account

your time horizon and risk tolerance