Investment Strategies

What are the main rules of writing a will? Check all that apply.

-In most states, you must be eighteen or older. -The document must clearly state that it is your will -A will must be written in sound judgement and mental capacity. -An executor must be named to oversee the distribution of the estate.

What are the benefits of naming a secondary beneficiary in a will? Check all that apply.

-It could prevent a will from going into probate. -It avoids confusion if the primary beneficiary dies first. -It allows for another option if the primary beneficiary cannot inherit.

Which statements are true regarding an individual retirement account? Check all that apply.

-People can contribute to the account until retirement age. -Contributions to the account are limited each year. -Contributions can be deducted from federal taxes.

Which are common mistakes people make when investing? Check all they apply.

-They put all of their money into one kind of investment at a time. -They invest more money than they can afford. -They focus heavily on familiar investment opportunities. -They hold onto investments longer than they should to recoup losses.

What are the responsibilities of an executor? Check all that apply.

-paying any taxes that are due on the estate -taking inventory of the property and belongings -appraising and distributing the deceased person's assets -settling any debts that are owed by the deceased

A declination is filed by a(n) ___1___ when he or she ___2___. When this occurs, a contingent ___3___ takes over the responsibilitie

1.) EXECUTOR 2.) DOES NOT WANT TO SERVE 3.) EXECUTOR

Based on the graphic, what advantage does this 401k have over other types of investments?

It incentivizes employees to contribute by offering an employer match.

How is a 401k different from an individual retirement account (IRA)?

NOT A 401k is a good long-term investment strategy.

William is not generally a risk-taker, but he knows he may need to step out of his comfort zone to make enough money for retirement.

NOT a savings account NOT a US savings bond

Which investment has the least liquidity?

NOT a savings account NOT property

Who regulates markets where investments are traded?

NOT corporate entities NOT individual investors

Analyzing the likelihood of the economy changing is part of understanding the of an investment.

RISKS

Which investment advice would Gayle most likely give to Alex?

Spread your investments in several different areas.

Which investor is making a common error?

an employee of a popular hardware store who invests only in that company's stock

A couple has decided to increase their income from investments for when they retire in twenty years. Which is the best way they can accomplish that goal?

by enrolling in a 401k and investing in the stock market

An investment with more liquidity would be ideal for someone who

knows they will need cash in the near future.

People who make money investing in the stock market

must pay taxes on profits.

Which is a commodity someone might invest in?

natural resources

What is the role of an executor in estate planning?

settling the estate according to what the deceased person wants

Money that has been spent and cannot be recovered is known as costs.

sunk

What is the purpose of making an estate plan?

to protect property for distribution after death