Investment Bell Ringer 11

Front

401(k)s and IRAs are both…

Back

Investment accounts that you can open to help you invest for retirement

Front

All of the following are advantages of a 401(k), EXCEPT…
You don’t pay taxes on your investments’ growth each year
You can invest your 401(k) into a wider variety of asset types than you can with an IRA
Your employer may match some of your 401(k) contributions
You can contribute more money into a 401(k) than into an IRA

Back

You can invest your 401(k) into a wider variety of asset types than you can with an IRA

Front

Which type of retirement account is an investment option for ANY young person?

Back

Traditional IRA

Front

What should Katrina do with her $150 per month available to save for retirement if her company offers a 401(k) match for up to 3% of her salary ($65,000 per year)?

Back

Contribute the full $150/mo to the 401(k) because her company will match that full amount, "doubling" her investment every month.

Front

Why might a target date fund (TDF) be a good option for Sam?

Back

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

Front

What is one question an investor should ask when deciding whether or not they would like to open a Roth IRA or a Traditional IRA?

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Do I want to pay taxes now or later?