7.5 - Types of Retiement Investments

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

• Traditional IRA

• Pension

• 401(k)

• Social security

A 401(k) plan is a ________

• special type of business plan

• bank account specifically for entrepreneurs

• benefit for workers making $401,000 or less

• benefit that helps workers invest for retirement

About how much more does money grow when it’s invested rather than deposited in a traditional savings account?

• About 10 times more

• About 50 times more

• About 100 times more

• About 500 times more

How can you invest for retirement if your employer does not offer a 401(k) plan?

• You simply wouldn’t be able to invest

• Open a 401(k) from a relative’s employer

• Open an Individual Retirement Account

• Open a 501(c)(3) instead

How much of your income do experts recommend investing in a 401(k) account?

• 5%

• 7%

• 10%

• 12%

What are two significant advantages of a 401(k) over an IRA?

• You can get free money through an employer match and you can contribute more per year.

• You can get free money through an employer match and can get a 401K without an employer

• You can use the $ sooner with 401K and you can contribute more per year.

• There are no advantages.