Beginning Investing

What is one of the best ways to see solid returns on your money according to the guide?

• Buying lottery tickets

• Keeping money under the mattress

• Saving in a high-yield savings account

• Investing early

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What allows your account balance to snowball over time?

• Credit card rewards

• Checking account interest

• Compound earnings

• Annual fees

What type of investment account can you withdraw from at any time without additional taxes or penalties?

• 401(k)

• Roth IRA

• Traditional IRA

• Taxable brokerage account

What should you aim to invest each year for retirement?

• 30% to 35% of your income

• 20% to 25% of your income

• 10% to 15% of your income

• 5% to 10% of your income

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What is a common investment goal mentioned in the guide?

• Winning a poker tournament

• Buying a luxury yacht

• Collecting rare art

• Retirement

What type of funds are recommended for most people due to their low cost?

• Stock mutual funds, index funds, or ETFs

• Hedge funds

• Private equity funds

• Money market funds

What is a bond?

• A type of insurance policy

• A type of stock

• A loan to a company or government entity

• A mutual fund

What should make up only a small part of a long-term investment portfolio?

• Stocks

• Cryptocurrency

• Real estate

• Bonds

What is an ETF?

• A high-interest loan

• A type of currency

• A bundle of investments that trades like a stock

• An exclusive investment club

What is the first milestone for investing if your employer offers a 401(k) with matching dollars?

• Buying individual stocks

• Opening a high-yield savings account

• Contributing enough to earn the full match

• Investing in real estate