Financial Moves for 2025

Why is it important to review your liquid assets before the end of the year?

• To ensure you have enough cash for holiday shopping

• To avoid paying taxes

• To prepare for potential emergencies and future expenses

• To invest in high-risk stocks

What is the benefit of a 401k match from an employer?

• It reduces your taxable income

• It is a form of free money that boosts retirement savings

• It allows you to withdraw funds anytime without penalty

• It guarantees a fixed return on investment

What should you consider when deciding whether to pay off debt or invest?

• The advice of your friends

• The interest rate on your debt compared to potential investment returns

• The number of debts you have

• The color of your credit card

What is a recommended strategy for negotiating bills?

• Pay the bills in advance

• Be polite and inquire about discounts or bundles

• Threaten to switch providers

• Ignore the bills until they are overdue

What is reverse budgeting?

• Spending all your income before saving

• Saving a portion of your income first before spending

• Investing all your income in stocks

• Using credit cards for all expenses

What is considered a good savings goal percentage of gross income?

• 50%

• 20%

• 5%

• 10%

How can tax loss harvesting benefit an investor?

• By eliminating the need to file taxes

• By offsetting gains with losses to reduce taxable income

• By increasing the value of their portfolio

• By allowing unlimited stock purchases

What is a 529 plan used for?

• Starting a new business

• Investing in real estate

• Purchasing a new car

• Saving for a child's education with tax advantages

What is the wash sale rule?

• A rule that prevents repurchasing the same security within 30 days

• A rule that allows immediate repurchase of sold stocks

• A rule that mandates selling all stocks at year-end

• A rule that requires holding stocks for at least a year

What is the primary purpose of setting financial goals for 2025?

• To ensure no money is left unspent

• To spend all savings on luxury items

• To align financial actions with personal values and future plans

• To avoid paying taxes