Match the following words to its correct definition. 1.
Mutual fund

2.
401(k)

3.
Bond

4.
Retirement

5.
Inflation

6.
Pension

7.
Investment

8.
Dividend

9.
Rate of Return

10.
403(b)

11.
Rule of 72

12.
IRA

13.
Stock Market

14.
Roth IRA

15.
Social Security
a.
Quick and easy way to estimate how long it will take for you to double your money
b.
Distributions of property a corporation pays you because you own stock in that corporation
c.
Collection of financial securities (stocks, bonds, cash) that is managed by a company or a person on behalf of many investors
d.
Investment in which you are loaning money for a certain time period to the issuer
e.
An exchange where security trading is conducted by professional stockbrokers
f.
The amount of money you make on an investment in relation to the amount of time your money is invested stated as an annual percentage
g.
General and progressive increase in prices
h.
An arrangement to provide income to people when they are no longer earning income.
i.
The age at which someone stops working permanently
j.
Supplemental retirement system in the United States
k.
Individual Retirement Account
l.
Individual retirement account in which a person can set aside after-tax income up to a specified amount each year, earnings are tax-free, and tax-free withdrawals may be made after age 591/2
m.
Type of tax-qualified deferred compensation plan in which an employee can elect to have the employer contribute a portion of his or her cash wages to the plan on a pretax basis
n.
Retirement plan for certain employees of public schools, employees of certain tax-exempt organizations, and certain ministers
o.
Asset purchased for profit
2.
How can one prepare for retirement to prevent worrying about living in poverty once one hits retirement age.

3.
What are some factors to consider when creating a retirement plan? Explain.

4.
If your money market account earns 3% interest each year, about how long would it take for your account to double? What is the name of the quick and easy way to estimate how long it will take for you to double your money?

5.
What type of investments should you choose if you are not very financially risky?

6.
Give two differences between a Traditional IRA and a Roth IRA

7.
List two facts about 401(k) plans.

8.
How do mutual funds reduce risk?
They invest in stocks
They provide investment diversification
They use an investment manager
None of the above
9.
How is Social Security calculated?
Your age
Amount of years worked
Wages you earned
All of the above
10.
Based on what you learned, how do most people plan to use their Social Security income in the future?
As supplemental retirement income
As their only retirement income
They plan to start collecting at 56
All of the above