Q.1) Since 1929, how many market crashes have there been in which the Dow Jones Industrial Average took at least 16 years to return to pre-crash levels?
Q.2) What percentage of mutual funds, financial experts, and investment advisory services under perform the overall market and comparable indexes?
Q.3) How much of the value of your savings will be consumed over the next 35 years, if you pay fees of 1% per year and your returns average 7% per year?
Q.4) The top-performing mutual fund for the decade ending December 31, 2009, enjoyed an 18% annual return. What annual return did the fund’s typical investors actually receive?
Q.5) If you own a $20 stock and it goes up by 40%, how much money did you make on that stock?
Q.6) The Pension Protection Act of 2006, passed by Congress, is about 401(k) retirement plans. Who does this law protect?
Q.7) If someone had made a $10,000 investment in gold in 1802, how much would that investment have been worth in 2008 (206 years later), after adjusting for inflation?
Q.8) Investors are often advised to invest in asset allocation mutual funds, which spread your money among a blend of equities and fixed-income funds. In theory, this reduces the risk of loss. What annual return did the average investor in asset allocation funds realize over the last 30 years?
Q.9) Many people today say they’ll just keep working to make up for their retirement savings shortfall. But that may not always be an option. What portion of current retirees were forced out of work earlier than they planned?
Q.10) If you take distributions from a 401(k), IRA, or other tax-deferred retirement plan before you’re 59½, in most cases you’ll pay:
Q.11) In a tax-deferred government-approved retirement account, such as a 401(k) plan or an IRA, when must you start taking required minimum distributions (RMDs) and paying taxes on the distributions?
Q.12) Many 401(k) plans allow workers to take loans up to certain limits from their accounts during their employment. If you lose your job or leave the company for any reason, how soon must you pay back your loan (plus interest), in order to avoid owing income taxes plus a 10% penalty?
Note: Government-sponsored retirement plans have more strings attached to them than a puppet. Your money is essentially in prison
Q.13) One of the biggest appeals of 401(k) plans and IRAs is that they let you defer paying income tax on the money you place in them. How much can you expect to save by deferring the tax?
Q.14) What is the difference between saving and investing?
Q.15) What is the definition of a liquid asset?
Q.16) If you pay cash for a $25,000 car (meaning you pay for it up front, and you don’t make payments to a finance or leasing company), what is your actual cost to purchase the car?
Q.17) What return on investment do you receive on the payments of principal you make into your home as you pay down your mortgage?
Q.18) How much money will a typical 65-year-old couple retiring today need to cover out-of-pocket health care costs during their lifetimes?
Q.19) At least 70% of people over 65 will require long-term care services at some point, and 40% will need nursing home care, according to the U.S. Department of Health and Human Services. Based on the length of an average nursing home stay, how much money will you need to cover a typical stay in a nursing home?
Q.20) According to the Social Security Administration, what percentage of people turning 65 today will live past age 90?
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