FINAL EXAM

 FAMILY UPDATE

During my Mom's time in Sarasota, she went fishing for the first time in her life. She had never dipped a pole into the water, much less catch a fish. All that changed when she hooked a giant grouper (picture below).
It was enough fish to feed us the entire weekend (kidding). Even though she had such a good experience she doesn't really have any interest in doing it again.

I keep getting requests for cat pictures so I added one below.

This week I’m going to test your memory and your smarts. Only of few of you will know all the answers (let me know if you get 100%). Are you up to the challenge? Good luck.

Note: I tried to put the answers under each question but I don’t want you to cheat. So under each question, you will see a string of letters like this: abccdba. The THIRD letter is the correct answer (“c” in this example).

1. What is a mutual fund?

A. An individual stock.
B. A vehicle that contains lots of stocks and bonds all in one place.
C. A way beneficiaries get around the law to change who gets the money.
D. A stock that you “mutually” agree on with a financial advisor.

Answer: babcbdab

2. What is the stock market's average return over the past 20, 50, and 100 years? (They are all around the same number)

A. 10%
B. 6%
C. 4%
D. 2%

Ebadcba

3. Buying marijuana stocks and bitcoin is:

A. safe
B. speculative
C. gambling
D. A good idea for most people

Ccbbcda

4. Once on Medicare, what is the maximum out-of-pocket cost you could pay for medical expenses in any given year?

A. $30,000,000
B. $10,500
C. $6,700
D. There is no limit.

Ddcdabca

5. The life expectancy for a healthy 65-year-old is:

A. 80
B. 85
C. 90
D. 95

Abccdba

6. Social Security will have a cost of living increase next year of:

A. 3.1%
B. 5.9%
C. 0%
D. 8.7%

Dbddbadba

7. Which investment is the most volatile?

A. A single bond
B. A single stock
C. A bond mutual fund
D. A stock mutual fund

Adbdatry

8. How do taxes work on Roth IRAs?

A. You get a tax deduction when you add money and then a tax deduction when you take the money out.
B. You don’t get a tax break upfront and you have to pay taxes when you take the money out.
C. You don’t get a tax break but can take the money out tax-free.
D. You get a tax deduction but when you take the money out you have to pay income taxes.

Aacabda

9. How do taxes work on 401ks and IRAs?

A. You get a tax deduction when you add money and then a tax deduction when you take the money out.
B. You don’t get a tax break. You have to pay taxes when you take the money out.
C. You don’t get a tax break but you can take the money out tax-free.
D. You get a tax deduction upfront but when you take the money out you have to pay income taxes.

Ddddecba

10. When are you required to start taking money from your IRA?

A. 59 ½
B. 65
C. 72
D. 75

Cacdadca

11. What is the most important variable for your retirement finances?

A. The amount in your 401k
B. Whether or not you have a mortgage
C. Have much you have in the bank
D. Your budget

Dcdadcz

12. How much money can you take with you when you die?

A. $1000
B. $150,000
C. $350,000
D. $0

Ddddacbc

13. If Mr. Smith is getting $2000/mo from Social Security and Mrs. Smith is getting $1400, what happens to Mrs. Smith’s benefit if Mr. Smith dies?

A. She starts getting $2000/mo
B. She keeps getting $1400/mo
C. She gets to add them and get $3400/mo
D. She stops getting Social Security altogether.

Adacads

14. Day trading is a good idea if…

A. You have time to pay attention to the markets.
B. You have the expertise.
C. Never. It’s almost always a loser in the long term
D. You have fancy software you bought off the internet for $1500.

Adcdaba

15. If you invested $100,000 in the stock market from 1979 to 1999, what would it have grown to?

A. $223,500
B. $150,700
C. $1,840,000
D. $940,300

abcdea

16. Buying gold from a commercial on cable TV is:

A. A borderline scam.
B. Good for people looking for a conservative investment.
C. A good idea is today's economic climate.
D. A bad idea for most people.

aaacedjg

17. If you invest in a diversified portfolio of stocks and bonds with at least half of the money in stocks- what is a reasonable amount of money to take from the account each year?

A. 5%
B. 2%
C. 8%
D. 3%

Dbabdacz

18. What percentage of the country dies with more money than ever?

A. 10%
B. 20%
C. 30%
D. 50%

Cdcbea

19. On average, how much money do 75-year-olds spend, compared to those aged 60?

A. 40% less
B. 20% more
C. 10% less
D. 30% more

Bbabdadlkj

20. What is my favorite ice cream flavor?

A. Vanilla
B. Chocolate
C. Mint Chocolate Chip
D. Cookie Dough

Dbbdbadba

How did you do? As for myself, I got 100%, but I made the quiz.

Be Blessed,

Dave