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13 Cards in this Set
- Front
- Back
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WHAT ARE THE 6 STEPS IN LEARNING TO CONTROL YOUR ASSETS?
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1. TAKE AN INVENTORY OF YOUR FINANCIAL ASSETS.
2. KEEP TRACK OF ALL YOUR EXPENSES. 3. PREPARE A BUDGET 4. PAY OFF YOUR DEBTS 5. START SAVINGS PLAN 6. BORROW $$ ONLY TO BUY ASSETS THAT HAVE POTENTIAL TO INCREASE IN VALUE. |
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WHY IS REAL ESTATE A GOOD INVESTMENT? TWO ANSWERS
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1. A HOME IS AN INVESTMENT YOU CAN LIVE IN.
2. ONCE YOU BUY A HOME PAYMENTS ARE RELATIVELY FIXED(RENT RISES QUICKLY) |
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WHAT IS TERM INSURANCE
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THIS TYPE OF INSURANCE IS PURE INSURANCE PROTECTION FOR A GIVEN NUMBER OF YEARS THAT TYPICALLY COSTS LESS THE YOUNGER YOU BUY IT
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WHAT IS WHOLE LIFE INSURANCE?
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LIFE INSURANCE THAT STAYS IN EFFECT UNTIL AGE 100
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WHAT IS VARIABLE LIFE INSURANCE?
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WHOLE LIFE INSURANCE THAT INVESTS THE CASH VALUE OF THE POLICY IN STOCKS OR OTHER HIGHG-YIELDING SECURITIES.
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WHAT IS AN ANNUITY?
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A CONTRACT TO MAKE REGULAR PAYMENTS TO A PERSON FOR LIFE OR FOR A FIXED PERIOD.
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WHAT IS SOCIAL SECURITY?
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THE TERM USED TO DESCRIBE THE OLD-AGE, SURVIVORS, AND DISABILITY INSURANCE PROGRAM ESTABLISHED BY THE SOCIAL SECURITY ACT OF 1935.
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WHAT IS AN IRA?
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INDIVIDUAL RETIREMENT ACCOUNT ~ TRADITIONALLY, A TAX-DEFERRED INVESTMENT PLAN THAT ENABLES YOU (AND YOUR SPOUSE, IF MARRIED) TO SAVE PART OF YOUR INCOME FOR RETIREMENT.
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WHAT IS A SIMPLE IRA?
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FOR COMPANIES WITH 100 OR FEWER EMPLOYEES AND EMPLOYEES CAN CONTRIBUTE UP TO $6000 OF THEIR INCOME ANNUALLY, COMPARED WITH $2000.00 LIMIT OF REGULAR IRA'S.
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WHAT ARE THE BENEFITS OF THE 401(K)?
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1. MONEY YOU PUT IN REDUCES YOUR PRESENT TAXABLE INCOME
2. TAX IS DEFERRED ON THE EARNINGS 3. EMPLOYERS OFTEN MATCH PART OF YOUR DEPOSIT. |
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EXPLAIN KEOGH PLANS?
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IT'S LIKE AN IRA FOR ENTREPRENEURS. THE MAXIMUM THAT CAN BE INVESTED IS $30,000.00 PER YEAR. THE AMOUNT WAS ORIGINALLY MUCH LOWER, BUT THE GOVERNMENT WANTED TO ENCOURAGE SELF-EMPLOYED PEOPLE TO BUILD RETIREMENT FUNDS.
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HOW CAN A PERSON ACCUMULATE ENOUGH CAPITAL TO BECOME FINANCIALLY SECURE?(4 THINGS)
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1. FIND A JOB
2. TRY TO LIVE AS FRUGALLY AS POSSIBLE 3. SAVINGS CAN BE USED TO GENERATE MORE CAPITAL. 4. INVEST THE MONEY WISELY(REAL ESTATE IS A GREAT START) |
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WHERE IS THE BEST PLACE TO KEEP A SAVINGS?
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IT'S BEST TO INVEST IN STOCK EVEN THOUGH THEY TEND TO GO UP AND DOWN. BONDS HAVE NOT TRADITIONALLY BEEN A GOOD INVESTMENT.(IT'S NOT WISE TO KEEP LONG-TERM SAVINGS IN BANKS OR SAVINGS AND LOANS.)
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