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30 Cards in this Set
- Front
- Back
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Comping interest |
Reinvesting earned interest |
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Simple interesr |
Taking out earned interest |
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Mutual funds |
A group of stocks •you invest once , your money goes to several places •safer than all your eggs in 1 basket •most popular form of us investing •overseen of professionals |
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What percent of Americans are living paycheck-to-paycheck |
70% |
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80 % or millionaires in america are |
1st generation rich |
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The lottery is a |
Tax in the poor |
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Average car payment |
471$ |
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A new car loses |
10% immediately 20 in 1 year And 70 in 4 years |
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Most large companies offer a |
401k plan |
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Arm |
Adjustable rate mortgage, rate can go up |
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Fixed rate mortgage |
Stays as it is, rate doesn't change |
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Equity |
% of ownership |
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Home equity loan |
A loan against the amount you own on your home |
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Refinance |
Changing the interest rate on the loan |
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Reverse mortgage |
Borrow off of equity monthly |
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What % of your monthly income should be spent on a mortgage ? |
New york times- 35% of gross Dave ramsey- 25% of your net |
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Mutual fund |
Collection of stocks and bonds , company that brings together a group of people invest money in stocks , bonds , securities |
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How you can make money from a mutual fund |
1) income earned from dividend on stocks 2)fund sells securities that have intended in price = capital gain 3)fund holdings increase |
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Advantages of mutual fund |
Professional management Diversification Economies of scale Liquidity (can be turned in cash) Simplicity |
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Disadvantages of mutual funds |
Professional management Costs Dilution ( to much diversification ) Taxes |
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Ira |
Individual retirement account |
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You won't pay taxes on 401k money until... |
You withdrawl it, you will pay a stiff penalty if you withdraw before 59 1/2 |
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Biggest problem of mutual fund |
The costs |
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401k is names aftwr |
Us tax code |
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Debt is a |
Product |
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How many credit card offers per year |
6 billion |
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Debt snowball |
Pay smallest bill first , use paid off bills to pay off next largest |
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52% of America marriages end |
In divorce , those either 7 Yeats 90% say money was problematic |
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Bleh |
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Best option for mortgage |
15 years , big big down payment , but higher monthly payments |
