Dave Ramsey Finance: Chapter 3

Front 1

Pre-Tax means the government allows you to invest money after taxes are taken out.

Back 1

False, before.
Hint; PRE

Front 2

ESA's are a good way to save for college

Back 2

True.

Front 3

Once you have a fully funded emergency fund put 10% of your income into retirement plans.

Back 3

False. put 15% of your income into retirement plans.

Front 4

457 plans are designed for employees of non profit organizations such as hospitals and schools

Back 4

False. 403 (b)

Front 5

If we used a race analogy to describe building wealth, it would be most like a marathon.

Back 5

True.

Front 6

A retirement plan for self employed people.

Back 6

SEPP

Front 7

A deferred compensation plan.

Back 7

457

Front 8

Typical retirement plan for most companies.

Back 8

401(k)

Front 9

Retirement plan found in non-profit groups like schools and hospitals.

Back 9

403(b)

Front 10

Save for college 1st by using this type of account:

Back 10

Educational Savings Account (ESA)

Front 11

Used after you maxed out your ESA.

Back 11

UTMA

Front 12

Movement of tax-differed retirement money from one plan to another.

Back 12

Rollover.

Front 13

Invest 15% of income into retirement.

Back 13

Baby step 4

Front 14

Manager of a childs UTMA account untill he or she reaches age 21

Back 14

Custodian

Front 15

College funding

Back 15

Baby step 5

Front 16

Jason works for a company that matches his 401k contribution up to 5%. He maximizes his amount to 200/month at the end of the year how much money will be in his account?

Back 16

4,800$

Front 17

What definition best explains an ira?

Back 17

Tax treatment on virtually any type of investment.

Front 18

The primary difference between the roth ira and traditional ira.

Back 18

Roth ira's grows tax free.

Front 19

When are you not able to make a tax free withdrawal from your roth ira?

Back 19

When changing careers / temporary drop of income.

Front 20

what is best for retirement when you leave a company?

Back 20

Direct transfer into ira.

Front 21

if you have 3000$ invested in a roth ira, what is true about your contribution?

Back 21

You already paid taxes, so itll grow tax free.

Front 22

What is a good way to save for college?

Back 22

Esa.

Front 23

Using the rule of 72, how long will it take your money to double at a 12% interest?

Back 23

6 years.

Front 24

When looking for a financial counselor to help you with your investments, always go with:

Back 24

A counselor with the heart of a teacher who explains everything to you.

Front 25

What does baby step 5 say about saving money for your children college.

Back 25

use tax favored plans.