Choose wisely. There is only one correct answer to each question.
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1.
What's the minimum amount you should try to invest in your 401(k) plan?
At least enough to get the employer match. Some people may not be able to contribute the maximum each year. But at least contribute enough to get the full employer match. That's free money.
2.
How do you invest in a 401(k) plan?
Your employer automatically deducts your contribution from your pay. Investing in a 401(k) plan is automatic; your employer deducts your contribution from your pay. And although your employer may match all or part of your contribution, you need to contribute some of your salary to your 401(k) to receive an employer match.
3.
Your 401(k) plan's retirement planning tools will analyze _______.
All of the above. These are typical factors that a program will look at.
4.
Which of the following would your 401(k)'s plan document not tell you?
How much your 401(k) will earn. The plan document has no way to know this.
5.
How should you choose from among your 401(k) plan options?
Choose options that will allow you to reach your financial goal. For some investors, that may mean stock funds only. For others, it may mean investing in bonds and cash options, too.
