Choose wisely. There is only one correct answer to each question.
0%
Keep studying!
Review your answers below to learn more.
1.
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.
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.
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.
5.
Your 401(k) plan has a legal limit to how much you can contribute. However, some plans have a lower ceiling, which is based on _______.
A percentage of your salary. This is typically a low percentage that can still add up nicely.
