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Basics Beginner: Automatic Savings and Investment Plans

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1.
Using an automatic investment plan to fund a retirement account is only for the young.
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False. Even later in life, you can still build up a sizable amount of money.
2.
Automatic savings and investment plans are often used to fund _______.
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All of the above. These are the most common uses for automatic plans.
3.
Automatic withdrawal amounts from one account to another are made on a predetermined basis.
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True. Withdrawals are set up for the same day each month or week.
4.
An automatic savings plan withdraws money from an existing savings or checking account on a periodic basis and deposits it into another account.
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True. The period is usually monthly or weekly.
5.
Some certificates of deposit accept additional deposits.
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True. Add-on certificates allow them, which makes them ideal for some peoples automatic investing plans.