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Basics Beginner: Automatic Savings and Investment Plans

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1.
Regular purchases of stock with money taken out of an existing account are an example of an _______.
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Automatic investment plan. In this case, money is going toward buying investments.
2.
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.
3.
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.
4.
Automatic withdrawals from an existing savings account can be used to fund _______.
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All of the above. Automatic investing can build up your investments for you.
5.
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.