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Basics Beginner: Automatic Savings and Investment Plans

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1.
An advantage of using an automatic investment plan to fund a retirement account is that it can benefit from compounded earnings as it grows.
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True. Most retirement plans benefit from compounded growth of earnings.
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.
With an automatic savings or investment plan, funds are typically transferred to the target account on the same day each week or month.
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True. That regularity is important for the plan to work.
4.
Automated transfers of money between two accounts require that those accounts be from two different institutions.
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False. You can set up an automated transfer between two accounts at the same institution.
5.
Savings accounts can be ideal candidates for automatic investing plans _______.
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For either the short term or the long term. They are ideal for the risk averse, over either the short term or the long term.