Strategy Beginner: Saving for Short, Mid and Long-Term Goals

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1.
When establishing a mid-term savings goal, you must be able to save all the money you need to achieve that goal.
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False. When establishing a mid-term savings goal, you can save all or part of the money you need to reach that goal.
2.
Different types of goals can be met with different savings vehicles.
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True. Different types of goals can be met with different savings vehicles.
3.
One type of mid-term savings vehicle you can use to meet a mid-term savings goal is a(n) _______.
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Balanced mutual fund. You can use this to meet a mid-term savings goal.
4.
To fully fund an emergency fund, you need to save at least _______ months of living expenses.
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Three to six. To fully fund an emergency fund, you need to save at least this much -- some advisors suggest even more.
5.
One long-term tool that employers offer to help save for retirement in a systematic way is a _______.
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401(k) plan. One long-term tool that employers offer to employees to help them save for retirement in a systematic way is a 401(k) plan.