Strategy Beginner: Automatic Savings and Investment Plans

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1.
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.
2.
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.
3.
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.
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.
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.