Strategy Beginner: Automatic Savings and Investment Plans

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1.
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.
2.
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.
3.
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.
4.
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.
5.
Investments high in risk can be ideal for retirement plans funded by automatic investment plans because _______.
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The ups and downs in the market can smooth out over the course of years, leading to growth. Though there are no guarantees, historically the market's ups and down have done this.