Strategy 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.
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.
3.
Automatic withdrawal amounts from one account to another are made on a predetermined basis.
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True. Withdrawals are set up for the same day each month or week.
4.
Which of the following can be sources of extra money with which to start funding an automatic investment plan?
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All of the above. All of these ideas can work.
5.
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.