Strategy Beginner: Automatic Savings and Investment Plans

Test your knowledge

Choose wisely. There is only one correct answer to each question.

0%
Keep studying!
Review your answers below to learn more.
1.
A good way to determine how well you can afford to participate in an automatic savings plan is to find out where you are spending money needlessly in your budget.
Choose wisely. There is only one correct answer.
True. This can become a new source of funds for you.
2.
Automatic withdrawals from an existing savings account can be used to fund _______.
Choose wisely. There is only one correct answer.
All of the above. Automatic investing can build up your investments for you.
3.
With an automatic savings or investment plan, funds are typically transferred to the target account on the same day each week or month.
Choose wisely. There is only one correct answer.
True. That regularity is important for the plan to work.
4.
Investments high in risk can be ideal for retirement plans funded by automatic investment plans because _______.
Choose wisely. There is only one correct answer.
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.
5.
Savings accounts can be ideal candidates for automatic investing plans _______.
Choose wisely. There is only one correct answer.
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.