Strategy Beginner: Automatic Savings and Investment Plans

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1.
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.
2.
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.
3.
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.
4.
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.
5.
If you are averse to risk and you want to save money for a purchase three months from now, why would a savings account be a good choice to put your money into?
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It has a low risk of loss. This may make it an ideal choice.