Strategy Beginner: Automatic Savings and Investment Plans

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1.
An automatic savings plan withdraws money from an existing savings or checking account on a periodic basis and deposits it into another account.
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True. The period is usually monthly or weekly.
2.
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.
3.
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.
4.
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.
5.
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.