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 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.
3.
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.
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.
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.