Strategy Beginner: Automatic Savings and Investment Plans

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1.
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.
2.
Some certificates of deposit accept additional deposits.
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True. Add-on certificates allow them, which makes them ideal for some peoples automatic investing plans.
3.
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.
4.
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.
5.
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.