Strategy Beginner: Automatic Savings and Investment Plans

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1.
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.
2.
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.
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True. This can become a new source of funds for you.
3.
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.
4.
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.
5.
Automatic withdrawals from an existing savings account can be used to fund _______.
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All of the above. Automatic investing can build up your investments for you.