Strategy Beginner: Automatic Savings and Investment Plans

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1.
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.
2.
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.
3.
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.
4.
An advantage of using an automatic investment plan to fund a retirement account is that it can benefit from compounded earnings as it grows.
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True. Most retirement plans benefit from compounded growth of earnings.
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.