Strategy Beginner: Automatic Savings and Investment Plans

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1.
Automated transfers of money between two accounts require that those accounts be from two different institutions.
Choose wisely. There is only one correct answer.
False. You can set up an automated transfer between two accounts at the same institution.
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.
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.
Regular purchases of stock with money taken out of an existing account are an example of an _______.
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Automatic investment plan. In this case, money is going toward buying investments.
5.
Some certificates of deposit accept additional deposits.
Choose wisely. There is only one correct answer.
True. Add-on certificates allow them, which makes them ideal for some peoples automatic investing plans.