Final Exam Preperation

1. Whats the difference between an IRA and a 401K
IRA- A retirement account with large tax breaks 
401K- 
2. What annual percentage of return did the S and P 500 make between May 22, 2009-> May 22, 2013

19.2%
3. What’s the most important consideration when choosing to buy a fund of any kind? Is it the turnover, commisiion or expense ratio?

Expense Ratio
4. If a fund has a frontend load, who gets it?

Broker, advisors
5. If a fund has a turnover of 50% what does that mean
6. Is it more important to pay off credit card debt, or start investing as early as possible

Pay off credit card, because high interest rate
7. What did the average US millionaires pay for their last car

30,000

8. Whats the most popular ca among US millionaires

Toyota
9. If laruen invested 200/month from age 18 to age 55, how much would she have if she earned 9% per year

675,911.48
10. The Dalbow Study shows that most investors earn large returns. Whats the biggest culprit

By high, selling low
11. When a fund charges a commission who gets that money

Stock broker/ sales agent
12. As an investor ages what asset do they usually increase in their portfolio

Bonds
13. What do 12B1 fees pay for in a actively managed fund?

Advertising
14. Since 1985 which markets have earned higher stock market returns? Fast growing economies like China? Or slow gorwing economies like the US?

Slow growing economies like the US