Money IQ Challenge 25
Question: ❓Which of these is usually the most effective tool for transferring wealth to the next generation? A) 401(k)B) Brokerage accountC) Life insuranceD) 529 college plan Answer: ✅ C) Life insurance Here’s why: life insurance is meant for this. The money goes straight to your family, usually tax-free, and doesn’t get tied up in court. […]
Money IQ Challenge 24
Question: ❓John, age 45, leaves his job and has $150,000 in his 401(k). Which choice would trigger an extra 10% penalty—on top of regular taxes? A) Rolling it over into an IRA B) Leaving it in his old employer’s plan C) Cashing it out for immediate income D) Moving it into his new employer’s […]
Money IQ Challenge 23
Question: ❓If your portfolio drops 20%, how much does it need to gain to break even? A) 20% B) 25% C) 30% D) 40% Answer: ✅ B) 25% Here’s why: Losses and gains aren’t symmetrical. If you have $100,000 and lose 20%, you’re down to $80,000. To get back to $100,000, that $80,000 has […]
Money IQ Challenge 22
Question: ❓If one spouse stays home to raise the kids, how much life insurance coverage do experts often recommend for them? A) None—since they don’t bring in income B) Enough to cover 1 year of household expenses C) $250,000 flat amount D) Enough to cover childcare, household work, and future needs (often hundreds of […]
Money IQ Challenge 21
Question: ❓If you take out a standard 30-year mortgage, about how much will you typically pay in interest over the life of the loan? A) Around 20–30% of the purchase price B) Around 40–50% of the purchase price C) Around 80–100% of the purchase price D) More than double the purchase price Answer: ✅ C) […]
Money IQ Challenge 20
Question: ❓If you invest $5,000 and it earns an average of 7% per year, about how long will it take to double? A) 5 years B) 7 years C) 10 years D) 14 years Answer: ✅ B) 7 years Here’s why: That’s the “Rule of 72” in action—you divide 72 by your annual rate […]
Money IQ Challenge 19
Question: Marcus has a brokerage account, a savings account, and a life insurance policy. He just lost his job and needs quick access to money to cover the next few months. ❓Which should he use first? A) Life insuranceB) Savings accountC) Brokerage accountD) Take out a loan Answer: ✅ B) Savings account Here’s why: Savings […]
Money IQ Challenge 18
Question: ❓Which investor ends up with more money by age 65 (at an 8% return)? Lisa, who invests $5K per year from age 25–35 and then stops Mark, who invests $5K per year from age 35–65 Answer: ✅ Answer: Lisa Here’s why: Lisa invests $5K a year for just 10 years—then stops. Mark invests the […]
Money IQ Challenge 17
Question: ❓What’s one common thing people forget to include when calculating their life insurance needs? A) Childcare or household help B) Mental health support (therapy, grief counseling) C) Time off work for your spouse or partner D) All of the above Answer: ✅ D) All of the above Here’s why: When most people think about […]
