Money IQ Challenge 52
How much value does a financial advisor actually add? Vanguard says up to 3% in net returns, with behavioral coaching worth the most.
Money IQ Challenge 51
Question: ❓ You left a job two years ago and forgot about the $4,000 sitting in your old 401(k). What could your former employer’s plan legally do with that money? A) Nothing — it’s your money and they have to keep it there until you decideB) Automatically cash it out and send you a check, […]
Money IQ Challenge 50
Question: ❓If you withdraw $50,000 from a traditional 401(k) in retirement, how much of that is typically subject to federal income tax? A) Only the gains—your original contributions are tax-freeB) 50% of the withdrawalC) The full $50,000D) It depends on whether you’ve held the account for more than 5 years Answer: ✅ C) The full […]
Money IQ Challenge 49
Question: ❓Your parent is in the hospital and can’t make financial decisions. You want to access their bank account to pay their bills. What do you need? A) A signed letter from your parent giving you permissionB) A durable power of attorney, signed while your parent was still mentally competentC) A court order, which you […]
Money IQ Challenge 48
Question: ❓You earn $100,000 a year and get a $10,000 raise, pushing your income to $110,000. That crosses you into the next federal tax bracket. What happens to your taxes? A) Your entire income is now taxed at the higher rateB) You could actually take home less money than before the raiseC) Only the $4,300 […]
Money IQ Challenge 47
Question: ❓A parent leaves you their traditional IRA worth $200,000. What do most non-spouse beneficiaries need to know? A) You can leave it untouched and let it grow tax-free for as long as you want.B) You generally have to withdraw the full amount within 10 years, and every withdrawal is taxed as income.C) You’ll pay […]
Money IQ Challenge 46
Question: ❓It’s March 10, 2026.You have not made any IRA contribution for the 2025 tax year yet, but you want to. Which statement is true? A) You are too late. IRA contributions for 2025 had to be made by December 31, 2025.B) You can still make a 2025 IRA contribution up to the tax-filing deadline […]
Money IQ Challenge 45
Question: ❓You’re about to get married. You both work, but your financial situations look different: Partner A has strong credit, some savings, and low debt. Partner B has a lower credit score, late payments in the past, and higher-interest debt. Once you’re married, what has the biggest impact on your long-term finances as a couple? […]
Money IQ Challenge 44
Question: ❓You want a quick way to estimate how long it might take for an investment to roughly double, based on its average annual return. Which simple rule helps you do that in your head? A) Divide the number of years by 10B) Multiply the return by 2C) Divide 72 by the annual returnD) Divide […]
