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 […]
Money IQ Challenge 16
Question: ❓At what age can you claim the maximum monthly Social Security benefit? A) 62B) 65C) 67D) 70 Answer: ✅ D) 70 Here’s why: If you want the highest possible monthly Social Security benefit, you’ll need to wait until age 70 to start collecting. You can start as early as 62—but the checks are smaller. […]
Money IQ Challenge 15
Question: ❓If you invested $100,000 for 20 years, which of these would give you the biggest return? A) 7% return every year for 20 yearsB) 10% for the first 5 years, then 4% for 15 yearsC) 4% for the first 15 years, then 10% for the final 5D) They’d all end up with the same […]
Money IQ Challenge 14
Question: ❓What’s the main difference between term and permanent life insurance? A) Term insurance is cheaper and permanent is more expensiveB) Term lasts for a set period, permanent lasts for lifeC) Permanent builds cash value, term doesn’tD) All of the above Answer: ✅ D) All of the above Here’s why: But here’s the real difference […]
Money IQ Challenge 13
Question: ❓Which of these will always override what your will says? A) A handwritten noteB) A verbal agreementC) A beneficiary formD) A letter to your attorney Answer: ✅ C) A beneficiary form Here’s why: Wills are important—but they don’t control everything. Accounts like your 401(k), IRA, or life insurance pass directly to whoever is listed […]
Money IQ Challenge 12
Question: ❓Which retirement account lets your money grow and compound, without ever paying taxes on the gains (as long as you follow the rules)? A) Traditional IRAB) 401(k)C) SEP IRAD) Roth IRA Answer: ✅ D) Roth IRA Here’s why: A Roth IRA is funded with after-tax dollars, so your money grows completely tax-free—and you pay […]
Money IQ Challenge 11
Question: ❓You’re 35 years old and start investing $500/month with a 7% annual return. How much more will you have at age 65 compared to someone who waits until 45 to start with the same amount? A) $149,000 B) $249,000 C) $349,000 D) $449,000 Answer: ✅ C) $349,000 Here’s why: If you invest $500/month starting […]
Money IQ Challenge 10
Question: ❓You sell an investment for a $50,000 gain. Which of these could increase how much you owe in taxes? A) Holding the investment for less than a year B) Selling it in a year you have high incomeC) Not planning for state taxesD) All of the above Answer: ✅ D) All of the above […]
