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 […]
Money IQ Challenge 9
Question: ❓At what age are you required to start taking money out of your traditional retirement accounts? A) 65 B) 70½ C) 73 D) 75 Answer: ✅ C) 73 Here’s why: That’s the current age for Required Minimum Distributions (RMDs) if you have a traditional IRA or 401(k). The IRS won’t let you leave that […]
Money IQ Challenge 8
Question: ❓Which type of life insurance is permanent and pays out to your beneficiaries no matter when you die (as long as the policy is active)? A) Term Life B) Universal Life C) Accidental Death Insurance D) Group Life through work Answer: ✅ B) Universal Life Here’s why: Universal life is a type of permanent […]
Money IQ Challenge 7
Question: ❓Which of these IRAs allows your money to grow tax-free and be withdrawn tax-free in retirement? A) Traditional IRAB) SEP IRAC) SIMPLE IRAD) Roth IRA Answer: ✅ D) Roth IRA Here’s why: With a Roth IRA, you contribute after-tax dollars—but your money grows tax-free, and qualified withdrawals in retirement are also tax-free. None of […]
Money IQ Challenge 6
Question: ❓What has the biggest impact on how much your money grows through compound interest? A) The amount you start with B) The interest rate C) How often you check your account D) How long you leave the money invested Answer: ✅ D) How long you leave the money invested. Here’s why: While starting amount […]
Money IQ Challenge 5
Question: ❓Which of the following is most likely to cause someone to run out of money in retirement? A) Not saving enough B) Market downturns C) Poor budgeting D) Living longer than expected Answer: ✅ D) Living longer than expected Here’s why: Outliving your money is one of the most underestimated (but most dangerous) retirement […]
Money IQ Challenge 4
Question: ❓Which habit leads to the worst investment results over time? A) Holding during market drops B) Not checking your portfolio C) Panic selling during volatility D) Investing in index funds Answer: ✅ C) Panic selling during volatility Here’s why: Panic selling is one of the most damaging investor behaviors. When markets drop, many people […]
