Money IQ #56: How Much Does Missing the Market’s Best 30 Days Cost You?
Question: ❓ Over the 30 years from July 1995 through June 2025, the S&P 500 returned an average of 8.4% per year if you stayed fully invested. If you missed just the 30 best trading days during that stretch (out of roughly 7,500 total trading days), what was your annualized return instead? A) 6.2%B) 4.5%C) […]
Are Life Insurance Death Benefits Taxable? | Money IQ Challenge
Life insurance death benefits are usually income-tax-free, but estate tax can apply to large estates. Here’s what your beneficiaries need to know.
Are Life Insurance Policy Loans Taxable? | Money IQ
Are life insurance policy loans taxable? Usually no—but one common mistake triggers a ‘phantom income’ tax bill years later.
Why People Leave Money in Cash: Loss Aversion | Money IQ
Most people leave long-term money sitting in cash for one reason—and it isn’t ignorance. Research points to loss aversion, a bias that drives delay.
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 […]
