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 […]
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 […]
