Inherited IRA 10-Year Rule, Explained
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 […]
What Is the Deadline to Contribute to an IRA?
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 […]
Does Marriage Combine Your Credit Scores?
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? […]
What Does It Mean When an Advisor Is a Fiduciary?
Question: ❓When a financial professional says they act as a “fiduciary,” what does that actually mean? A) They are licensed to sell investments and insuranceB) They must put your best interest first, even if it pays them lessC) They only charge flat fees and never earn commissionsD) They can guarantee your investments will not lose […]
Can You Contribute to a 401(k) and an IRA?
Question: ❓You have a full-time job with a 401(k) and you also earn money from a side gig. Which of the following is true? A) You can only contribute to your work 401(k), not an IRAB) You can have both a 401(k) at work and a traditional or Roth IRAC) You must have an LLC […]
What Is a Trusted Contact on an Investment Account?
Question: ❓You’re helping your parents review their investment accounts. You see an option to add a “trusted contact” person on file. What’s the main purpose of a trusted contact? A) To give that person full access to trade and withdraw money if neededB) To let the firm contact someone if there are concerns about fraud, […]
Lump Sum or Invest Slowly: Which Wins Historically?
Question: ❓You come into a lump sum of money and want to invest it. Historically, which approach has led to higher long-term results? A) Waiting for the market to feel saferB) Spreading the money in slowly over timeC) Investing the full amount as soon as possibleD) Holding cash until the next downturn Answer: ✅ C) […]
Why Two Investors With the Same Return End Up Far Apart
Question: ❓Two people invest the same total amount over 25 years and earn the same average return. What can still cause one person to end up with much less money than the other? A) Which company or app they use for their investmentsB) The order in which they experience good and bad market yearsC) Whether […]
What Is Opportunity Cost in Your Spending?
Question: ❓What does “opportunity cost” mean when spending money? A) The tax you pay on purchasesB) The extra fee for choosing one brand over anotherC) What you lose the chance to do because of the choice you madeD) The price difference between sale and full price Answer: ✅ C) What you lose the chance to […]
