Do you think you’ve learned stuff from my weekly emails? This week I’m going to test your memory and your smarts. Only of few of you will know all the answers (let me know if you get 100%). Are you up to the challenge? Good luck. Note: I tried to put the answers under each question but I don’t want you to cheat. So under each question, you will see a string of letters like this: abccdba. The THIRD letter is the correct answer (“c” in this example). 1. What is a mutual fund? A. An individual stock. B. A vehicle that contains lots of stocks and bonds all in one place. C. A way beneficiaries get around the law to change who gets the money. D. A stock that you “mutually” agree on with a financial advisor. Answer: babcbdab 2. What is the average return of the stock market over the past 20, 50, and 100 years? (They are all around the same number) A. 10% B. 6% C. 4% D. 2% Ebadcba 3. What year was the last stock market crash? A. 2001 B. 2020 C. 1762 D. 2008 Ccdbcda 4. Once on Medicare, what is the maximum out-of-pocket cost you could pay for medical expenses in any given year? A. $30,000,000 B. $10,500 C. $6,700 D. There is no limit. Ddcdabca 5. How much money should you save in an “emergency fund” of cash at the bank? A. One month’s expenses B. One year of expenses C. Three months of expenses D. Six months of expenses Abdcdba 6. The average lifespan of a healthy 65-year-old man is: A. 85 B. 80 C. 90 D. 110 Dbadbadba 7. Which investment is the most volatile? A. A single bond B. A single stock C. A bond mutual fund D. A stock mutual fund Adbdatry 8. How do taxes work on Roth IRA’s? A. You get a tax deduction when you add money and then a tax deduction when you take the money out. B. You don’t get a tax break upfront and you have to pay taxes when you take the money out. C. You don’t get a tax break but you can take the money out tax-free. D. You get a tax deduction but when you take the money out you have to pay income taxes. Aacabda 9. How do taxes work on 401k’s and IRA’s? A. You get a tax deduction when you add money and then a tax deduction when you take the money out. B. You don’t get a tax break. You have to pay taxes when you take the money out. C. You don’t get a tax break but you can take the money out tax-free. D. You get a tax deduction upfront but when you take the money out you have to pay income taxes. Ddddecba 10. When you have to start taking money from your IRA?

11. 59 ½ B. 65 C. 72 D. 75 Cacdadca 11. What is the most important variable for your retirement finances? A. The amount in your 401k B. Whether or not you have a mortgage C. Have much you have in the bank D. Your budget Dcdadcz 12. How much money can you take with you when you die?
12. $1000 B. $150,000 C. $350,000 D. $0 Ddddacbc 13. If Mr. Smith is getting $2000/mo from Social Security and Mrs. Smith is getting $1400, what happens to Mrs. Smith’s benefit if Mr. Smith dies? A. She starts getting $2000/mo B. She keeps getting $1400/mo C. She gets to add them and get $3400/mo
13. She stops getting Social Security altogether. Adacads 14. Day trading is a good idea if… A. You have time to pay attention to the markets. B. You have the expertise. C. Never. It’s almost always a loser in the long term D. You have fancy software you bought off the internet for $1500. Adcdaba 15. If you invested $100,000 in the stock market from 1979 to 1999, what would it have grown to? A. $223,500 B. $150,700 C. $1,840,000 D. $940,300 abcdea 16. Does your Social Security ever increase after you take it? A. No. B. Yes. It grows by 8% per year. C. Yes. It grows by 2% per year. D. Yes. It increases at the rate of inflation. aadcedjg 17. If you invest in a diversified portfolio of stocks and bonds with at least half of the money in stocks- what is a reasonable amount of money to take from the account each year?
14. 5% B. 2% C. 8% D. 3% Dbabdacz 18. What percentage of the country die with more money than ever?
15. 10% B. 20% C. 30% D. 50% Cdcbea 19. On average, how much money do 75-year-olds spend, compared to those age 60?

A. 40% less B. 20% more C. 10% less D. 30% more Bbabdadlkj 20. What is my favorite ice cream flavor? A. Vanilla B. Chocolate C. Mint Chocolate Chip D. Cookie Dough Dbbdbadba How did you do? As for myself, I got 100%, but I made the quiz. Be Blessed, Dave