Money Smarts Showdown

It seems our household has been significantly impacted by a bout of strep throat, with five out of six of us currently on antibiotics. I've taken time off work, and the kids are home from school. We've been indulging in plenty of ice cream and chocolate pudding to ease the discomfort. It appears to be a widespread issue, as their school classes are notably underattended.

This February, my mother-in-law and I spoiled ourselves by attending several orchid shows in the area. These events are fantastic opportunities to admire award-winning arrangements and enhance our personal collections with new specimens.

After visiting three shows and acquiring an impressive number of orchids, we realized our enthusiasm might have gotten a little out of control. As we lugged our haul from the final event, I mentioned to her, "I think we've attended enough shows for now."

She agreed, straining under the weight of her purchases, responding, "I think you're right."

Every year or so, I quiz my faithful readers to see if they've been paying attention. So I hope you've been studying. 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 taxes must you pay if you live in Florida?

A. State inheritance tax
B. Sales tax
C. State estate tax
D. State income tax

Answer: babcbdab

2. What is the stock market's average return 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. Buying marijuana stocks and bitcoin is:

A. safe
B. speculative
C. gambling
D. A good idea for most people

Cccbcda

4. Over the past 22 years, the clients I have met with who bought a single investment property:

A. Underestimated the great tax breaks
B. Ended up making very little money
C. Didn't make much from rent, but a lot when they sold
D. Wish they had purchased more

Ddbdabca

5. The life expectancy for a healthy 65-year-old is:

A. 80
B. 85
C. 90
D. 95

Abccdba

6. Social Security will have a cost of living increase next year of:

A. 3.2%
B. 5.9%
C. 0%
D. 1.1%

Dbadbadba

7. Condo owners are seeing increases in HOAs and assessments for every reason EXCEPT:

A. Property insurance has increased
B. Demand for condos has gone down
C. New laws about deferred maintenance
D. Increased instances of hurricanes

Adbdaadc

8. How do taxes work on Roth IRAs?

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 must pay taxes when you take the money out.
C. You don’t get a tax break but can take the money out tax-free.
D. You get a tax deduction, but when you take the money out, you must pay income taxes.

Aacabda

9. How do taxes work on 401ks and IRAs?

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 can take the money out tax-free.
D. You get a tax deduction upfront but must pay income taxes when you take the money out.

Ddddecba

10. When are you required to start taking money from your IRA?

A. 59 ½
B. 65
C. 73
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. How much you have in the bank
D. Your budget

Dcdadcz

12. How many times has the stock market decreased in the past fifty years?

A. 5 times
B. 20 times
C. 25 times
D. 10 times

Ddddacbc

13. How many times has the stock market decreased by more than 10% in the past fifty years?

A. 5 times
B. 20 times
C. 25 times
D. 10 times

Ddadacbc

14. If Mr. Smith gets $2000/mo from Social Security and Mrs. Smith gets $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
D. She stops getting Social Security altogether.

Adacadddd

15. Mrs. Smith is divorced and has never remarried. If her ex is getting $2000/mo from Social Security and she is getting $1400, what happens to Mrs. Smith’s benefit if her ex dies?

A. She starts getting $2000/mo
B. She keeps getting $1400/mo
C. She gets to add them and get $3400/mo
D. She stops getting Social Security altogether.

ddadcabd

16. 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

17. What would it have grown to if you invested $100,000 in the stock market from 1979 to 1999?

A. $223,500
B. $150,700
C. $1,840,000
D. $940,300

abcdddac

18. Buying gold from a commercial on cable TV is:

A. A borderline scam.
B. Good for people looking for a conservative investment.
C. A good idea is today's economic climate.
D. A bad idea for many people.

aaacedjg

19. 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?

A. 5%
B. 2%
C. 8%
D. 3%

Dbabdac

20. How often do "most economists" predict a recession?

A. Every ten years
B. Every five years
C. Every three years
D. Every single stinkin' year.

Cddbccca

21. On average, how much money do 75-year-olds spend compared to those aged 60?

A. 40% less
B. 20% more
C. 10% less
D. 30% more

Bbabdadlkj

22. What is my favorite pastime?

A. Pickleball
B. Orchids
C. Cooking
D. Stamp Collecting

Dbbdbadba

How did you do? As for myself, I got 100%, but I made the quiz.

Be Blessed,

Dave