February 5

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Financial Facts Quiz—No Peeking!

Having three teenage boys in the house can be an interesting experience. Their eating habits are quite unique. It is like watching wild animals on the plains of East Africa. If I make steak, my oldest will stick a fork in the middle and eat it whole like a caveman. My middle son will fry up an entire package of bacon at 9:00 at night and take it to his room. My youngest boasted to me last weekend that he ate 35 waffles.

Our dogs suffer from severe skin allergies. We received allergy medication from the vet, costing one dollar per pill. I had no idea how expensive dogs could be.

Grammy is coming to town this weekend. My oldest son, Chris, is practicing for the school talent show, where he will play the piano while a girl sings. Although Grammy won't be able to attend the show, she plans to convince Chris to let her join him for a practice session at the girl's house. I'm not sure how he will feel about that.

Below is a picture of my wife at eight years old. They are cleaning shrimp they caught under the Ringling Bridge.


Pop Quiz! I hope you did your homework.

I don't want you cheating by peeking at the answers. There is a string of letters after each question. The third letter will reveal the correct answer.

1. The Full Retirement Age, according to Social Security, for someone born 1960 or later is:

A. 65
B. 66
C. 67
D. 70

Answer: ADCBACC (the answer is C because it is the third letter in that string of letters)

2. You can work and receive Social Security at the same time:

A. If you are at least 62.
B. If your income is less than $22,320.
C. If you are at least 70.
D. If you work for the federal government.

ACBDADA

3. The Cost of Living Adjustment for Social Security this year is:

A. 2.5%
B. 11.1%
C. 5.9%
D. There is no increase

AAACDCD

4. What is an "S&P 500 Index Fund"?

A. A mutual fund that investment managers actively manage.
B. A basket of stocks that holds the 500 biggest companies.
C. An investment you should only use inside an IRA.
D. A drawer full of 500 index cards.

BABDCDC

5. What was the total return during the worst five-year period in the stock market's history (adding or subtracting the percentage return each year for a total return over five years)?

A. -18.1% total return
B. -35.4% total return
C. +3.4% total return
D. -2.3% total return

DBDCDAC

6. Which of the following is NOT a kind of bond?

A. Government Bonds
B. Municipal Bonds
C. Large Cap Bonds
D. Corporate Bonds

BDCACBC

7. Who can best predict the direction of the stock market?

A. Economists
B. Market Analysts
C. Finance Professors
D. Absolutely no one

CDDCABC

8. Are we headed into a recession in 2025?

A. I know, but I'm not going to tell you.
B. Yes, if inflation continues to rise.
C. Nobody knows. People are always predicting recessions.
D. No, the economy is so strong that we can get through these times.

BCCDAA

9. In 1981, the world's extreme poverty rate was 42%. What is it now?

A. 8.6%
B. 30.2%
C. 40.9%
D. 15.4%

ADADCA

10. When are you too old to invest your money in stocks?

A. 80
B. 90
C. 65
D. Never

ACDDDCA

11. Which of these statements is true?

A. Most spending happens during the first few years of retirement.
B. You have to have $1,000,000 to retire comfortably.
C. You should look at your portfolio once a month.
D. You must have your house paid off before you retire.

ABACDA

12. Currently, the Dow Jones is around:

A. 38,000
B. 45,000
C. 25,000
D. 33,000

BCBDCAB

13. At the depths of Covid, the Dow Jones fell to:

A. 30,000
B. 21,000
C. 32,000
D. 25,000

ADBDABA

14. From 1800-1900, the stock market averaged:

A. 5%
B. 10%
C. 3%
D. 8%

AABACD

15. If your child started investing $100/mo at age 20 into the stock market, how much would they have at age 65?

A. $130,000
B. $560,000
C. $860,000
D. $948,000

ABDBADA

16. For many, the biggest expense in retirement is:

A. Car repairs
B. Prescriptions
C. Dental care
D. Taxes

ADCDACA

17. How much do you pay in payroll taxes (that go to Social Security and Medicare)?

A. None
B. 7.65%
C. 8.9%
D. 3.4%

AABDBAC

18. When you pass your IRA on to your children at death, what happens?

A. They have to pay taxes on the proceeds immediately.
B. They have to take a little bit out each year for the remainder of their lives.
C. They have ten years to take distributions and empty the account.
D. The IRA is not taxable once passed down.

CCCDADC

19. Buying a single rental home to entirely fund your retirement is:

A. An easy way to create income.
B. A very safe way to keep your money growing.
C. Very risky with home prices where they are now.
D. It's probably a bad idea.

BCDBACD

20. My favorite sports team is:

A. The Philadelphia Eagles
B. The Pittsburgh Steelers
C. The Cleveland Browns
D. The Buffalo Bills

CDBCABC

How did you do? Let me know!

Be Blessed,

Dave

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