Term
| Compounding is attained in mutual fund investing through |
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Definition
| Automatic reinvestment of dividends |
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Term
| A switching privileges on mutual funds allows shareholders to exchange shares of one mutual fund for shares of.. |
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Definition
| any mutual fund in the same family of funds |
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Term
| Taxes on annual earnings from mutual funds can be avoided |
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Definition
| while those amounts are kepy in an IRS-qualified retirement account if those earnings are interest from municipal bonds. |
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Term
| Open-end mutual fund shares have good liquidity because |
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Definition
| the fund company will buy back the shares whenever requested. |
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Term
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Definition
| are sold at their current net asset value |
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Term
| ________ are recieved while one owns shares of a mutual fund. |
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Definition
| dividend distributions and capital gains distributions. |
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Term
| Lina earns $125K a year, while Cristine earns $115K a year. If both are employees and the Social Security wage base is $106K, Lina pays __________ Social Security taxes than (as) Christine |
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Definition
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Term
| Marketing tax-deferred deposits into a retirement account means that the funds are |
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Definition
| not taxed when deposited, but taxed when withdrawn |
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Term
| Upon termination of employment, an employee can keep his or her savings in a tax-sheltered account by transferring the retirement funds from the employer's account to another account without penalty in a protection called |
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Definition
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Term
| The primary purpose of the Employee Retirement Income Security (ERISA) is to |
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Definition
| Regulate employer-sponsored pension plans. |
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Term
| The process by which employees obtain nonforfeitable rights to their retirement benefits that cannot be taken away in case of dismissal or resignation is called |
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Definition
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Term
| A married worker who is to receive income from his or her defined-benefit plan can elect to have a higher check that will stop upon his or her death but only if |
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Definition
| his or her spouse consents |
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Term
| Financial experts estimates that retirees need at least _________ percent of their preretirement income to live comfortably |
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Definition
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Term
| Women need to save more money for retirement because they |
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Definition
| Live longer, get fewer retirement benefits from employers, and get less from social security |
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Term
| ____ percent of Americans employed in this country are covered by the Social Security Program. |
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Definition
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Term
| The age at which retirees born in 1960 or later will be able to receive full Social Security benefits will gradually increase until it reaches ___ |
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Definition
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Term
| An employer-sponsored retirement plan in which the employer or the employee puts money in a retirement account for the employee, and the amount of the retirement benefit depends on how well the investment yields is called a________ |
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Definition
| defined-contribution plan |
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Term
| the type of employer retirement plan in which the benefit is determined by a formula that generally includes the worker's average pay and the number of years worked for the company is called a _________ plan |
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Definition
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Term
| The process by which a decedent's estate is settled and the assets distributed by the courts to legal heirs is called |
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Definition
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Term
| When one dies without a will, this is called dying ______ |
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Definition
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Term
| The right of escheat gives a deceased's property to the |
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Definition
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Term
| A trust established while alive to take effect at your death is called a ______ |
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Definition
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Term
| A ______ Power of attorney takes effect when a specified event occurs |
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Definition
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Term
| A ______ is designed to take effect only when the grantor is unable to manage his or her own financial affairs owing to incapacitation |
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Definition
| Durable power of attorney |
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Term
| _________ is a repair expense for rental property rather than a capital improvement |
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Definition
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Term
| There is more risk when borrowing to finance a real estate investment b/c |
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Definition
| the investor does not live in the property |
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Term
| under the depreciation provisions applying to real estate which of the following is false? |
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Definition
| the value of the land and property is added together and divided by the depreciation factor |
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Term
| Investors choose derivative |
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Definition
| Both to reduce risk by hedging against losses and to take on additional risk by speculating |
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Term
| An option is a contract that_____ |
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Definition
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Term
| When an option writes does not own the asset, it is called a naked option |
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Definition
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