At what age can you generally start withdrawing from a traditional IRA without a tax penalty?

1. A) 55
   B) 59½
   C) 62
   D) 65

Question 2: Insurance

What type of insurance is essential for protecting your income if you’re unable to work due to illness or injury?

1. A) Health insurance
   B) Life insurance
   C) Disability insurance
   D) Homeowners insurance

Question 3: Credit Scores

Which of the following actions is most likely to improve your credit score?

1. A) Closing old credit card accounts
   B) Paying off your credit card balance in full each month
   C) Applying for multiple new credit cards
   D) Maxing out your credit card limit

Question 4: Taxes

Which of the following is a tax-advantaged retirement account?

1. A) Savings account
   B) Certificate of deposit (CD)
   C) Roth IRA
   D) Money market account

Question 5: Spending Habits

What is the “50/30/20” rule in personal finance?

1. Spend 50% on needs, spend 30% on wants and save 20%
   B) Save 50%, invest 30% and spend 20%
   C) Spend 50% on wants, spend 30% on needs and save 20%
   D) Save 50%, spend 30% and invest 20%

Question 6: Retirement Accounts

Which of the following is a characteristic of a Roth IRA?

1. A) Contributions are tax-deductible
   B) Qualified withdrawals are tax-free after age 59½
   C) Required minimum distributions (RMDs) start at age 73
   D) Contributions are limited to $10,000 per year

Question 7: Investing

What’s the primary benefit of diversifying your investment portfolio?

1. A) Maximizing returns
   B) Minimizing taxes
   C) Reducing risk
   D) Increasing liquidity

Question 8: Investing Options

What’s an index fund?

1. A) A fund that tries to outperform the market
   B) A fund that tracks a specific market index
   C) A high-risk, high-reward investment
   D) A type of bond

Question 9: Retirement Savings

At what age can you start making tax-favored catch-up contributions to your retirement accounts?

1. A) Age 50
   B) Age 55
   C) Age 60
   D) Age 65

Question 10: Investment Strategies

What is “dollar-cost averaging”?

1. A) Investing a large sum of money at once
   B) Regularly investing a fixed amount of money over time
   C) Selling all investments during a market downturn
   D) Borrowing money to invest

Question 11: Debt Management

Which type of debt is generally considered “good debt” because it involves an asset that appreciates over time and provides tax benefits?

1. A) Credit card debt
   B) Payday loans
   C) Mortgage
   D) Car loan

Question 12: Social Security

When can you start receiving full Social Security retirement benefits if you were born in 1960 or later?

1. A) Age 62
   B) Age 65
   C) Age 66
   D) Age 67

Check Your Answers

The answers are below. How did you do? Whether you aced the quiz or found some areas to improve, remember that personal knowledge is a journey. Keep learning and making informed decisions to secure your financial future! Your financial and tax advisors are available to help.