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Monday, January 14, 2019

Investments Worksheet Essay

Answer the pursuance questions in at least 50 words eachWhat argon the main(prenominal) differences between a 401K and a Roth individual retirement account?One of the main differences between a 401K and an Roth IRA is that a 401k is offered by your employer, while the Roth IRA is something an individual seeks and ancestrys on their own. With a 401K your employer contributes or matches what you are position into your 401K.How would you explain the difference between a stock, a bond, and a rough-cut fund?A stock is like owning a raise of a company, you are investing your money into something that is your that can make you more money. A bond is like loaning money to a bank or the government and when they pay you back, they pay you back with interest. A mutual fund is like investing in something with a group of people. Everyone owns a piece of it and benefits from it if it grows.What are the risks and rewards of investing?For investors, risk comes in many forms. Theres the risk of a downturn in stock prices. Theres the risk that inflation will erode an assets buying power. Theres the risk of political instability affecting worldwide markets, but without risk there is no rewards. Sometimes you have to get to a higher risk to get a better reward. They put depending on age should be how much you should be willing to risk.

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