The following seven questions are from investment topics covered over the past six months of columns. To see how well you did, you can find the answers at “Investment Quiz” at www.capitalwealthmngt.com. There are a couple of trick questions, so be sure to double-check your answers.
1. Index funds have outperformed all actively managed U.S. stock mutual funds over the past 10 years by what percent?
A. 66%
B. 78%
C. 89%
2. The IRS allows employees over the age 59 1/2 to roll the savings from their current employer’s 401k plan into an IRA.
A. True
B. False
3. A $100,000 portfolio that gains 25% in year one, and loses 20% in year two, would be worth how much?
A. $105,000
B. $102,500
C. $100,000
4. Individuals over the age of 70 1/2 do not have to take their required minimum distribution for 2020.
A. True
B. False
5. Under which of the following conditions will you pay a 10% penalty if you withdraw contributions from your Roth IRA before age 59 1/2?
A.; To buy a new boat
B. To pay for your child’s college tuitionC. To pay for a vacation
D. Both a and c
E. None of the above
6. A mutual fund’s expense ratio represents all of the costs associated with owning a mutual fund.
A. True
B. False
7. In the event of your death, assets held in your retirement accounts are distributed to beneficiaries according to your will.
A. True
B. False
Martin Krikorian is president of Capital Wealth Management, a registered investment adviser providing investment management services at 9 Billerica Road, Chelmsford. He is the author of the investment books, “10 Chapters to Having a Successful Investment Portfolio” and the “7 Steps to Becoming a Successful Investor.” He can be reached at 978-244-9254, www.capitalwealthmngt.com, or info@capitalwealthmngt.com.
