Dave Ramsey Chapter 11

$1,200

$2,520

$4,800

$5,000

A type of investment at a bank

A type of investment at a bank or investment firm that has good tax benefits

The tax treatment on virtually any type of investment

Investment that uses pre-tax dollars

The traditional IRA allows a contribution amount of $5,000 for non-income producing spouses; the Roth IRA doesn’t.

The Roth IRA grows tax free; the traditional IRA doesn’t.

Contributions to your Roth IRA are pre-tax; contributions to a traditional IRA are after-tax.

A traditional IRA grows tax free; the Roth IRA doesn’t.

Over 59 and a half years old

First-time home purchase up to $10,000

Career change and temporary drop of income

Death or disability

Have the money sent to you and deposit it into a new IRA within 60 days.

Do a direct transfer into an IRA.

Leave the plan where it is so it can continue to accrue interest.

Cash out the plan and invest in good mutual funds.

You have already paid taxes on the money, so it will grow tax free.

You will pay taxes only on the growth of $3,000.

You have maxed out your contribution.

Both a and b

ESA

Life insurance

Pre-paid college tuition

Savings bonds

6 years

7.2 years

8 years

9 years

A close family member or friend because you will be helping each other out

A financial counselor who is sophisticated and uses all of the right vocabulary

A financial counselor with the heart of a teacher who explains everything to you

A financial counselor who has at least five years’ experience

Use tax-favored plans

Use pre-paid college tuition

Use a Certificate of Deposit

Use insurance or savings bonds