ECONOMICS
SAVING AND INVESTING
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Since investments are considered unearned income, taxes do not have to be paid on earnings.
|
|
|
Taxes are often owed on profits generated from investments.
|
|
|
Taxes only have to be paid on employer-sponsored investment accounts.
|
|
|
Taxes are always paid on investments either when the money is placed in the investment or removed from the investment.
|
Detailed explanation-1: -SIP-Systematic Investment Plan SIP is one of the best ways to invest in mutual funds for retirement planning. Private sector employees often plan for their retirement with SIPs as it helps to accumulate and compound wealth affordably. SIP is a systematic approach to investing in mutual funds.
Detailed explanation-2: -Ideally, you’ll choose a mix of stocks, bonds, and cash investments that will work together to generate a steady stream of retirement income and future growth-all while helping to preserve your money.
Detailed explanation-3: -Since rich people save more than the poor, progressive rate of taxation reduces savings potentiality. This means low level of investment. Lower rate of investment has a dampening effect on economic growth of a country. Thus, on the whole, taxes have the disincentive effect on the ability to work, save and invest.
Detailed explanation-4: -Draw a personal financial roadmap. Evaluate your comfort zone in taking on risk. Consider an appropriate mix of investments. Be careful if investing heavily in shares of employer’s stock or any individual stock. Create and maintain an emergency fund. More items