Investments Worksheet Essay

execute the following questions in at to the lowest degree 50 words eachWhat be the main differences mingled with a 401K and a Roth IRA?One of the main differences mingled with 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 cash on their own. With a 401K your employer contri just nowes or matches what you atomic number 18 putting into your 401K.How would you explain the difference between a stock, a bond, and a vulgar broth?A stock is want owning a piece of a company, you ar investing your money into something that is your that can settle you more money. A bond is comparable loaning money to a fix or the government and when they contain 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 a(prenomi nal) forms. at that places the risk of a downturn in stock prices. Theres the risk that inflation go forth erode an assets acquire power. Theres the risk of governmental instability affecting international markets, but without risk there is no rewards. sometimes you have to take a higher(prenominal) risk to get a reveal reward. They say depending on age should be how much you should be willing to risk.