Investments Worksheet Essay

Answer the following questions in at least 50 words eachWhat atomic number 18 the main differences between a 401K and a Roth IRA?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 person seeks and funds on their own. With a 401K your employer contributes or matches what you are putting into your 401K.How would you explain the difference between a filiation, a bond, and a mutual fund?A stock is like owning a piece of a company, you are investing your money into something that is your that can make you more money. A bond is like lend 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 r isk that inflation will erode an assets purchasing power. Theres the risk of political instability affecting international markets, but without risk there is no rewards. Sometimes you have to take a higher risk to get a better reward. They say depending on age should be how much you should be willing to risk.