Foolproof Module 6 Test Answers (2024)

FAQs

How much money will you need for retirement foolproof? ›

Now, how much money will you need for retirement? A good rule of thumb: You want to have at least 80% of your working income when you retire. You want to have enough retirement income to keep you going for 30 years.

The grace period: How many days you have to pay your credit card bill in full before you're charged a lot of interest.

Expert-Verified Answer

The correct answer is: 'The credit card company extends you a line of credit. You purchase "stuff" and then have the choice to pay the balance in full or a minimum payment each month. ' Credit cards extend a line of credit allowing you to make purchases.

They almost always cost more than going to a bank, a credit union or a store. Some people have problems with debt after using these ways to borrow. The charges can be very high. It is hard to pay the money back and get out of debt.

Even if you plan to pay off your credit card bill in full each month, never charge more than about 80% of your credit limit.

If you have a low cost of living and are able to budget and save wisely , 8000 a month may be enough to sustain your retirement . However , if you have high expenses or plan on living a more lavish lifestyle , 8000 a month may not be sufficient .

Everyone isn't going to want to spend $10,000 net a month in retirement. For some people, that will be way more than they need each month. For others, it might not be enough. And there might be some people that spending $10,000 net a month in retirement is just right.

The Consumer Financial Protection Bureau recommends keeping your credit utilization under 30%. If you have a card with a credit limit of $1,000, try to keep your balance below $300.

Keeping your credit utilization at no more than 30% can help protect your credit. If your credit card has a $1,000 limit, that means you'll want to have a maximum balance of $300.

The minimum monthly payment is the least amount of money a borrower can pay on a revolving credit account each month and still remain in good standing with a credit card company.

What should I do if I can't pay my credit card bill in full? ›

If you can't pay your credit card bill, it's important to act right away. Contact your credit card company immediately. Many card companies are willing to work with you to change your payment if you're facing a financial emergency.

The average FICO credit score in the US is 717, according to the latest FICO data. The average VantageScore is 701 as of January 2024. Credit scores, which are like a grade for your borrowing history, fall in the range of 300 to 850.

A credit card is a type of credit facility, provided by banks that allow customers to borrow funds within a pre-approved credit limit. It enables customers to make purchase transactions on goods and services.

It costs $30 to $50 in fees to transfer a $1,000 balance to a credit card, in most cases, as balance transfer fees on credit cards usually equal 3% to 5% of the amount transferred. Some credit cards even have no balance transfer fee, but it's rare for cards that do this to also have a 0% introductory APR on transfers.

A late payment drove up your interest rate. Most major issuers no longer charge penalty APRs — the higher interest rate that applies when a payment is late — but some still do. If your 0% APR card comes with penalty APR, one late payment could hike up your interest rate going forward from 0% to around 30%.

Going over your credit limit usually does not immediately impact your credit, particularly if you pay down your balance to keep the account in good standing. However, an account that remains over its limit for a period of time could be declared delinquent, and the issuer could close the account.

Credit card companies don't allow you to make minimum monthly payments, or to pay off an outstanding balance, with another credit card from a different company. Often, the fees for these types of transactions are too high for credit card companies to allow it.

How to withdraw cash from credit cards without charges? You can opt for credit cards with no cash advance charges to withdraw cash using a credit card without charges. With this, your outstanding amount will accumulate a small interest rate, making it easy to repay.

Some experts say to have at least eight to 10 times your annual salary available to you once you enter retirement. Others say you need at least 65% to 80% of your pre-retirement income available to you each year. There are also general savings recommendations by age, and, finally, there's the 4% rule, too.

Is $500,000 enough to retire on at 62? ›

Ultimately, whether you have enough to retire depends on your costs and your income. If you can live on a tight budget with the right circ*mstances, $2,000 a month from a pension and Social Security, combined with the right strategy with $500,000 in your Roth IRA may be enough to sustain you throughout your retirement.

Around the U.S., a $1 million nest egg can cover an average of 18.9 years worth of living expenses, GoBankingRates found. But where you retire can have a profound impact on how far your money goes, ranging from as a little as 10 years in Hawaii to more than than 20 years in more than a dozen states.

Our guideline: Aim to save at least 15% of your pre-tax income¹ each year, which includes any employer match. That's assuming you save for retirement from age 25 to age 67. Together with other steps, that should help ensure you have enough income to maintain your current lifestyle in retirement.