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Moneypoly: Test your fiscal fitness

So you think you know all about saving and investment? Here's a quiz for you. Inside you'll find some basic questions related to financial planning. So go ahead, and learn as you enjoy!

     Print Edition: November 1, 2007

Like any office, we also have our resident financial sadist — Professor Calculus. Very much like Tintin’s geeky, absent-minded professor, our Prof C is a nerd. He loves financial planning, and has been seeking an opportunity to test his wits against yours. “I’m sure they don’t even know the difference between saving and investment,” he said.

Well, here’s your chance to prove him wrong. Play this little game and see where you stand in fiscal fitness.

This is not a game of strategy or of chance — it’s purely a test of knowledge. (Hint: All the answers can be found in this and the past 26 issues of MONEY TODAY in our archives). All questions can be answered with a simple 'Yes' or a 'No'. Ready? Scroll down slowly and play the quiz. No cheating!

NOVICE

  1. I know exactly how much I spend every month
  2. I know exactly how much I save every year
  3. I know what rate of return I get from my investments
  4. know the difference between income generation and asset creation
  5. The rate of return on my investments should be higher than the rate of inflation
  6. I know what networth means and I know my current networth

AMATEUR

  1. I have clearly defined financial goals
  2. I have a definite strategy to help me meet these goals
  3. No more than 45% of my income goes to repay debt
  4. I make a clear budget every month

PROFICIENT

  1. The entry/exit load and the annual expense ratio on my mutual fund make no difference to the cost
  2. When choosing a mutual fund, I can use the NAV alone to judge the fund’s performance and returns
  3. Insurance is primarily meant to be a tax-saving instrument
  4. When buying stocks, I look at current price, not at a company’s history or performance
  5. If I hold shares of a company for 18 months, I pay capital gains tax of 10%
  6. “Double-indexation benefits” means that I pay tax twice on the same investment

MASTERMIND

  1. Splitting my savings among different investment options is the key to balancing risk
  2. My asset allocation may change over time, even if I do not change any of my investments
  3. The effect of compounding depends on the age at which I start investing
  4. I have invested enough to give me a retirement corpus that I will not outlive

SCORING

Novice

You get 1 point for a Yes and 0 for a No.

6 points: Yes, you know the basics of financial planning. On to the next section

3-5: A little knowledge is a dangerous thing…Read a little more before you move on

0-3: You’ll do well to read the past issues of MONEY TODAY (take a subscription, while you’re at it)

Amateur

Give yourself 1 point for a Yes and 0 for a No.

4 points: Ok, you’ve got a good grasp of your finances. Let’s see how you fare in the next section

2-3 : Not quite there yet, are you? But give the next section a shot...you might do better than you think

0-1: Hmm...After subscribing, you may want to go and read up all there is on the MONEY TODAY site — instant knowledge, so to speak

Proficient

Give yourself 1 point for a No and 0 for a Yes.

6 points: On a roll, aren’t you? The next section should get you

3-5: You’re getting there, slowly.

0-3: You’re obviously not our regular reader, are you?

Mastermind

Give yourself 1 point for a Yes, 0 for a No.

4 points: Congratulations! (Are you a financial planner, by any chance?)

2-3: You’ll do — if you read this magazine a little more carefully!

0-1: What can we say? Better luck next time!

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