Are You Smart Enough To Be in the 1%? Solve These Money Puzzles To Find Out

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Find out if you are smart enough to be in the 1% by solving these personal finance puzzles.

Also find out if you are smarter than a millionaire by taking this other quiz.

Question 1: The Roth Riddle

You make too much money to contribute to a Roth IRA directly. What’s a legal workaround that wealthy people use to still get tax-free retirement growth?

A) Skip the Roth and just use a 401(k) plan

B) Open a Roth IRA for your kids

C) Do a “Backdoor” Roth IRA

D) Buy crypto instead

Question 2: The Savings Puzzle

You want to retire with $2 million. If you start at age 30 and earn a 7% return, how much do you need to invest every month to get there by age 60?

A) About $1,000 a month

B) About $2,000 a month

C) About $3,500 a month

D) About $5,000 a month

Question 3: The Budget Fix

You earn six figures but still feel broke. What’s the first thing someone in the 1% would do to get control?

A) Cancel Netflix and Starbucks

B) Make a budget that includes savings and investing

C) Open a new credit card for points

D) Just wait for a raise

Question 4: The Tax Trick

You sell some stocks for a $20,000 profit after holding them for over a year. How are those gains taxed?

A) Like your regular income

B) At a lower tax rate called capital gains

C) They’re tax-free

D) It depends on your credit score

Question 5: The Cash Question

You’ve got $50,000 sitting in your checking account. You don’t need it for at least six months. What’s a smarter move than letting it sit?

A) Put it in a high-yield savings account or short-term Treasury

B) Buy a car

C) Invest in real estate

D) Leave it in your checking account to “stay safe”

Question 6: The Investment Secret

What matters most when it comes to long-term investment success?

A) Picking the best stocks

B) Avoiding all risk

C) Having the right mix of investments (asset allocation)

D) Buying and selling based on headlines

Question 7: The Silent Tax

You earn $200,000 as a small business owner. A tax pro suggests setting up a Solo 401(k). Why?

A) To get a business loan

B) To legally hide money from the IRS

C) To invest up to $70,000 in retirement contributions

D) To open a credit card with better rewards

Answers

Question 1 Correct Answer: C – Do a “Backdoor” Roth IRA

• Explanation: High earners can’t contribute to a Roth IRA directly, but they can put money into a Traditional IRA and then convert it. It’s called a Backdoor Roth IRA and it’s totally legal. This lets their money grow tax-free.

Question 2 Correct Answer: C – About $3,500 a month

• Explanation: If you invest $3,500 a month for 30 years and earn 7% per year, you’ll reach around $2 million. Wealthy people start early and automate their savings.

Question 3 Correct Answer: B – Make a budget that includes savings and investing

• Explanation: The wealthy don’t guess where their money goes. They build a budget that prioritizes goals first — like saving, investing and lifestyle upgrades.

Question 4 Correct Answer: B – At a lower tax rate called capital gains

• Explanation: Long-term capital gains are usually taxed at 15% for most people, instead of your full income tax rate. Wealthy investors often hold assets over a year to pay less in taxes.

Question 5 Correct Answer: A – Put it in a high-yield savings account or short-term Treasury

• Explanation: Wealthy people make every dollar work. Even short-term cash can earn 4% to 5% in a high-yield savings account or low-risk government bonds like T-bills.

Question 6 Correct Answer: C – Having the right mix of investments (asset allocation)

• Explanation: It’s not about timing the market or guessing the next big stock. Wealthy investors focus on having a good mix of stocks, bonds and other assets — and sticking to the plan.

Question 7 Correct Answer: C – To invest up to $70,000 in retirement contributions

• Explanation: With a Solo 401(k), business owners can contribute both as the employee and employer, allowing them to stash up to $70,000 in 2025, reducing taxable income and supercharging retirement savings. This is a favorite move of the wealthy and self-employed.

Score Yourself

• 6-7 Correct: You think like the 1% — intentional, strategic and tax-smart.
• 4-5 Correct: You’re on the right path. A few tweaks could change everything.
• 0-3 Correct: You’re not alone. Most people never learn this. Now you have a head start.

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