Standard 6: Retirement Planning

Front

Which one of the following events could make your retirement benefit LESS than expected?
Options:
Inflation occurs at a lower rate than you calculated.
Your rate of return is lower than you had calculated.
You earn a larger retirement benefit than you had calculated.
You inherit money you had not anticipated.

Back

Your rate of return is lower than you had calculated.

Front

Life expectancy refers to

Back

A statistical measure of the average life span of a specific population.

Front

When planning for retirement, you need to determine how much money you will need and how many years you will need it.

Back

how much money you will need and how many years you will need it.

Front

Most people plan to work

Back

more years than they actually do

Front

Which of the following statements about Social Security is the MOST accurate?
Even if you do not start saving and planning for retirement, you will earn enough money from Social Security to maintain your current lifestyle.
Social Security was originally designed to be a supplemental income for people over the age of 65.
Because Social Security is a government program, it is guaranteed to be there when you retire.
The average income from Social Security is about $40,000.

Back

Social Security was originally designed to be a supplemental income for people over the age of 65.

Front

If you are concerned about your investment losing money instead of appreciating, then you are worried about ______________ risk.

Back

market

Front

As a young person, saving for your retirement is an example of a ________________ goal.

Back

long-term

Front

Diversification refers to

Back

a risk management strategy where you include a wide variety of investments within your portfolio.

Front

Why do people invest when risk is involved?

Back

Because the potential to make money is greater than the risk of losing it.

Front

The primary difference between an annuity and a 401(k) is

Back

annuities provide a guaranteed amount each month after retirement and income from a 401(k) is based on the earnings.