What does it mean to retire?

• Stop earning money completely

• Stop working and live off savings and investments

• Stop paying taxes

• Stop spending money

What is the primary source of income for most retirees?

• Part-time work

• Investments, savings, and benefits

• Lottery winnings

• Family support

Which statement about Social Security is TRUE

• It replaces your entire income

• It is funded by sales taxes

• It replaces only part of your income

• It is available only for government workers

What risk does Social Security face by the 2030s?

• Higher benefits

• Depletion of trust fund reserves

• Elimination of payroll taxes

• Automatic increases in retirement age

Why can’t most Americans rely solely on Social Security?

• It’s optional

• It replaces only a portion of your income

• It’s only for wealthy individuals

• It’s not guaranteed to be paid monthly

What is an actively managed fund?

• A fund that copies a market index

• A fund run by professionals selecting investments

• A savings account with interest

• A government-run pension

What is a passively managed index fund?

• A fund that mimics a specific market index

• A fund that invests in real estate

• A government bond fund

• A high-risk stock fund

What is the main advantage of index funds?

• Higher taxes

• Lower operating expenses

• Unlimited contributions

• Guaranteed returns

What is an expense ratio?

• The percentage of profit paid in taxes

• Fees charged to manage mutual funds

• A measure of inflation

• The ratio of gains to losses

Compared to actively managed funds, index funds typically have:

• Higher risk

• Higher fees

• Lower fees

• No fees