Retirement Planning - Standard 6 Assessment
1. Which of the following events could make your retirement benefits LESS than expected?
a. Inflation occurs at a lower rate than you calculated.
b. Your rate of return is lower than you had calculated
c. You earn a larger retirement benefit than you had calculated
d. You inherit money you had not anticipated.
2. Life expectancy refers to
3. When planning for retirement, you need to determine
4. Most people plan to work
5. Which of the following statements about Social Security is MOST accurate?
a. even if you do not start saving and planning for retirement, you will earn enough money from
Social Security to maintain your current lifestyle
b. Social Security was originally designed to be a supplemental income for people over the age of 65.
c. Because Social Security is a government program, it is guaranteed to be there when you retire
d. The average income from Social Security is about $40,000
6. If you are concerned about your investment losing money instead of appreciating, then you are
worried about ___________ risk.
7. As a young person, saving for your retirement is an example of a ____________ goal.
8. Diversification refers to
9. Why do people invest when risk is involved?
10. The Primary difference between an annuity and a 401(k) is
11. If your company has a retirement plan
a.
b.
c.
d.
You can wait until you are in your 40s to start participating without any costs.
You should sign up as soon as possible so your investment will start growing.
Only people who plan on retiring early need to participate in the company plan.
You should wait until your bills are paid before saving money for retirement.
12. The potential risk that you will lose our money due to a company going bankrupt is called
________________ risk.
13. The Best way to protect yourself from fraud risk it to
14. Which of the following events will decrease your retirement funds?
15. Which of the following statements is TRUE?
a. Only people who work for employers with retirement benefits can plan for retirement.
b. All companies contribute to retirement accounts for their employees.
c. Participating in company-sponsored accounts is mandatory in all situations.
d. Even though participating in company-sponsored accounts is voluntary, it is something that all
employees should do.
16. IRAs are
17. The HIGHEST percentage of income for people over age 65 comes from
18. Most IRAs are invested in
19. If you have an IRA, you are required to start drawing income from it at age
20. If you have a retirement account,
21. The risk that you have been tricked or deceived when making an investment is called
22. Which of the following is a characteristic of a Roth IRA? (Main deifference from traditional)
23. When investing, the basic rule is this: the GREATER the potential to gain higher earnings, the
24. A company sponsored plan where you determine how to invest your money is called a (n)
25. Sometimes people run low on money during retirement. Which of the following should you do first?