Financial Planning Courses: Retirement

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1.
Which retirement plan is paid for by taxes on your earnings as opposed to you making contributions to it?
Choose wisely. There is only one correct answer.
Social Security. Social Security is a national program that is paid for through special taxes on workers' earnings.
2.
Why is it necessary to consider what inflation will do to your income?
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The effects of inflation will require that you use more money to maintain your current standard of living. If you want to keep up your current level of comfort, you will need to assess the impact of inflation on your nest egg.
3.
Investment risk is _______.
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The risk that your investments will not perform as well as expected. The other two choices are pitfalls to avoid, but they do not define investment risk.
4.
Why should you start thinking about your retirement years while you are still young?
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All of the above. All of these are reasons why you should get an early start on planning for your retirement.
5.
Social Security benefits are based on a number of things. Which of the following is NOT one of them?
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Your financial need. Financial need does not determine the benefits you get from Social Security. Your earnings and amount of time worked determine your benefits.