Financial Planning Courses: Retirement

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1.
When you start saving for retirement early, you can ride out the various risks in the market better than you could if you started late.
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True. A long time horizon ultimately smooths out the effects of risk.
2.
Over a long period, inflation reduces what a person with a fixed income can afford to buy.
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True. Financial planners suggest that you begin saving for retirement as early as possible to offset the effects of inflation.
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.
Social Security is a program that pays benefits for _______.
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Retirement. Social Security is a retirement program.
5.
Which type of retirement account would you set up and manage on your own?
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Individual retirement account. IRAs are accounts for individuals and are typically not related to one's job.