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.
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.
3.
If you are over 65 and you qualify for Social Security, you also qualify for _______.
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Medicare. Medicare is a health insurance program for those over 65.
4.
When prices of goods and services rise over time and eat into your money's purchasing power, that is called _______ risk.
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Inflation. Inflation risk is the risk that rising prices will make it harder to buy the things you need.
5.
People who retire early have less time to get their finances together than those who retire at normal retirement age do, and will likely need more money to fund their retirement.
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True. This is because they will have to fund their retirement over more years than a person who retires at an older age.