Choose wisely. There is only one correct answer to each question.
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1.
How often should you reevaluate whether your portfolio is on track to meet your retirement needs?
Every few years. You don't need to go through this exercise each time you take a look at or rebalance your portfolio, but it's a good idea to run through the numbers every few years so that you're not caught by surprise when retirement comes.
2.
When planning for retirement, compare your expected pension and Social Security income with the amount of income you think you'll need. Then determine whether your current investments will cover the difference between the two figures.
True. This is a good place to start.
3.
When calculating expected returns for stocks, what number would be fairest to use?
10% per year. Though stocks have sometimes performed better during past periods, we recommend a more conservative number--the roughly 10% per year that stocks have returned since 1926.
4.
To find out whether your retirement portfolio is on track, _______.
Determine what your regular retirement income will be, excluding your income from your own savings. Since savings is much less predictable, you can instead focus on what your regular retirement income -- Social Security and your retirement plans -- will be.
5.
If your retirement is far away and you decide to switch to more aggressive investments to keep yourself on track, which of the following is least likely to help you?
Bond funds. Of all the choices, bond funds are the least aggressive.
