Choose wisely. There is only one correct answer to each question.
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1.
If you find that your portfolio is not on track and you plan to retire in just two years, which typically should not be an option?
Tweaking your portfolio so that it's more aggressive. You should generally get more aggressive only if your retirement is far enough away--say, 10 or more years off. Otherwise, you may be taking too much risk.
2.
When the Social Security Administration sends you your personal Social Security Statement, your estimated benefits will be stated in _______.
Today's dollars. Your benefits will be stated in today's dollars, per month. However, Social Security benefits rise with inflation; therefore, they will likely be higher when you finally retire.
3.
You can receive Social Security benefits before you reach your full retirement age.
True. You can, although they will be diminished.
4.
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.
5.
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.
