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1.
Your list of expenses for retirement should leave room for taxes.
True. You want to be prepared at tax time.
2.
When calculating the expenses you will have during retirement, you should calculate them using _______.
Inflation-adjusted dollars. Prices rise over time due to inflation; you must therefore adjust your expenses for inflation. An inflation table factor or a financial calculator can help you do that.
3.
Which of the following will you probably not need to cover during your retirement years?
Savings for the future. This is not needed because you are already retired, although it is certainly optional. You will continue to have expenses and taxes of various kinds, however.
4.
Many believe that you will need _______ of your pre-retirement income to survive in retirement.
65-75 percent. Although estimates certainly vary, this figure is commonly accepted.
5.
A defined contribution plan provides you a lump sum of money at retirement.
True. If you like, you can use this money as retirement income that is steadily spread out.
