Test your knowledge

Choose wisely. There is only one correct answer to each question.

Keep studying!

Review your answers below to learn more.

When calculating the expenses that you will have during retirement, what is the problem with expressing them in today's dollars?

Choose wisely. There is only one correct answer.

Your expenses in retirement will always be higher

Your expenses in retirement may be different than they are now

There is no problem; it is perfectly accurate to express them in today's dollars?

Your expenses in retirement may be different than they are now. Most expenses will increase due to inflation and should therefore be adjusted for it.

Your expenses in retirement will be the same amount that they are today.

Choose wisely. There is only one correct answer.

True

False

False. While you will have the same kinds of expenses, the amounts will shift.

To find out how much Social Security benefits you are entitled to, you must wait until shortly before retirement to contact the Social Security Administration (SSA).

Choose wisely. There is only one correct answer.

True

False

False. You can find out now by sending for the "Social Security Statement" (Form SSA-7004) from the Social Security Administration (SSA).

By examining your present mode of living and making adjustments, you can determine your retirement needs.

Choose wisely. There is only one correct answer.

True

False

True. By looking at your present lifestyle, you can determine what you will need to live on in retirement.

Once retired, you will not need to pay taxes.

Choose wisely. There is only one correct answer.

True

False

False. In most cases, you will continue to have to pay taxes.

© Copyright 2024 Morningstar, Inc. All rights reserved. Morningstar, the Morningstar logo, Morningstar.com, Morningstar Tools are either trademark or service marks of Morningstar, Inc. In addition, we encourage you to read this important disclosure.