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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.
Many professionals in the retirement field believe that you will need about two-thirds of your pre-retirement income to survive in retirement.
True. Estimates vary, but two-thirds is commonly accepted.
3.
When calculating the expenses that you will have during retirement, what is the problem with expressing 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.
4.
Before you retire, you must cover your current expenses, your taxes, and savings for future needs. In retirement, however, what will you need to cover?
Only current expenses and taxes. Saving for the future is not necessary, although some people do it for extra income.
5.
A defined contribution plan provides you _______ at retirement.
A lump sum of money. You are given a lump sum of money, but you can convert it into an annuity if you wish.
