Course Quiz - Financial Fitness Center

1.

Why does budgeting still matter after you have stopped saving for retirement?

You may need to adjust your spending rate at times during retirement.

You need to continue saving money for retirement even when you're retired.

You should pinch pennies during retirement.

It doesn't matter, actually.

You may need to adjust your spending rate at times during retirement. Especially during market downturns.

2.

Once you're retired, you won't need to adjust your spending rate.

True

False

False. Market downturns and unexpected expenses can necessitate adjusting your spending rate.

3.

What types of activities form the base of the investment pyramid?

The most important activities for investment success

The least important activities for investment success

Broccoli and brown rice

The most important activities for investment success. The other parts will depend on these.

4.

Asset allocation means _______.

Dividing your portfolio among stocks, bonds, and cash investments

Changing the holdings in your portfolio

Setting up your portfolio

Dividing your portfolio among stocks, bonds, and cash investments. Although there is some truth to the other options, this one is the basic definition of asset allocation.

5.

Which statement is false?

By quantifying each of your goals, you may find that it is not possible to achieve them all

Each goal likely carries its own time horizon, which in turn will dictate what types of investments you hold and where

Once you've set your baseline goals and quantified how much they'll cost, checking your progress toward them can serve as the ultimate financial checkup

By quantifying each of your goals, you may find that it is not possible to achieve them all. But it's better to know that early on, so you can prioritize.

Test your knowledge

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