Choose wisely. There is only one correct answer to each question.
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1.
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.
2.
You can receive Social Security benefits before you reach your full retirement age.
True. You can, although they will be diminished.
3.
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.
4.
If your retirement is far away and you decide to switch to more aggressive investments to keep yourself on track, which of the following is least likely to help you?
Bond funds. Of all the choices, bond funds are the least aggressive.
5.
How often should you reevaluate whether your portfolio is on track to meet your retirement needs?
Every few years. You don't need to go through this exercise each time you take a look at or rebalance your portfolio, but it's a good idea to run through the numbers every few years so that you're not caught by surprise when retirement comes.