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Portfolios 102: Determining Retirement Needs

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1.
When calculating the expenses you will have during retirement, you should calculate them using _______.
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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.
2.
By examining your present mode of living and making adjustments, you can determine your retirement needs.
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True. By looking at your present lifestyle, you can determine what you will need to live on in retirement.
3.
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?
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Only current expenses and taxes. Saving for the future is not necessary, although some people do it for extra income.
4.
Your list of expenses for retirement should leave room for taxes.
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True. You want to be prepared at tax time.
5.
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).
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False. You can find out now by sending for the "Social Security Statement" (Form SSA-7004) from the Social Security Administration (SSA).