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Portfolios 102: Determining Retirement Needs

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1.
A list of retirement expenses will include many of the same things you spend money on right now.
Choose wisely. There is only one correct answer.
True. Some expenses, such as medical bills, may be higher in your later years.
2.
When calculating the expenses you will have during retirement, you should calculate them using _______.
Choose wisely. There is only one correct answer.
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.
3.
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).
4.
Many professionals in the retirement field believe that you will need about two-thirds of your pre-retirement income to survive in retirement.
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True. Estimates vary, but two-thirds is commonly accepted.
5.
Which of the following will you probably not need to cover during your retirement years?
Choose wisely. There is only one correct answer.
Savings for the future. This is not needed because you are already retired, although it is certainly optional. You will continue to have expenses and taxes of various kinds, however.