All Courses > Portfolios > 300
Portfolios 310: How to Withdraw from Your Portfolio in Retirement

Test your knowledge

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

0%
Keep studying!
Review your answers below to learn more.
1.
In terms of portfolio withdrawal, what does a 50% confidence level mean?
Choose wisely. There is only one correct answer.
There's a 50% chance that your portfolio will expire before you do. For some, a 95% or 100% confidence level is crucial: You want your withdrawal rate to survive most worst-case scenarios. Others may accept a lower probability of success.
2.
Which statement is true?
Choose wisely. There is only one correct answer.
Your spending rates in retirement will likely change over time. Your spending rates may rise or fall. That's why you'll need to monitor and adjust your spending amounts throughout your retirement.
3.
To add up the value of your retirement portfolio so that you can determine how much to spend each year, you should include _______.
Choose wisely. There is only one correct answer.
All taxable and tax-deferred accounts. You should ideally include all from both types, since this is when you will be using up your money.
4.
Many retirees have sources of income that are fixed, such as Social Security or pensions. How does inflation affect their purchasing power?
Choose wisely. There is only one correct answer.
It depends on the source. Many sources of fixed income lose their purchasing power due to inflation. But some of them get adjusted annually for the rate of inflation, thus keeping abreast of it.
5.
If you aren't satisfied with your withdrawal rate from your portfolio, you can _______.
Choose wisely. There is only one correct answer.
Any of the above. Any of these options -- or more than one of them -- would help you get more satisfaction.
6.
To find out how long you will be using your retirement portfolio, you need to ______.
Choose wisely. There is only one correct answer.
Subtract your expected retirement age from your life expectancy. This is the simplest way to do it.