Choose wisely. There is only one correct answer to each question.
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1.
At what age are your Social Security benefits free from federal income tax?
Never. Your benefits are subject to tax based on your income, not age. If your income is above a certain limit, your Social Security benefits may be taxed.
2.
What is meant by "living below your means"?
Living below your means is a way of life using discipline to make sure you don't squander money. Living below your means is a way of life that allows you to have the things you want, but never be wasteful.
3.
Who has the best chance of getting the most from growth and compounding of one's money?
A 20-year-old. As a rule, the younger you are when you start saving for your retirement, the more you will gain from the growth and compounding of your money.
4.
Which of the following is true regarding choosing a line of work in retirement?
It's best to begin deciding by asking yourself what you are good at and what you like doing. This is really a matter of common sense.
5.
If you're planning on starting new hobbies after you retire, you may find you're greatly disappointed.
True. Hobbies are much more fulfilling to people over 65 if the activities are a continuation of their interests in earlier years; so cultivate those interests now.
6.
Which of the following is true of the majority of people who work in retirement?
The majority work primarily for financial reasons. The other two choices are significant factors, but earning extra money is the primary reason people work during retirement.