Choose wisely. There is only one correct answer to each question.
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1.
When you start saving for retirement early, you can ride out the various risks in the market better than you could if you started late.
True. A long time horizon ultimately smooths out the effects of risk.
2.
Starting a business after one retires can be an ideal choice for many retirees. Why?
All of the above. Experience, knowledge, and connections can all add up for older people wanting to strike out on their own.
3.
Which of the following is not among the jobs recommended by AARP as being suitable for those in retirement who wish to continue working?
Law enforcement paraprofessional. The other choices are among AARP's recommendations.
4.
You should wait until you retire to plan your budget because you can't know now what your expenses will be.
False. Waiting until you retire to plan your budget is a huge mistake, particularly since you will need money saved to afford retirement.
5.
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.
6.
Most people who work in retirement do so for the money.
True. While there are other reasons to retire, most do so for the income.