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.
Many people aim to supplement their retirement income with what percentage of their preretirement income?
25%. This is because as a retiree, they have Social Security and retirement savings income to rely on as well.
3.
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.
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.
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.