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1.
Before you retire, you must cover your current expenses, your taxes, and savings for future needs. In retirement, however, what will you need to cover?
Only current expenses and taxes. Saving for the future is not necessary, although some people do it for extra income.
2.
A list of retirement expenses will include many of the same things you spend money on right now.
True. Some expenses, such as medical bills, may be higher in your later years.
3.
A defined contribution plan provides you a lump sum of money at retirement.
True. If you like, you can use this money as retirement income that is steadily spread out.
4.
Many believe that you will need _______ of your pre-retirement income to survive in retirement.
65-75 percent. Although estimates certainly vary, this figure is commonly accepted.
5.
When calculating the expenses you will have during retirement, you should calculate them using _______.
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.