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1.
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.
2.
Your list of expenses for retirement should leave room for taxes.
True. You want to be prepared at tax time.
3.
When calculating the expenses that you will have during retirement, what is the problem with expressing them in today's dollars?
Your expenses in retirement may be different than they are now. Most expenses will increase due to inflation and should therefore be adjusted for it.
4.
By examining your present mode of living and making adjustments, you can determine your retirement needs.
True. By looking at your present lifestyle, you can determine what you will need to live on in retirement.
5.
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.