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1.
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.
2.
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.
3.
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.
4.
Which of the following will you probably not need to cover during your retirement years?
Savings for the future. This is not needed because you are already retired, although it is certainly optional. You will continue to have expenses and taxes of various kinds, however.
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.