Choose wisely. There is only one correct answer to each question.
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1.
When calculating your future retirement income needs, you must consider inflation.
True. After you have adjusted for inflation, you will have a true picture of the amount of income available for living purposes.
2.
People who retire early have less time to get their finances together than those who retire at normal retirement age do, and will likely need more money to fund their retirement.
True. This is because they will have to fund their retirement over more years than a person who retires at an older age.
3.
Imagine that you just retired. If your living expenses are $30,000 a year now, how much will you need to maintain your current standard of living 20 years from now?
More than $30,000. Because of inflation, it is a good chance you will need much more in 20 years to maintain your current lifestyle.
4.
The government has done its part to help you save for retirement by _______.
Allowing you to set up tax-deferred retirement accounts. Accounts such as 401(k) plans and individual retirement accounts (IRAs) grow tax-deferred.
5.
When determining your resources for retirement, what should you start with?
Determine how much income you will get from your current sources of income. The other courses of action should start after this.