Choose wisely. There is only one correct answer to each question.
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1.
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.
2.
To help save Social Security, we may have to _______.
All of the above. All of these options may be necessary.
3.
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.
4.
Compounding helps your money grow quickly because ________.
It allows you to earn money on earned interest and on principal. The extra growth is made possible by the phenomenon of interest being earned on interest.
5.
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.