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1.
If you still have a long time before you retire, you may want to consider _______.
Choose wisely. There is only one correct answer.
More aggressive long-term investments. The younger you are, the more risk you might be willing and able to assume with your investments.
2.
Inflation means you will have more spending power in the future than you do today.
Choose wisely. There is only one correct answer.
False. Inflation leads to lower spending power in the future.
3.
Putting off payment of your taxes until later is known as _______.
Choose wisely. There is only one correct answer.
Tax deferral. This is advantageous when it comes to retirement planning.
4.
The amount your investment changes up and down in value over time is known as ______.
Choose wisely. There is only one correct answer.
Volatility. The tendency for investment values to fluctuate up and down is known as volatility.
5.
The amount of money you invest in an asset depends on _______.
Choose wisely. There is only one correct answer.
Both of the above. The way you allocate your money depends on your risk tolerance and time horizon.