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Retirement Intermediate: Retirement Investing Strategies

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1.
In the long term, bonds and cash generally have lower returns than stocks.
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True. In the long term, stocks tend to have higher returns than other investments.
2.
You will be penalized for withdrawing money from pension plans before age 73.
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False. You will be penalized if you withdraw your retirement money before age 59½.
3.
Long time horizons generally enable us to assume _______ short-term ones.
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More risk than. Time reduces risk.
4.
An investment's volatility over the long term generally _______ compared to its volatility over the short term.
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Decreases. Volatility generally decreases when comparing longer investment periods to shorter ones.
5.
If you want the safety of low-volatility investments, you will have to accept ________ as well.
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Lower returns. As a rule, the lower the volatility of an investment, the lower the potential return.