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Retirement Intermediate:
Retirement Investing Strategies
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1.
An investment's volatility over the long term generally _______ compared to its volatility over the short term.
Choose wisely. There is only one correct answer.
Increases
Decreases
Stays the same
Decreases. Volatility generally decreases when comparing longer investment periods to shorter ones.
2.
The amount your investment changes up and down in value over time is known as ______.
Choose wisely. There is only one correct answer.
Rate of return
Volatility
Risk
Volatility. The tendency for investment values to fluctuate up and down is known as volatility.
3.
Long time horizons generally enable us to assume _______ short-term ones.
Choose wisely. There is only one correct answer.
More risk than
Less risk than
The same risk as
More risk than. Time reduces risk.
4.
If you want the safety of low-volatility investments, you will have to accept ________ as well.
Choose wisely. There is only one correct answer.
Low risk
Lower returns
Certificates of deposit
Lower returns. As a rule, the lower the volatility of an investment, the lower the potential return.
5.
You will be penalized for withdrawing money from pension plans before age 73.
Choose wisely. There is only one correct answer.
True
False
False. You will be penalized if you withdraw your retirement money before age 59½.
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