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Retirement Intermediate: Retirement Investing Strategies

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1.
The amount your investment changes up and down in value over time is known as ______.
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Volatility. The tendency for investment values to fluctuate up and down is known as volatility.
2.
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.
3.
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.
4.
Inflation means you will have more spending power in the future than you do today.
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False. Inflation leads to lower spending power in the future.
5.
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.