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Retirement Intermediate:
Retirement Investing Strategies
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1.
Putting off payment of your taxes until later is known as _______.
Choose wisely. There is only one correct answer.
Tax efficiency
Unrelated business income
Tax deferral
Tax deferral. This is advantageous when it comes to retirement planning.
2.
The amount of money you invest in an asset depends on _______.
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Your tolerance for risk
Your time horizon
Both of the above
Both of the above. The way you allocate your money depends on your risk tolerance and time horizon.
3.
Long time horizons generally enable us to assume _______ short-term ones.
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More risk than
Less risk than
The same risk as
More risk than. Time reduces risk.
4.
The amount your investment changes up and down in value over time is known as ______.
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Rate of return
Volatility
Risk
Volatility. The tendency for investment values to fluctuate up and down is known as volatility.
5.
In general, bonds have more volatility and higher returns than either stocks or cash.
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True
False
False. While bonds may show more volatility than cash, stocks generally have higher returns and volatility than bonds or cash.
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