Analysis Intermediate: Is Your Retirement Portfolio on Track?

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1.
What's a fair figure to use as an expected return for bonds?
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5% per year. Intermediate-term bonds have returned 5% per year, on average, since 1926, according to Morningstar.
2.
To find out whether your retirement portfolio is on track, _______.
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Determine what your regular retirement income will be, excluding your income from your own savings. Since savings is much less predictable, you can instead focus on what your regular retirement income -- Social Security and your retirement plans -- will be.
3.
When calculating expected returns for stocks, what number would be fairest to use?
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10% per year. Though stocks have sometimes performed better during past periods, we recommend a more conservative number--the roughly 10% per year that stocks have returned since 1926.
4.
When planning for retirement, compare your expected pension and Social Security income with the amount of income you think you'll need. Then determine whether your current investments will cover the difference between the two figures.
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True. This is a good place to start.
5.
If your retirement is far away and you decide to switch to more aggressive investments to keep yourself on track, which of the following is least likely to help you?
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Bond funds. Of all the choices, bond funds are the least aggressive.