Analysis Intermediate: Is Your Retirement Portfolio on Track?

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Choose wisely. There is only one correct answer to each question.

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1.
You can receive Social Security benefits before you reach your full retirement age.
Choose wisely. There is only one correct answer.
True. You can, although they will be diminished.
2.
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?
Choose wisely. There is only one correct answer.
Bond funds. Of all the choices, bond funds are the least aggressive.
3.
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.
4.
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.
5.
How often should you reevaluate whether your portfolio is on track to meet your retirement needs?
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Every few years. You don't need to go through this exercise each time you take a look at or rebalance your portfolio, but it's a good idea to run through the numbers every few years so that you're not caught by surprise when retirement comes.