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.
If you find that your portfolio is not on track and you plan to retire in just two years, which typically should not be an option?
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Tweaking your portfolio so that it's more aggressive. You should generally get more aggressive only if your retirement is far enough away--say, 10 or more years off. Otherwise, you may be taking too much risk.
2.
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.
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.
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.
5.
You can receive Social Security benefits before you reach your full retirement age.
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True. You can, although they will be diminished.