Analysis Intermediate: Is Your Retirement Portfolio on Track?

Test your knowledge

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

0%
Keep studying!
Review your answers below to learn more.
1.
To find out whether your retirement portfolio is on track, _______.
Choose wisely. There is only one correct answer.
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.
2.
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.
Choose wisely. There is only one correct answer.
True. This is a good place to start.
3.
When the Social Security Administration sends you your personal Social Security Statement, your estimated benefits will be stated in _______.
Choose wisely. There is only one correct answer.
Today's dollars. Your benefits will be stated in today's dollars, per month. However, Social Security benefits rise with inflation; therefore, they will likely be higher when you finally retire.
4.
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?
Choose wisely. There is only one correct answer.
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.
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?
Choose wisely. There is only one correct answer.
Bond funds. Of all the choices, bond funds are the least aggressive.