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.
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.
4.
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.
5.
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.