Analysis Intermediate: Is Your Retirement Portfolio on Track?

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1.
When the Social Security Administration sends you your personal Social Security Statement, your estimated benefits will be stated in _______.
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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.
2.
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.
3.
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.
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.
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.