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.
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.
2.
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.
3.
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.
4.
When calculating expected returns for stocks, what number would be fairest to use?
Choose wisely. There is only one correct answer.
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.
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.