Strategy Intermediate: Retirement Investing Strategies

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.
The amount of money you invest in an asset depends on _______.
Choose wisely. There is only one correct answer.
Both of the above. The way you allocate your money depends on your risk tolerance and time horizon.
2.
In the long term, bonds and cash generally have lower returns than stocks.
Choose wisely. There is only one correct answer.
True. In the long term, stocks tend to have higher returns than other investments.
3.
Inflation means you will have more spending power in the future than you do today.
Choose wisely. There is only one correct answer.
False. Inflation leads to lower spending power in the future.
4.
The amount your investment changes up and down in value over time is known as ______.
Choose wisely. There is only one correct answer.
Volatility. The tendency for investment values to fluctuate up and down is known as volatility.
5.
Putting off payment of your taxes until later is known as _______.
Choose wisely. There is only one correct answer.
Tax deferral. This is advantageous when it comes to retirement planning.