Strategy Intermediate: Retirement Investing Strategies

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1.
Long time horizons generally enable us to assume _______ short-term ones.
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More risk than. Time reduces risk.
2.
In the long term, bonds and cash generally have lower returns than stocks.
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True. In the long term, stocks tend to have higher returns than other investments.
3.
The goal of a tax-managed fund is tax efficiency.
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True. The goal of a tax-managed fund is tax efficiency.
4.
The amount your investment changes up and down in value over time is known as ______.
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Volatility. The tendency for investment values to fluctuate up and down is known as volatility.
5.
You will be penalized for withdrawing money from pension plans before age 73.
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False. You will be penalized if you withdraw your retirement money before age 59½.