Strategy Intermediate: Retirement Investing Strategies

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1.
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.
2.
Inflation means you will have more spending power in the future than you do today.
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False. Inflation leads to lower spending power in the future.
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.
An investment's volatility over the long term generally _______ compared to its volatility over the short term.
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Decreases. Volatility generally decreases when comparing longer investment periods to shorter ones.
5.
Long time horizons generally enable us to assume _______ short-term ones.
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More risk than. Time reduces risk.