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1.
You will be penalized for withdrawing money from pension plans before age 73.
Choose wisely. There is only one correct answer.
False. You will be penalized if you withdraw your retirement money before age 59½.
2.
In general, bonds have more volatility and higher returns than either stocks or cash.
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False. While bonds may show more volatility than cash, stocks generally have higher returns and volatility than bonds or cash.
3.
If you still have a long time before you retire, you may want to consider _______.
Choose wisely. There is only one correct answer.
More aggressive long-term investments. The younger you are, the more risk you might be willing and able to assume with your investments.
4.
If you want the safety of low-volatility investments, you will have to accept ________ as well.
Choose wisely. There is only one correct answer.
Lower returns. As a rule, the lower the volatility of an investment, the lower the potential return.
5.
Long time horizons generally enable us to assume _______ short-term ones.
Choose wisely. There is only one correct answer.
More risk than. Time reduces risk.