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.
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.
2.
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.
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.
In general, bonds have more volatility and higher returns than either stocks or cash.
Choose wisely. There is only one correct answer.
False. While bonds may show more volatility than cash, stocks generally have higher returns and volatility than bonds or cash.
5.
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.