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.
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.
3.
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.
4.
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.
5.
If you still have a long time before you retire, you may want to consider _______.
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More aggressive long-term investments. The younger you are, the more risk you might be willing and able to assume with your investments.