Strategy Intermediate: Retirement Investing Strategies

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1.
The amount of money you invest in an asset depends on _______.
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Both of the above. The way you allocate your money depends on your risk tolerance and time horizon.
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.
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.
4.
Putting off payment of your taxes until later is known as _______.
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Tax deferral. This is advantageous when it comes to retirement planning.
5.
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.