Strategy Intermediate: Retirement Investing Strategies

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1.
You will be penalized for withdrawing money from pension plans before age 73.
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False. You will be penalized if you withdraw your retirement money before age 59½.
2.
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.
3.
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.
4.
The amount your investment changes up and down in value over time is known as ______.
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Volatility. The tendency for investment values to fluctuate up and down is known as volatility.
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.