Strategy Intermediate:
Retirement Investing Strategies
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1.
If you want the safety of low-volatility investments, you will have to accept ________ as well.
Choose wisely. There is only one correct answer.
Low risk
Lower returns
Certificates of deposit
Lower returns. As a rule, the lower the volatility of an investment, the lower the potential return.
2.
You will be penalized for withdrawing money from pension plans before age 73.
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True
False
False. You will be penalized if you withdraw your retirement money before age 59½.
3.
The amount of money you invest in an asset depends on _______.
Choose wisely. There is only one correct answer.
Your tolerance for risk
Your time horizon
Both of the above
Both of the above. The way you allocate your money depends on your risk tolerance and time horizon.
4.
Long time horizons generally enable us to assume _______ short-term ones.
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More risk than
Less risk than
The same risk as
More risk than. Time reduces risk.
5.
An investment's volatility over the long term generally _______ compared to its volatility over the short term.
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Increases
Decreases
Stays the same
Decreases. Volatility generally decreases when comparing longer investment periods to shorter ones.
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