Strategy Intermediate: Retirement Investing Strategies

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1.
Long time horizons generally enable us to assume _______ short-term ones.
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More risk than. Time reduces risk.
2.
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.
3.
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.
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 want the safety of low-volatility investments, you will have to accept ________ as well.
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Lower returns. As a rule, the lower the volatility of an investment, the lower the potential return.