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Financial Planning Courses: Retirement

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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.
Inflation risk, which is the risk that rising prices will erode your money's purchasing power, is a challenge for retired people because _______.
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They usually live on a fixed income. Fixed incomes don't change, so when prices rise, that affects the purchasing power of retired people's money.
3.
Many retirement plans are tax-deferred. What does tax-deferred mean?
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The earnings that build up in them are not taxed until you start making withdrawals. This enables your retirement plan to grow more every year.
4.
When calculating your future retirement income needs, you must consider inflation.
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True. After you have adjusted for inflation, you will have a true picture of the amount of income available for living purposes.
5.
Social Security benefits are based on financial need.
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False. Anyone who pays Social Security taxes can collect Social Security benefits if they have enough credits.