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Long time horizons generally enable us to assume _______ short-term ones.

More risk than

Less risk than

The same risk as

More risk than. Time reduces risk.

Why is it necessary to consider what inflation will do to your income?

Inflation increases the taxes that are taken out of your paychecks.

Inflation alters the dividends and interest that investments pay you.

The effects of inflation will require that you use more money to maintain your current standard of living.

It is not necessary to take inflation into account.

The effects of inflation will require that you use more money to maintain your current standard of living. If you want to keep up your current level of comfort, you will need to assess the impact of inflation on your nest egg.

A financial planning professional can help you manage your money in retirement.

True

False

True. Find one who shares your concern with longevity risk.

Many retirement plans are tax-deferred. What does tax-deferred mean?

The earnings are taxed at the end of the year.

Nothing in the retirement plan is taxed, ever.

The earnings that build up in them are not taxed until you start making withdrawals.

None of the above

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.

If you are over 65 and you qualify for Social Security, you also qualify for _______.

Medicaid

Medicare

Disability

Medicare. Medicare is a health insurance program for those over 65.