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Financial Planning Courses: Retirement

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1.
All of us face the risk that we will not be able to live independently when we are older. There are many ways to handle the costs of this risk. A particular type of insurance that can help pay for these costs is called _______.
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Long-term care insurance. Long-term care insurance is a special form of insurance that covers the costs of care over many years.
2.
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.
3.
Social Security benefits are based on the best 10 years of your lifetime earnings.
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False. Social Security retirement benefits are based upon your lifetime earnings recorded with the Social Security Administration.
4.
Why should you start thinking about your retirement years while you are still young?
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All of the above. All of these are reasons why you should get an early start on planning for your retirement.
5.
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.