Course Quiz - Financial Fitness Center

1.

Why should you start thinking about your retirement years while you are still young?

Your health might be poor in your elder years.

You will need enough money to last for the rest of your life.

They could be a large portion of your life.

All of the above

All of the above. All of these are reasons why you should get an early start on planning for your retirement.

2.

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.

3.

Investment risk is _______.

The risk that you have chosen the wrong investments

The risk of putting all your eggs in one basket

The risk that your investments will not perform as well as expected

The risk that your investments will not perform as well as expected. The other two choices are pitfalls to avoid, but they do not define investment risk.

4.

Which type of retirement account would you set up and manage on your own?

Individual retirement account

401k

Social Security

403b

Individual retirement account. IRAs are accounts for individuals and are typically not related to one's job.

5.

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.

Test your knowledge

Choose wisely. There is only one correct answer to each question.