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Financial Planning Courses: Retirement

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1.
Investment risk is _______.
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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.
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.
Over a long period, inflation reduces what a person with a fixed income can afford to buy.
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True. Financial planners suggest that you begin saving for retirement as early as possible to offset the effects of inflation.
4.
If you are over 65 and you qualify for Social Security, you also qualify for _______.
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Medicare. Medicare is a health insurance program for those over 65.
5.
Who has the best chance of getting the most from growth and compounding of one's money?
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A 20-year-old. As a rule, the younger you are when you start saving for your retirement, the more you will gain from the growth and compounding of your money.