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

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More risk than

Less risk than

The same risk as

More risk than. Time reduces risk.

If you live longer than expected, you may face a number of different risks associated with your elder years. Which risk refers specifically to living longer than expected?

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Inflation risk

Longevity risk

Healthcare costs risk

Long-term care risk

Longevity risk. Longevity risk is the risk that you will live longer than is expected. It can lead to a lot of challenges if it is not planned for.

Social Security is a program that pays benefits for _______.

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Healthcare needs

Retirement

Food

Retirement. Social Security is a retirement program.

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

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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.

The government has done its part to help you save for retirement by _______.

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Allowing you to set up tax-deferred retirement accounts

Reducing taxes on the elderly

Increasing monthly payments to those who have high living expenses

Allowing you to set up tax-deferred retirement accounts. Accounts such as 401(k) plans and individual retirement accounts (IRAs) grow tax-deferred.

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