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Financial Planning Courses: Retirement

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1.
It is possible to have your employer add its own money to a retirement account.
Choose wisely. There is only one correct answer.
True. If you have a 401k plan, your employer might make contributions to it on your behalf. This is one reason 401k plans are so popular.
2.
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.
3.
Social Security benefits are based on a number of things. Which of the following is NOT one of them?
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Your financial need. Financial need does not determine the benefits you get from Social Security. Your earnings and amount of time worked determine your benefits.
4.
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.
5.
When you start saving for retirement early, you can ride out the various risks in the market better than you could if you started late.
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True. A long time horizon ultimately smooths out the effects of risk.