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Financial Planning Courses: Retirement

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1.
Social Security is a program that pays benefits for _______.
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Retirement. Social Security is a retirement program.
2.
Why would a 60-year-old feel more urgency about planning for retirement than a 20-year-old would?
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A 60-year-old has less time to build up a nest egg. This is what creates the sense of urgency.
3.
Which type of retirement account would you set up and manage on your own?
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Individual retirement account. IRAs are accounts for individuals and are typically not related to one's job.
4.
Inflation risk, which is the risk that rising prices will erode your money's purchasing power, is a challenge for retired people because _______.
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They usually live on a fixed income. Fixed incomes don't change, so when prices rise, that affects the purchasing power of retired people's money.
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.