Quiz: Are you Saving Enough for Retirement?
by Staff
Saving for your retirement is very important and should be planned very carefully. Take this quiz to familiarize yourself with tips to help you plan your retirement savings.

If you are eligible to draw U.S. Social Security benefits when you retire, will they be enough to live on?

  • no
  • yes
  • maybe

What is net worth?

  • total assets minus total debt
  • total assets
  • total debt

Which is NOT an example of an asset?

  • savings bonds
  • leased car
  • jewelry

How much money will you spend monthly during retirement?

  • 50 to 60 percent of your pretax pre-retirement income
  • 60 to 70 percent of your pretax pre-retirement income
  • 70 to 90 percent of your pretax pre-retirement income

What is a 401(k)?

  • retirement saving account
  • laboratory test
  • marathon

What is a Roth IRA?

  • traditional IRA
  • employer-sponsored retirement plan
  • individual retirement plan

What is compound interest?

  • interest earned on the principal amount plus its accrued amount
  • interest on the principal only
  • interest that slowly decreases over time

Why shouldn't you invest all of your retirement funds in one place?

  • It's not safe.
  • It's hard to manage
  • It's hard to get your money out.

What are bonds?

  • interest-paying debt security
  • fixed-term investment
  • both of the above

How much of your investment portfolio should be in bonds?

  • 20 percent
  • 50 percent
  • the same percentage as your age

What are stocks?

  • very old types of savings bonds
  • unit of ownership in a corporation
  • debt investment

How does the risk of treasury bills compare to stock investments?

  • They're lower risk.
  • They're higher risk.
  • They're the same risk.

What level of risk is associated with stock investments?

  • low
  • moderate
  • high

How do you diversify a stock portfolio?

  • Invest in a range of industries.
  • Invest in a range of countries.
  • both of the above

If you are a homeowner with a mortgage, what should you do if interest rates are falling?

  • Refinance your mortgage
  • Pay off your mortgage
  • Increase your line of credit.

If you do refinance and have a lower monthly mortgage payment, what should you do with the extra money?

  • Increase your retirement savings contribution.
  • Add on to your house.
  • Take a vacation.

How can you economize on investment fees?

  • Shop around for the lowest fees on your investment products.
  • Only put your money in government savings bonds and certificates of deposit.
  • Make stock market trades yourself.

What's the best course of action if you want to increase your retirement savings?

  • Live very frugally.
  • Keep working.
  • Invest in stocks.

Which of the following is usually covered by long-term care insurance?

  • hospital stays
  • in-home care
  • specialized doctor visits

How does long-term care insurance protect your retirement savings?

  • You won't have to spend your savings on daily nursing care in your home.
  • You won't have to spend your savings on adult day care.
  • both of the above