What is the main goal of retirement planning?
Retirement planning aims to ensure financial security and a comfortable lifestyle post-retirement.
Which of the following is a common retirement savings vehicle?
401(k) plans are employer-sponsored retirement accounts allowing pre-tax contributions.
Why is compound interest important in retirement planning?
Compound interest allows your investments to grow over time by earning interest on interest.
Which factor most affects how much you need for retirement?
Lifestyle choices determine the level of income required after retirement.
What is an IRA?
An IRA is an individual retirement account allowing tax-advantaged retirement savings.
What age can you begin withdrawing from a traditional IRA without penalty?
Withdrawals from a traditional IRA can begin without penalty at age 59½.
Loading Questions...
What is the purpose of diversification in a retirement portfolio?
Diversification reduces risk by spreading investments across various asset classes.
What is a required minimum distribution (RMD)?
RMDs are the minimum amounts you must withdraw annually from retirement accounts starting at a certain age.
What is a benefit of starting retirement savings early?
The earlier you begin saving, the more time your investments have to grow and compound.