Retirement Planning Quiz

What is the average amount of money needed to retire comfortably?

• 3 million dollars

• 1 million dollars

• 2.5 million dollars

• 1.7 million dollars

What percentage of people consider themselves savers rather than investors?

• 74%

• 54%

• 84%

• 64%

Why are savings accounts not ideal for long-term wealth growth?

• They have high fees

• They offer low interest rates that don't keep up with inflation

• They are not insured

• They have withdrawal penalties

What is a key feature of 401k accounts that differentiates them from regular savings accounts?

• They have penalties for early withdrawal

• They offer higher interest rates

• They are managed by the government

• They allow for tax-free withdrawals

What is the general expert consensus on the percentage of pre-retirement income needed during retirement?

• 90%

• 80%

• 70%

• 60%

According to the 4% rule, how much should you have saved if you need $80,000 annually in retirement?

• 2.5 million dollars

• 2 million dollars

• 3 million dollars

• 1.6 million dollars

What is the 15-25-50% rule in financial planning?

• Save 15% of salary at age 25 with 50% in stocks

• Save 25% of salary at age 15 with 50% in bonds

• Save 15% of salary at age 50 with 25% in stocks

• Save 50% of salary at age 15 with 25% in stocks

By what age should you have saved an amount equivalent to your annual salary?

• 40

• 25

• 30

• 35

How many times your annual salary should you have saved by age 67?

• 4 times

• 6 times

• 8 times

• 10 times

What is the impact of compounding interest on retirement savings?

• It only affects savings in bonds

• It significantly increases the total savings over time

• It has no effect on savings

• It decreases the total savings