eFinancial Portals

How much do you know about planning for your retirement

Early retirement planning is vital to your success during retirement years.  Those who have not planned at all often learn that they will need to continue to work beyond their retirement years in order to make ends meet.  Those who take a proactive approach to retirement planning and preparation will enjoy their retirement years as a result of taking the appropriate steps earlier on in their careers.  Answer the following True or False questions to determine just how much you know about retirement:

1. After I retire, I understand that some of my expenses will remain the same or go down, while other expenses will likely go up. For example, my mortgage will probably go-down as I may have paid it off, however, my medical expenses may go up. My post-retirement income will need to be 75% or more of what I currently earn.

   True

   False

2. Because I will be living on a fixed income during my retirement years, I should adjust my current expenses for inflation.

   True

   False

3. My 401(k) plan is tax-free

   True

   False

4. Because I currently participate in my employer’s 401(K) or other employer-sponsored retirement plan, I cannot contribute to an IRA retirement plan at the same time.

   True

   False

5. With a Taxable Investment Account, long-term capital gains and qualified dividends are taxed at a much lower rate than normal income.

   True

   False

6. Most people rely on their social security to pay all of their retirement expenses.

   True

   False