1. According to the Social Security Administration, what percentage of your income is Social Security designed to replace?

A. 100 percent
B. 75 percent
C. 50 percent
D. 40 percent

2. As a rule of thumb, at least what percentage of your gross (pre-tax) income should you try to set aside for retirement on a regular basis?1

A. 1 percent
B. 3 percent
C. 5 percent
D. 10 percent

3. Which of these steps is likely to have the most favorable impact in trying to meet your retirement goals?

A. Waiting for a major windfall of money or inheritance to help fund retirement

B. Saving money in accounts where all earnings are subject to current tax

 

C. Starting to invest as early as possible to benefit from compounding
D. Delaying saving to focus on other financial priorities like paying down debt

4. Which of these types of accounts should you consider using to save for retirement?

A. A workplace retirement plan, such as a 401(k) or 403(b) plan

B. An IRA

 

C. Annuities
D. All of the above

5. What is the best way to improve the return on your workplace retirement plan savings?

A. Take advantage of any matching contribution offered by your employer
C. Put all of the money to work in bond funds

B. Keep all of your money in cash-equivalent investments

 

D. Put money to work in the riskiest investments available

 

6. If you’re younger than 59 ½ and need cash to meet an immediate need, which of these sources should you avoid tapping?

A. Liquid savings accounts
B. Your 401(k) or IRA accounts
C. A home equity loan or line of credit

7. Which of these strategies should you pursue in the final years of working before you retire?

A. Begin making adjustments to your portfolio to protect it from the impact of negative moves in the markets

B. Move all of your investments into stocks and other risk assets

 

C. Begin drawing down retirement savings 
D. Stop setting aside money in your workplace retirement plans and IRAs