POP QUIZ: Do You Know Enough About Your Retirement Plan?

Directions: pop-quiz

Listed below are 11 questions that are crucial to ask yourself when thinking about retirement planning.  For each question answer on a scale of 1 to 5 (with 1 meaning “I don’t know anything about this subject” to 5 meaning “I am fully confident with my knowledge/answers in this area).

1. Have I projected my retirement income needs and sources?

Answer: (least confident)    1           2           3           4            5    (most confident)

2. Am I currently saving enough money to meet my retirement needs?

Answer: (least confident)    1           2           3           4            5    (most confident)

3. Does my/my spouse’s employer offer a retirement plan?  If so, what type of plan is it and am I/my spouse maximizing the benefits of that plan?

Answer: (least confident)    1           2           3           4            5    (most confident)

4.  Do I/my spouse have retirement savings outside of my employer’s retirement plan?  Are there sufficient assets in my/my spouse’s employer’s retirement plan to retire on it?

Answer: (least confident)    1           2           3           4            5    (most confident)

5. Do I understand the difference between “a tax deduction” and “compound growth?”

Answer: (least confident)    1           2           3           4            5    (most confident)

6.  Do I understand the effects of taxes and inflation on my savings and retirement income?

Answer: (least confident)    1           2           3           4            5    (most confident)

7.  Do I have a specific distribution strategy for my retirement funds?

Answer: (least confident)    1           2           3           4            5    (most confident)

8.  Do I understand the impact of long-term health care as it impacts my retirement plan?

Answer: (least confident)    1           2           3           4            5    (most confident)

9. Do I understand the effects of market volatility on my retirement plan?

Answer: (least confident)    1           2           3           4            5    (most confident)

10.  Have I calculated the risk of outliving my money?

Answer: (least confident)    1           2           3           4            5    (most confident)

11.  Do I understand the impact that average rates of return have on my money?

Answer: (least confident)    1           2           3           4            5    (most confident)

Directions:  Add up the total number of points from each of your answers.

Results: 

Score of 0-44: Congratulations on taking the first steps towards confident retirement!  Retirement planning can be complicated – a certified financial planner can help you navigate the risks (link to risk article) and put together a winning strategy.  Contact us today to set up your first appointment.

Score of 44 +:  You are in-the-know for your retirement plan!  Remember to schedule an annual appointment with your financial planner to fine-tune your retirement plan each year and any time your financial situation changes.

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