What is the goal of retirement income planning?
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Wrong!
Retirement income planning ensures retirees have sustainable income for their lifetime.
What is a common withdrawal strategy in retirement?
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Wrong!
The 4% rule suggests withdrawing 4% of retirement savings annually to sustain income.
Why is longevity risk a concern?
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Longevity risk is the possibility of outliving one’s retirement savings.
What is an annuity used for?
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Annuities can provide guaranteed income during retirement.
Which income source is guaranteed for life?
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Wrong!
Social Security provides a reliable income stream that lasts for a retiree’s lifetime.
How does inflation impact retirement income?
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Inflation erodes purchasing power, requiring income to increase over time.
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What is a diversified income strategy?
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Wrong!
It combines various income sources to reduce risk and ensure stability.
Why consider delaying Social Security benefits?
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Delaying benefits increases the monthly payout amount.
What is a spending strategy in early retirement?
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Wrong!
Bucket strategies segment funds for short-, medium-, and long-term use.