September 9


Cheating on Tests

It’s quiz time. For those of you who faithfully read my weekly articles, you should do great. Those new to the Retirement Revolution are going to learn some pretty mind-blowing facts.

Note: The answers follow each question. No cheating!  I was trying to figure out how to make sure you don’t peak at the answer by mistake.  So I tried to be creative.  You will see what I mean below.

1. What did the stock market return the 12 months after the bottom of the 2008 real estate and stock market crash?

A. -30%
B. +5%
C. -10%
D. +49%

Answer: One letter after c (otherwise known as d)

2. What did the stock market return, per year, in the 1990’s?

A. 5%
B. 18%
C. 1%
D. 10%

Answer: Two letters before d

3. What is the average return for stocks from 1800-1900 (accounting for inflation)?

A. 5%
B. 3%
C. 10%
D. 0%

Answer: One letter before d

4. What is the average return for stocks from 1900-2000?

A. 4%
B. 10%
C. 0%
D. 12%

Answer: Two letters before d

5. At what age should most people stop investing money in stocks and bonds?

A. 60
B. 70
C. 80
D. 90
E. Never

Answer: One letter after d

6. How often do “most economists” predict a recession?

A. Every ten years
B. Every five years
C. Every three years
D. Basically every year

Answer: One letter after c

7. Why do many money managers hesitate to encourage clients to spend?

A. They don’t want them to run out of money.
B. Portfolios perform better when you don’t take out any money.
C. They are jealous of all the fun you are having with the money.
D. They get paid based on how much money is in the account.

Answer: Two letters after b

8. How much do I need to watch financial news channels to be informed enough to make good investment decisions?

A. One hour a day.
B. One hour a week.
C. A few minutes here and there.
D. Never.

Answer: One letter after c

9. How much more money do you receive for every year you wait to collect social security?

A. 5%
B. 0%
C. 6%
D. 8%

Answer: Two letters after b

10. When will social security go bankrupt?

A. In the next ten years.
B. In 10-20 years
C. In 20-30 years
D. Not in your lifetime

Answer: One letter after c

11. From your late forties to your late seventies, how much less money do people spend on average?

A. The same
B. 10% less
C. 40% less
D. 18% less

Answer: Two letters after a

12. When does it make sense to use some of your 401k to pay off your mortgage?

A. If you are about to retire.
B. If you plan on living there for the rest of your life.
C. If it would make you feel better and more secure.
D. Basically never. The taxes are terrible.

Answer: Two letters after b

13. You are getting $2000 a month in Social Security. Your spouse is getting $2500. If you spouse were to die, how much money would you continue to receive?

A. $2000
B. $4500
C. $2500
D. $2250

Answer: One letter before d

14. How many retirees are dying with more money than they’ve ever had before?

A. 5%
B. 33%
C. 0%
D. 50%

Answer: Two letters before d

15. How many Americans are able to maintain their standard of living once retired?

A. 48%
B. 0%
C. 74%
D. 15%

Answer: One letter before b

16. Which of the following steps is NOT a part of the Retirement Revolution?

A. Create a budget
B. Invest your savings in a diversified portfolio of stocks and bonds with at least half the money in stocks.
C. Spend 5% of the account value each year.
D. Use the money! The 5% withdrawal, historically speaking, has never led to someone running out of money.
E.  Invest all of your money in Bitcoin.

Answer: One letter after d

17. Why is the Retirement Revolution awesome?

A. It helps you spend the perfect balance of too much and too little.
B. It reduces worry and increases fun!
C. It gives you the financial rules and parameters by which you can live your retired life.
D. It harnesses the incredible power of diversified portfolios of stocks and bonds.
E. It might help you to spend more, and worry less.

Answer: All of the above

How did you do? Share this with friends to see if they can do any better.

Be Blessed,


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