9. Retirement

Question 1

A pre-retiree is a person who is ____

Answer 1

older than 50 but younger than 65

Question 2

How do you obtain a healthy, wealthy retirement? (4)

Answer 2

1. always take all the free money on offer
2. get the best education you can afford and work as hard as you can
3. stay healthy so you are not forced to retire early
4. set aside at least 10% of your pre-tax paycheck for retirement

Question 3

What debt is worth paying off?

Answer 3

Credit card debt - causing high interest

Question 4

Bengen (1994) 4% rule

Answer 4

Make a withdrawal of 4% of your retirement in your first year, in the second year withdraw 4% + the inflation adjustment –> continue this trend and your retirement money should last 30_+ years

Question 5

Do not expect to _____

Answer 5

work in retirement

Question 6

Do not rely on_____

Answer 6

social security pension