Test your knowledge of Retirement.
Question 1:
The Rule of Thumb for determining how much retirement income you will need is to figure on:
A – 50-60% of your pre-retirement income – false
B – 70-80% of your pre-retirement income – true
C – 80-90% of your pre-retirement income – false
Note: The Rule of Thumb for determining how much retirement income you will need is to figure on 70-80% of your pre-retirement income.
Question 2:
After you’ve had a Roth IRA for at least five tax years, you can withdraw investment earnings tax free if:
A – You are at least age 59 1/2 – false
B – You make the withdrawal in a year that you have paid qualified first-time home buying expenses (up to $10,000 lifetime cap) – false
C – You become disabled – false
D – All of the above – true
Note: After you’ve had a Roth IRA for at least five tax years, you can withdraw investment earnings tax free if you are at least age 59 1/2, you make the withdrawal in a year that you have paid qualified first-time home buying expenses (up to $10,000 lifetime cap), or you become disabled.