"Financial IQ" Quiz

"Financial IQ" Quiz

Import Concepts for Those Nearing Retirement
1. Couples age 65 have a 50/50 chance of at least one spouse living to what age?

82 85 88 92
2. What percent of long-term care benefits are paid to women?

36% 41% 52% 64%
3. Using the traditionally accepted “safe withdrawal rate”, how much monthly income will a $1,000,000 portfolio generate Year 1 of retirement (after-tax with 20% taxes)?

$1,525 $2,667 $3,333 $4,667
4. A market correction is defined as a 10% or more drop in the market. A bear market is a 20% decline. On average, how often do market corrections / bear markets occur?

Every 2 & 5 years Every 4 & 8 years Every 5 & 10 years Every 6 & 12 years
5. What is the median annual cost for a private room in an assisted living facility (ALF) vs. private room in a nursing home (in Florida)?

$22,000 vs. $54,650 $35,000 vs. $72,450 $48,000 vs. $100,375 $65,000 vs. $130,225
6. Currently, the top marginal tax rate is 37%, but for 50 years (1932 – 1982) the top marginal tax rate ranged from

15% - 24% 22% - 35% 32% - 48% 63% - 94%
7. What percentage of your retirement income should be set aside for out-of-pocket medical expenses?

3% 8% 15% 28%
8. According to the Trinity Study performed at Trinity University in 1998, what mix of stocks and bonds produced the best results for a 4% withdrawal rate in retirement?

100% stocks / 0% bonds 75% stocks / 25% bonds 50% stocks / 50% bonds 25% stocks / 75% bonds 0% stocks / 100% bonds
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