1.Might it actually affect your spending habits now to think about how $1 at age 25, if invested, could easily be $32 at age 70? Explain whether it might.
- Explain the logic of your retirement age goal (and include the age). (Assume you will retire someday.)
3.Picturing yourself during (the assumed) retirement, do you predict having grandchildren?
- If taking a leisurely walk every day, starting now, would add 5 healthy years to your senior years, would you be able to start that walking habit?
- Of Jaspreet’s four investment styles he reviews, which would be Dr. Stewart’s favorite, and which is Jaspreet’s favorite?
- If you want to spend $50,000 per year for each of your retired 25 years, and your account will average 7.125% annual returns, then how large a nest egg do you need to achieve that goal?
- Social Security income changes by approx. 8% per year, lower if you’re not FRA, higher if you are, from 62 to 70. If your annual Social Security income would be $18,000 at age 67, what would it be at age 62? 70?
- Suppose you make $50,000 and are taxed 25% on it before you invest the total after-tax amount. In year 1 that amount grows by 8%, and then that growth amount is taxed 25%. Same for years 2, 3 and 4. How much did you invest at the beginning, and what are the after-tax account balances at the end of 1, 2, 3 and 4?
- Two people have identical investing patterns, only one invests through an IRA and the other doesn’t. If the income tax rate for each person is 25%, which account ends up larger? Do we know by how much.
- A friend of yours says they know they should open a Roth IRA, but they really want to invest in stocks. What advice can you offer them?
- Can you invest in any fund you want with IRA money? With 401k money?
- Optional items aren’t graded. It’d be contradictory if they were. Here’s hoping it’s not yet 11pm on the day the quiz is due!
- There are items A through E. Explain which one most deserves to be removed.
- Explain how lifestyle inflation could be a sign that the person is unhappy.
- ‘What are the three whammies of the “triple whammy?” With which of the three does Dr. Stewart disagree?
- How much sea-level-rise could the collapse of the Thwaites Galcier cause? (Please don’t go for the low housing prices of living in a flood plain.)
- Are the tax benefits of a HSA more like the tax benefits of an IRA or like a Roth IRA, or what?
20. Explain what “matching” means, in this context, as though you’re explaining it to a great-grandmother
