Staying the course - Retirement Quiz

 
  • QUESTION 1

    According to the 4% rule, if retirees withdraw 4% of their savings annually (adjusting this amount for inflation every year), their nest egg will last for at least how many years?

     

    Correct!
    Incorrect! The correct answer is 30 years. See “Is the ‘4% rule’ still relevant for retirement planning?” for more.
  • QUESTION 2

    William Bengen’s 4% rule requires that retirement savings are split equally between:

     

    Correct!
    Incorrect! The correct answer is Shares and Bonds. See “Is the ‘4% rule’ still relevant for retirement planning?" for more.
  • QUESTION 3

    Who can invest in Retirement Annuities?

     

    Correct!
    Incorrect! Anyone who wants to save for retirement can invest in Retirement Annuities. See “Retirement and tax: what you need to know” for more.
  • QUESTION 4

    Which of the below statements is true?

     

    Correct!
    Incorrect! You can contribute to as many Retirement Annuities as you like. See “Retirement and tax: what you need to know” for more.
  • QUESTION 5

    Choose one of the changes brought about by the new Taxation Laws Amendment Act:

     

    Correct!
    Incorrect! Provident fund members can now only withdraw one third of their savings at retirement. See “Retirement and tax: what you need to know” for more.
  • QUESTION 6

    Does the new Taxation Laws Amendment Act affect you if you leave a pension or provident fund before retirement because of changing jobs, retrenchment or dismissal?

     

    Correct!
    Incorrect! The new Taxation Laws Amendment Act does not affect you if you leave a pension or provident fund before retirement because of changing jobs, retrenchment or dismissal. See “Retirement and tax: what you need to know” for more.
  • QUESTION 7

    How much money do tax-free savings accounts allow investors to save annually without capital or returns being taxed?

     

    Correct!
    Incorrect! Tax-free savings accounts allow you to save up to R30 000 a year without the capital or returns being taxed. See “Retirement and tax: what you need to know” for more.
  • QUESTION 8

    Net worth is the difference between…

     

    Correct!
    Incorrect! Net worth is the difference between Assets and Debt. See “How your net worth fits into retirement planning” for more.
  • QUESTION 9

    Knowing your net worth can be useful because:

     

    Correct!
    Incorrect! Knowing your net worth can be useful to help you understand if your assets are growing and your liabilities are decreasing. See “How your net worth fits into retirement planning” for more.
  • QUESTION 10

    What is the standard definition of risk in an investment context?

     

    Correct!
    ncorrect! The standard definition of risk in an investment context is, “The higher an investment’s relative risk, the higher the possible return”. See “Goals - How to make risk your friend” for more.
  • QUESTION 11

    Which investment strategy helps mitigate investment risk?

     

    Correct!
    ncorrect! Diversification helps mitigate investment risk. See “Goals - How to make risk your friend” for more.
  • QUESTION 12

    Which of the below asset classes has the highest potential risk?

    Correct! Incorrect! Equities are generally seen as the asset class with the highest potential risk. See “Goals - How to make risk your friend” for more.

Thanks for playing!

 

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