Financial Planner

Category - Retirement Savings and Income Planning

Your 18 year old client says he’s not working pass the age of 30. A life of retirement is for him. You inform that the costs of goods and services that retirees use most often increase faster than the general rate of inflation measured by the ______?
  1. Internal Revenue Service
  2. Standard and Poor
  3. Consumer Price Index
  4. Social Security Agency
Explanation
Answer: C - The costs of goods and services that retirees use most often increase faster than the general rate of inflation measured by the Consumer Price Index. Inflation is just one area of concern when determining financial needs during retirement. Retirement period and life expectancy must be considered with family history in mind. Lifestyle demands during retirement and the total return of project investment with tax rate must also be contemplated.
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