Pop Quiz! How Well Do You Understand Financial Concepts?
As we grow as a business that helps people worry less about money, I see more and more people than ever before. One of the alarming things I am finding is the general public has not received a good education on simple financial concepts. Answer these questions and think to yourself when it comes to planning for retirement, should I get professional retirement planning help?
1. Suppose you had $100 in a savings account and the interest rate was 2 percent per year. After five years, how much do you think you would have in the account if you left the money to grow?
A) more than $102
B) exactly $102
C) less than $102
D) do not know
2. Imagine that the interest rate on your savings account is 1 percent per year and inflation is 2 percent per year. After one year, would you be able to buy…
A) more than today with the money in this account
B) exactly the same as today with the money in this account
C) less than today with the money in this account
D) do not know
3. Do you think that the following statement is true or false? “Buying a single company stock usually provides a safer return than a stock mutual fund.”
C) do not know
These questions seem simple enough, right? Well, they are often answered wrong, and only %30 of Americans ace this three question quiz. The correct answers are 1-A; 2-C; and 3-B.
So how did you do? Hopefully, you aced it and got all three questions correct, if not, that’s ok we would love to educate you! Matter of fact here is a link to my YouTube channel that has every single episode of my TV show “The WorryFree Retirement®.” Each show we dive into financial education, especially when it comes to retirement planning and taxes.
If you want to meet with me in person or have a question about anything relates to financial matters or retirement planning, click on the link below to begin educating yourself on your money and not running out of it in retirement.