You’ve been diligent—saving, monitoring retirement accounts, consulting your advisor. But are you prepared for life’s uncertainties? Your retirement plan relies on assumptions: savings, investment duration, inflation, and returns. Life, however, loves throwing curveballs—job loss, health issues, financial shocks.
That’s where stress testing comes in, your safety net in this unpredictable journey. Ready for a stress test?
Retirement Planning and Stress Testing Quiz
1. What does stress testing typically involve in financial planning?
A) Implementing the same assumptions for returns, inflation, and financial stability.
B) Ignoring assumptions and relying solely on historical data.
C) Introducing various assumptions related to returns, inflation, and personal financial stability.
D) Exclusively focusing on returns without considering other factors.
2. What resource should you use when evaluating the assumptions in your retirement plan to fully grasp the complexity of economic forces and life’s unexpected turns?
A) Online Calculators
B) Consult with your Financial Advisor
C) Historical Records
D) A Crystal Ball
3. When addressing potential risks highlighted during stress testing, what strategies are mentioned for managing these risks and uncertainties?
A) Stick to your original financial plan regardless of the stress test results.
B) Consult an astrologer for financial guidance.
C) Increase your investment in high-risk assets.
D) Discuss possible changes with your financial advisor, consider diversification, and explore insurance options.
Key:
- (C) Introducing various assumptions related to returns, inflation, and personal financial stability.
- (B) Consult with your Financial Advisor
- (D) Discuss possible changes with your financial advisor, consider diversification, and explore insurance options.
For more information, please contact Preston Englund at 402-461-4893 or .
Sources:
http://www.freddiemac.com/pmms/pmms30.html
https://www.cnbc.com/2018/12/31/stock-market-wall-street-stocks-eye-us-china-trade-talks.html
https://www.investopedia.com/ask/answers/042415/what-average-annual-return-sp-500.asp
Securities offered through IFP Securities, LLC, dba Independent Financial Partners (IFP), member FINRA/SIPC. Investment Advice offered through IFP Advisors, LLC, dba Independent Financial Partners (IFP), a Registered Investment Adviser. IFP and Ridgeline Advisors are not affiliated. The information given herein is taken from sources that IFP Advisors, LLC, dba Independent Financial Partners (IFP), IFP Securities LLC, dba Independent Financial Partners (IFP), and its advisors believe to be reliable, but it is not guaranteed by us as to accuracy or completeness. This is for informational purposes only and in no event should be construed as an offer to sell or solicitation of an offer to buy any securities or products. Please consult your tax and/or legal advisor before implementing any tax and/or legal related strategies mentioned in this publication as IFP does not provide tax and/or legal advice. Opinions expressed are subject to change without notice and do not take into account the particular investment objectives, financial situation, or needs of individual investors. This report may not be reproduced, distributed, or published by any person for any purpose without IFP’s express prior written consent. Prepared by 3rd party.
