Knowing
Your Financial IQ – Important Questions
If you are not financially savvy, you are making
yourself vulnerable to any breath of adversity. Generally speaking, most people
get into trouble with their finances due to one simple reason: procrastination. It is thus very important to break that bad habit now. To do that, you
will need to learn your financial IQ by answering the following questions . What is
clear, though, is that these questions can help you to turn your thinking
inside out in a way that will yield new insights into how you rate financially.
The answers to the questions are also presented below.
1.
How long do you expect to live (based on actuarial charts)?
2.
If you are a worker born between 1943 and 1954, at what age will you be eligible for full Social Security
benefits?
A. 62 B.
64 C. 66 D. 68
Source:
Baltimore Sun Media Group, 2011
3.
On average, what percent of a retiree’s income will be spent on healthcare?
A. 5
percent B. 10
percent C. 15 percent D. 20 percent
Source:
Baltimore Sun Media Group, 2011
4.
When a worker retires, his or her income taxes go away.
A. True B. False
Source:
Baltimore Sun Media Group, 2011
5.
On average, how many years will you
spend in retirement(assuming you are a U.S. citizen)?
A. 10 B. 15 C. 20 D.
25
Source:
Baltimore Sun Media Group, 2011
6.
Some early baby boomers (age 56 to 62) are expected to run out of money to
cover basic retirement living expenses. What
percent of them belong to this category?
A. 17 percent B. 23 percent C. 42 percent D.
47 percent
Source:
Baltimore Sun Media Group, 2011
7.
Your surviving spouse will be granted
all or most of your assets if you die without a will.
A. True B.
False.
Source:
Baltimore Sun Media Group, 2011
8.
Insurance is considered to be a way of:
A.
Saving
for a rainy day
B.
Preventing
unplanned events
C.
Handling
risk
D.
All
of the above.
Source:
Baltimore Sun Media Group, 2011
9.
Your credit history or credit score is:
A.
a
snapshot of your credit risk
B.
an
objective measurement used by lenders
C.
available
to you upon request
D.
All
of the above
Source:
Baltimore Sun Media Group, 2011
10.
You can improve your credit rating:
A.
By
correcting inaccurate information as soon as possible
B.
By
disputing negative information in your credit report
C.
By
correcting only the worst credit report
D.
By
asking that negative information not be included in your credit report.
Source:
Baltimore Sun Media Group, 2011
Your Grade Book
10
Correct: Excellent - You are financially smart
9
Correct: Satisfactory
8
or less correct: Unsatisfactory – you need to do more homework on personal
finance.
Answer Key
1.
According to the U.S. Social Security Administration, you can expect to live
until age 85 if you are a woman turning age 65 today. In addition, you can
expect to live, on average, until age 83
if you are a man reaching age 65 today. Go to the following website to
calculate your expected lifespan:
2. C
3.
D
4.
False. Pre-tax money a worker
contributed to a retirement plan is
subject to income taxes when it is
withdrawn during retirement years.
5.
C
6.
D
7.
False. Every U.S. state has unique
laws governing who will own the property. To calculate the outcome in your state, go to www.mystatewill.com
8.
C
9.
D
10.
A
Reference
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