Part of the Reason It Is Difficult to Define Retirement

question 43

Multiple Choice

Part of the reason it is difficult to define retirement precisely is that the decision to retire involves the loss of occupational identity with

• A) no obvious replacement for that loss.
• B) no assurance that a person will remain retired.
• C) a new replacement identity as a volunteer in an undetermined area of need.
• D) a replacement role as a member of a lower tax bracket.

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Definitions:

Nonfinancial Factors

Aspects influencing decision-making that are not quantifiable in monetary terms, such as environmental impact or employee satisfaction.

Present Value

The worth at present of a future amount of money or sequence of financial flows, factoring in a specified rate of return.

Net Cash Flow

The total amount of money being transferred into and out of a business, specifically the sum of cash receipts minus cash payments over a given period of time.

Maximum Cost

The highest possible expense that can be incurred for a specific activity, project, or purchase.