How Much Savings Does One Need to Have in Order

question 74

Multiple Choice

How much savings does one need to have in order to be comfortable in retirement? A good rule of thumb is

• A)25% of your current income.
• B)45-50% of your current income.
• C)65-70% of your current income.
• D)Because one cannot predict how long one will live or what health problems one might encounter in the future, there is no way to predict how much money one will need in retirement.

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Definitions:

Expiration Date

The specific date upon which an options or futures contract becomes void and the holder must execute or relinquish the contract.

Exercise Price

The specified price at which the holder of an option can buy (call) or sell (put) the underlying asset.

Stock Splits

A corporate action that increases the number of a company's outstanding shares by dividing each share, which typically reduces its share price but does not affect the company's overall market capitalization.

Exercise Price

The predetermined price at which the holder of an option can buy (call) or sell (put) the underlying asset.