1Yusuf’s job matches 100% up to 3% of pay. He has a $700 emergency fund and no high-interest debt. He puts in 0% because “retirement is far away.” What is he giving up each year on a $40,000 salary?
- ANothing — he can catch up later
- B$1,200 of employer money — part of his pay that only arrives if he contributes
- C$400
- DIt depends on the stock market
2Which of these is true about Social Security in the U.S.?
- AEveryone gets the same amount at 62
- BYou earn it by working and paying in; the amount depends on your earnings and when you start; what applies to you is on ssa.gov
- CIt replaces your full salary
- DIt calls you to confirm your number by phone
3Mina is leaving her job. Her plan holds $8,000. What is usually the best move?
- ACash it out — it is her money
- BLeave it, move it to the new job’s plan, or roll it into an IRA — no tax, and it keeps growing
- CSpend it on the move
- DForget about it
4Carlos, 47, says “It is too late for me.” He has $150 a month and 20 working years ahead. What is true?
- AToo late — do nothing
- B$150 a month for 20 years is about $78,000 in the illustration — the next 20 years count, whenever they start
- CHe should put everything into one company’s stock to catch up
- DHe should wait until he earns more
5Nour has a plan at work, a savings account and a life insurance policy. She has never named a beneficiary on any of them. What should she do?
- ANothing — it goes to family automatically and quickly
- BName a beneficiary on each one this week — five minutes each, no cost — and tell one person where the documents are
- CPay a company to do it
- DWait until she is older
One more, for you only
The one thing from this series I have already changed: