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Test your financial planning acumen
Test your financial planning acumen
PUBLISHED: | UPDATED:

Time for a pop quiz.

The following seven questions come from previous columns. The answers can be found at capitalwealthmngt.com, under “Investment Quiz Answers.”

1. Under the new Secure Act, at what age does an individual need to begin taking required minimum distributions from a Roth IRA?

a. 59 1/2

b. 70 1/2

c. 72

d. Never

2. Index funds have outperformed what percentage of all actively managed U.S. stock mutual funds over the past 15 years?

a. 65%

b. 72%

c. 87%

3. Duration is a measure of a bond fund’s sensitivity to what?

a. Inflation

b. Interest-rate changes

c. Stock-market volatility

d. All of the above

4. True or false: A mutual fund’s expense ratio represents all of the fees and expenses associated with owning a mutual fund.

5. From 1980 to 2020, U.S. stocks earned an annualized return of 11.7%. During that same period, gold earned an annualized return of what how much?

a. 22.3%

b. 14.2%

c. 3.1%

6. If inflation averaged 3%, you would need how much in income in 20 years to maintain the same level of purchasing power that $50,000 can buy today?

a. $60,000

b. $70,000

c. $80,000

d. $90,000

7. If a penny doubles in value every day, how much would it be worth after 31 days?

a. $10,748

b. $100,718

c. $10,737,418

Martin Krikorian is president of Capital Wealth Management, a registered investment adviser providing fee-only investment management services, located at 9 Billerica Road, Chelmsford. He is the author of the investment books, “10 Chapters to Having a Successful Investment Portfolio” and the “7 Steps to Becoming a Successful Investor.” Martin can be reached at 978-244-9254, www.capitalwealthmngt.com, or via email at info@capitalwealthmngt.com.

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