The Ultimate Managing Retirement by Online Banking Quiz

Table of Contents

About This Quiz

Are you dreaming of a retirement spent traveling the world, lying on golden beaches and spending carefree time with the grandchildren? Unfortunately, these things don’t come without a cost. Online banking is an easy way to help you manage your money so that you can have the retirement you dream of. See what you know about managing your retirement using online banking while you have a go at this quiz.

About This Quiz

When is it best to begin retirement planning?

when you are ready to retire

when you get a job

as early as possible

The earlier you start planning your retirement, the better your retirement will be.

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Why is it important to start saving early?

Young people are more motivated to save.

The interest compounds and builds up over time.

The interest paid to your savings account will be compounded, increasing your savings simply by passing time in your account. The earlier you start, the more you will end up with.

Retirement funds give you better rates if you are young.

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In a survey performed in 2007, how many Americans were found to be saving for retirement?

0.6

The 2007 survey performed by the Employee Benefit Research Institute found that only 60% of Americans were saving for retirement and less than 40% had an IRA.

0.8

0.95

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Why is it not a good idea to depend on social security money?

The amount paid by social security is being spread among more people.

As the population ages with the baby boomers reaching retirement age, the social security funds are being stretched and, if you are dreaming of a retirement somewhere on a nice beach, you probably won’t be able to afford it with social security money alone.

Not everyone receives social security.

You might want to retire younger than 65.

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What is the best way to ensure a comfortable retirement?

Try to invent a cure for cancer.

Invest in shares.

Start saving.

Your best chance of a comfortable retirement is to start saving as early as possible.

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How can the Internet be useful in planning retirement?

It is easy to access financial advice.

You can manage your banking online.

Both of the above.

The Internet allows you to find financial advice and support networks at the click of a button, in addition to giving you the ability to manage your accounts online.

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What is the greatest advantage of online banking?

simplicity

convenience

The biggest perk to online banking is convenience. You can do it anytime and anywhere, as long as you have Internet access.

flexibility

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What does an online banking retirement calculator help you calculate?

how much you need to put away each month to reach your retirement goal

A retirement calculator helps you to work out how much you need to save in order to meet your retirement savings goal.

how much money you need to retire comfortably

at what age you will be able to retire according to your current savings

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What is the difference between a 401(k) and an IRA?

A 401(k) is opened by your employer.

The main difference between a 401(k) and an IRA is that your employer opens a 401(k) on your behalf but you must open an IRA yourself.

An IRA is opened by your employer.

Money in an IRA is always invested in bonds.

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Mutual funds are one way to invest for your retirement. How are mutual funds invested?

without a stockbroker

in conjunction with other investors

A stockbroker will combine your funds with other people’s funds to create a mutual investment which will allow you to diversify your investment.

as an independent investment

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Which type of investment fund most closely follows market trends?

stocks

mutual funds

index funds

Money invested in an index fund most closely follows market trends, as the money is split to buy shares in a broad range of stocks across the market.

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Why may investing in index funds be a better option than investing in mutual funds?

It is guaranteed to return a profit.

There are fewer fees.

There are fewer fees when investing in index funds, as the money isn’t actively managed; rather it is left to follow the performance of the market.

Your capital investment is secure.

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Investing in which of the following will make budgeting easiest?

stocks

401(k)

a online checking account

Having a checking account online allows you to manage your funds and track your spending from the comfort of your home, so it is easier to stay on top of your money and keep to your budget.

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How can you invest in stocks without using a stockbroker?

with online trading sites

with your bank’s index fund

both of the above

A good online banking system will allow you to transfer you funds into an index fund, removing the need for a stockbroker. Alternatively, you can trade online independently on one of the many online trading Web sites, such as E*trade or Scottrade.

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Why is online banking safe?

Your funds are insured.

Hackers regularly target internet banking sites. However, in the rare event that your account is accessed and money is stolen, the funds will most likely be insured by your bank.

Hackers cannot hack into online banking.

Both of the above.

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How are online bank thieves most likely to get access to your personal login information?

by bribing a bank employee

by tricking you

Thieves are most likely to get your login details from you. They may do this in the form of a scam email asking you to verify information or even just by searching your garbage for documents with your personal details and using it to hack into your account.

by hacking into the bank’s databases

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How can you spot if a thief has hacked your account?

Check your bank statement for irregularities.

If you see any irregular transactions on your bank account, follow it up right away and make sure it isn’t a thief enjoying life on your account. Spotting a hacker early can prevent further damage and allow pending transactions to be reversed.

You won’t be able to log in to your account.

You will get an email from the bank informing you.

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Which of the following is often offered as an employment benefit to aid retirement saving?

ongoing monthly payments after retirement

matching 401(k) savings

Employers may offer to match your 401(k) savings as an employment benefit, meaning you pay less tax and increase your retirement savings.

paid travel expenses

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What sort of e-mail from your bank should make you suspicious?

a request for personal information

If you get an e-mail requesting verification of personal details, including your password, do not open it. Such an e-mail is very likely to be a scam. Banks never request sensitive information by e-mail.

a season’s greetings e-card

information regarding a new savings account

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Which of the following is important in keeping your online banking login details secure?

creating a password you will easily remember

storing your password in a hidden file on your computer

keeping your antivirus software up-to-date

Hackers can use viruses to access your computer or record your keystrokes in an attempt to steal your online banking login information. Updating your antivirus software is an important way of preventing these attacks.

FINISH QUIZ

You Got:

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