Get the Marcus mobile banking app

Easy mobile access. Download the app

Marcus Financial Literacy Test: Retirement Savings

Share this article

If you vowed to save more for retirement in 2020, we’ve got a handful of articles to help you think about how to save more. We’ve also got a challenge for you in the form of this financial literacy test focused on retirement. Test your knowledge and learn something new, or pat yourself on the back for answering these correctly.

1. True/False: In general, as you get closer to retirement, you should gradually reduce the risk in your portfolio. 

a. True

b. False

2. True/False: Contributions to your Roth IRA are tax deductible.

a. True

b. False

3. True/False: Contributions to a traditional IRA may be tax deductible. 

a. True

b. False

4. True/False: If you are contributing to a workplace 401(k) retirement savings plan, you cannot also contribute to a Roth IRA. 

a. True

b. False

5. Which one of these best describes an expense ratio?

a. A measurement of how much of a company charges to manage and operate an investment fund

b. The total dollar value of all the assets in a fund 

c. A measurement of how much a fund has grown in value daily, in comparison to how much it has lost

6. As of 2020, what is the 401(k) plan contribution limit for individual employees under 50?

a. $17,000

b. $18000

c. $19,500

7. When are you eligible to start receiving social security benefits? 

a. 55

b. 62

c. 65

8. According to the Social Security Administration, when is a good time to apply for your retirement benefits? 

a. 1 week before you want your benefits to kick in

b. 4 months before you want your benefits to kick in

c. 2 years before you want your benefits to kick in

9. Which one of these best describes the 4% rule? 

a. The percentage of income an individual should contribute to retirement each year

b. The rate at which an individual should increase their retirement contributions each year

c. A general guideline that refers to the percentage an individual should withdrawal from their retirement savings each year during retirement

10. True/False: You can choose your own investments and level of risk with a pension plan.

a. True

b. False

Saving for the future starts today. See how Marcus can help.

This article is for informational purposes only and shall not constitute an offer, solicitation, or recommendation to buy or sell securities, or of an account type, securities transaction, or investment strategy. This article was prepared by and approved by Marcus by Goldman Sachs®, but is not a description of any of the products or services offered by and does not reflect the institutional opinions of The Goldman Sachs Group, Inc., Goldman Sachs Bank USA, Goldman Sachs & Co. LLC or any of their affiliates, subsidiaries or divisions. Goldman Sachs Bank USA and Goldman Sachs & Co. LLC are not providing any financial, economic, legal, accounting, tax or other recommendation in this article and it is not a substitute for individualized professional advice. Information and opinions expressed in this article are as of the date of this material only and subject to change without notice.  Information contained in this article does not constitute the provision of investment advice by Goldman Sachs Bank USA, Goldman Sachs & Co. LLC are or any of their affiliates, none of which are a fiduciary with respect to any person or plan by reason of providing the material or content herein. Neither Goldman Sachs Bank USA, Goldman Sachs & Co. LLC nor any of their affiliates makes any representations or warranties, express or implied, as to the accuracy or completeness of the statements or any information contained in this document and any liability therefore is expressly disclaimed.

Investing involves risk, including the potential loss of money invested. Past performance does not guarantee future results. Neither asset diversification or investment in a continuous or periodic investment plan guarantees a profit or protects against a loss.