You’ve been diligent—saving, monitoring retirement accounts, consulting your advisor. But are you prepared for life’s uncertainties? Your retirement plan relies on assumptions: savings, investment duration, inflation, and returns. Life, however, loves throwing curveballs—job loss, health issues, financial shocks.
That’s where stress testing comes in, your safety net in this unpredictable journey. Ready for a stress test?
Retirement Planning and Stress Testing Quiz
- What does stress testing typically involve in financial planning?
- A) Implementing the same assumptions for returns, inflation, and financial stability.
- B) Ignoring assumptions and relying solely on historical data.
- C) Introducing various assumptions related to returns, inflation, and personal financial stability.
- D) Exclusively focusing on returns without considering other factors.
- What resource should you use when evaluating the assumptions in your retirement plan to fully grasp the complexity of economic forces and life’s unexpected turns?
- A) Online Calculators
- B) Consult with your Financial Advisor
- C) Historical Records
- D) A Crystal Ball
- When addressing potential risks highlighted during stress testing, what strategies are mentioned for managing these risks and uncertainties?
- A) Stick to your original financial plan regardless of the stress test results.
- B) Consult an astrologer for financial guidance.
- C) Increase your investment in high-risk assets.
- D) Discuss possible changes with your financial advisor, consider diversification, and explore insurance options.
For more information, please contact your plan’s financial professional, Epiqwest Culver Wealth Advisors, LLC at (303) 442-3670.
Epiqwest Culver Wealth Advisors, LLC • 370 Interlocken Blvd., Ste 290 • Broomfield, CO 80021 • (303) 442-3670
www.epiqwest.com
Investment advisory services offered through Epiqwest Culver Wealth Advisors, LLC, an SEC Registered Investment Advisor.
ACR# 5949701 09/23
Sources:
http://www.freddiemac.com/pmms/pmms30.html
https://www.cnbc.com/2018/12/31/stock-market-wall-street-stocks-eye-us-china-trade-talks.html
https://www.investopedia.com/ask/answers/042415/what-average-annual-return-sp-500.asp