Foolproof Module 6 Test Answers (2024)

FAQs

How much money will you need for retirement foolproof? ›

Now, how much money will you need for retirement? A good rule of thumb: You want to have at least 80% of your working income when you retire. You want to have enough retirement income to keep you going for 30 years.

The grace period: How many days you have to pay your credit card bill in full before you're charged a lot of interest. Credit card companies have different grace periods. Some give you 21 days to pay your bill in full. Some give you 25.

Expert-Verified Answer

The correct answer is: 'The credit card company extends you a line of credit. You purchase "stuff" and then have the choice to pay the balance in full or a minimum payment each month. ' Credit cards extend a line of credit allowing you to make purchases.

Even if you plan to pay off your credit card bill in full each month, never charge more than about 80% of your credit limit.

How Much Should a 70-Year-Old Have in Savings? Financial experts generally recommend saving anywhere from $1 million to $2 million for retirement. If you consider an average retirement savings of $426,000 for those in the 65 to 74-year-old range, the numbers obviously don't match up.

The Consumer Financial Protection Bureau recommends keeping your credit utilization under 30%. If you have a card with a credit limit of $1,000, try to keep your balance below $300.

Although ranges vary depending on the credit scoring model, generally credit scores from 580 to 669 are considered fair; 670 to 739 are considered good; 740 to 799 are considered very good; and 800 and up are considered excellent.

If you can't pay your credit card bill, it's important to act right away. Contact your credit card company immediately. Many card companies are willing to work with you to change your payment if you're facing a financial emergency.

Credit card companies don't allow you to make minimum monthly payments, or to pay off an outstanding balance, with another credit card from a different company. Often, the fees for these types of transactions are too high for credit card companies to allow it.

Can I use my credit card again after paying it off? ›

Yes. Once your payment posts to your credit card, you are free to use that credit again. Just note that continually spending above your available credit each month can be of concern to your card issuer. It may signal the company to perform a financial review, even if you pay off your card frequently.

Going over your credit limit usually does not immediately impact your credit, particularly if you pay down your balance to keep the account in good standing. However, an account that remains over its limit for a period of time could be declared delinquent, and the issuer could close the account.

Some experts say to have at least eight to 10 times your annual salary available to you once you enter retirement. Others say you need at least 65% to 80% of your pre-retirement income available to you each year. There are also general savings recommendations by age, and, finally, there's the 4% rule, too.

How long will $1 million in retirement savings last? In more than 20 U.S. states, a million-dollar nest egg can cover retirees' living expenses for at least 20 years, a new analysis shows. It's worth noting that most Americans are nowhere near having that much money socked away.

As we have established, retiring on $500k is entirely feasible. With the addition of Social Security benefits, this becomes even more of a possibility. In retirement, Social Security benefits can provide an additional $1,900 per month, on average. You can start receiving Social Security benefits as early as 62.

Our guideline: Aim to save at least 15% of your pre-tax income¹ each year, which includes any employer match. That's assuming you save for retirement from age 25 to age 67. Together with other steps, that should help ensure you have enough income to maintain your current lifestyle in retirement.