Question

Which of the following are risks to financial independence?

1. A shortened work life expectancy
2. An extended retirement life expectancy
3. Inadequate investment rate of return

a.) 1 and 2 only
b.) 1 only
c.) 2 and 3 only
d.) 1, 2, and 3

Answer 1

The risks to financial independence are a shortened work life expectancy, an extended retirement life expectancy, and an inadequate investment rate of return.

Step-by-step explanation:

The correct answer is a.) 1 and 2 only. Both a shortened work life expectancy and an extended retirement life expectancy are risks to financial independence. A shortened work life expectancy means that someone will have less time to earn money and save for retirement, while an extended retirement life expectancy means that someone will need to rely on savings for a longer period of time. On the other hand, an inadequate investment rate of return can also be a risk to financial independence, as it may result in lower returns on savings and investments.