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Quiz: Are you a money-wise baby boomer?

Banks have adapted to rapidly changing technology in today's digital age, which likely has had a significant impact on the way baby boomers, or people born between 1946 and 1964, manage their bank accounts.

And as baby boomers get closer to retirement, saving and investing to get an adequate return to supplement their income during retirement are likely to become top priorities.

If you're a boomer, take our quiz and find out how much you know about today's deposit accounts, savings accounts and investing.

Find the best savings account rates at

Can you typically get a better interest rate on your savings account at a traditional bank or an online bank? © Markgraf/
Answer: Online bank. If you are looking for a better return in today's low interest rate environment, you should check out online banks. By not having to maintain physical offices, online banks generally operate at lower costs than traditional banks, which have to maintain brick-and-mortar branches and the big staffs that go with them.
Next Question If you want a steady lifetime income after retirement, can you invest through your 401(k) plan or IRA to achieve this goal? © jocic/
Answer: Yes. The government's recent rules make it possible to use your retirement plan for investing in a so-called "longevity annuity" that will give you a lifetime income — even one that could be adjusted for inflation — if you live beyond a certain age.
Next Question As you get closer to retirement, do target-date funds recommend that you have a higher stock or bond exposure in your portfolio? © Ryan R Fox/
Answer: Bonds. As you move toward retirement and begin withdrawing your money, you have less time to recover from market downturns and volatility. That's why the traditional asset allocation strategy is to cut back on your stock holdings and lean more toward investing in bonds as you get older.
Next Question As interest rates start going up from today's low levels, how is that likely to impact the bonds in your portfolio whose returns are based on recent low interest rates? © Beth Swanson/
Answer: Their price will dip. When interest rates start rising, newly issued bonds will carry a higher interest rate that will generate higher investor interest in them. Thus, there will be less demand for the older bonds, causing their prices to dip.
Next Question To get a higher return on your savings, is a CD always the better option than a checking account? © tanatat/
Answer: No. Some smaller banks have a high-yield checking account product that offers the possibility of getting a higher return than on a CD. However, these banks typically cap the amounts eligible for the higher interest rates. If you meet the requirements to get this rate, a number of these banks offer as much as a 2 percent annual yield.
Next Question Can you deposit a bank check without having to leave the comfort of your home? © R. MACKAY PHOTOGRAPHY, LLC/
Answer: Yes. Nowadays, you can use your smartphone to deposit a check remotely. A number of banks have "remote deposit" applications that allow you to take a picture of the check and deposit it to your checking account from anywhere.


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