Question 1

Short-term retirement planning usually involves

Accepted Answer

A)  3 to 5 year time horizons. 
B)  waiting until age 50 to start planning. 
C)  the need to save large amounts annually. 
D)  the use of more risky investments. 
E)  reducing inflation projections. 
A)  3 to 5 year time horizons. 
B)  waiting until age 50 to start planning. 
C)  the need to save large amounts annually. 
D)  the use of more risky investments. 
E)  reducing inflation projections.

Question 2

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement.
-The Pension Benefit Guarantee Corporation (PBGC)protects employees pensions from [inflation | bankruptcy].

Accepted Answer

The answer of INSTRUCTIONS: Choose the word or phrase in...

Question 3

One can maximize the monthly Social Security benefit amount by delaying taking retirement benefits until age

Accepted Answer

A)  62 
B)  65 
C)  67 
D)  70 
E)  75 
A)  62 
B)  65 
C)  67 
D)  70 
E)  75

Question 4

Whether or not social security benefits will be subject to income taxes depends on the age of the recipient.

Accepted Answer

A) True 
 B)False

Question 5

If an annuity plan is designed so that the monthly payment is adjusted by the actual investment experience of the insurer,it is

Accepted Answer

A)  a fixed dollar annuity. 
B)  an equity annuity. 
C)  a variable annuity. 
D)  an uncertain annuity. 
E)  a temporary annuity. 
A)  a fixed dollar annuity. 
B)  an equity annuity. 
C)  a variable annuity. 
D)  an uncertain annuity. 
E)  a temporary annuity.

Question 6

For most workers,participation in the social security system is mandatory.

Accepted Answer

A) True 
 B)False

Question 7

Age 65 is typically the "normal retirement" age on retirement plans.

Accepted Answer

A) True 
 B)False

Question 8

In long-term retirement planning you decide on the required level of retirement income and funds needed over a 3 to 5 year series of intervals.

Accepted Answer

A) True 
 B)False

Question 9

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement.
-If you need to withdraw your money from an annuity very soon after you begin making contributions,there most likely will be a [small | large] surrender fee.

Accepted Answer

The answer of INSTRUCTIONS: Choose the word or phrase in...

Question 10

Self directed retirement accounts such as Keogh and SEP accounts can be set up at

Accepted Answer

A)  banks. 
B)  brokerage houses. 
C)  insurance companies. 
D)  mutual fund companies. 
E)  All of the above 
A)  banks. 
B)  brokerage houses. 
C)  insurance companies. 
D)  mutual fund companies. 
E)  All of the above

Question 11

The amount accumulated in a defined contribution plan will be determined,at least in part,by the investment performance of the retirement funds.

Accepted Answer

A) True 
 B)False

Question 12

An investor's principal source of retirement income is social security retirement funds.

Accepted Answer

A) True 
 B)False

Question 13

The need for retirement planning is increased by the uncertainties of

Accepted Answer

A)  inflation. 
B)  social security benefits. 
C)  the assets you hold. 
D)  your pension benefits. 
E)  all of these. 
A)  inflation. 
B)  social security benefits. 
C)  the assets you hold. 
D)  your pension benefits. 
E)  all of these.

Question 14

The biggest unknown factor that retirees have when estimating their retirement needs and income is

Accepted Answer

A)  social security. 
B)  inflation. 
C)  pension benefits. 
D)  expenditures. 
E)  retirement age. 
A)  social security. 
B)  inflation. 
C)  pension benefits. 
D)  expenditures. 
E)  retirement age.

Question 15

Home Appliance Warehouse,Inc.would like to set up a retirement plan for its employees that encourage employees to save for their own retirement.The company is willing to match employee contributions.Which of the following plans would be appropriate in this situation?

Accepted Answer

A)  Cash balance plan 
B)  403(b)plan 
C)  457 plan 
D)  401(k)plan 
E)  b,c,and d 
A)  Cash balance plan 
B)  403(b)plan 
C)  457 plan 
D)  401(k)plan 
E)  b,c,and d

Question 16

Early death results in the loss of annuity capital in a straight life annuity.

Accepted Answer

A) True 
 B)False

Question 17

If one is unsure about the facts needed to estimate retirement needs,it is better to do nothing for a few years.

Accepted Answer

A) True 
 B)False

Question 18

Depending on your age,Social security retirement benefits could be reduced because of employment income.

Accepted Answer

A) True 
 B)False

Question 19

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement.
-With a life annuity,period certain,a payment will be made for a stated period of time [only to the annuitant if she lives | to someone else if the annuitant dies].

Accepted Answer

The answer of INSTRUCTIONS: Choose the word or phrase in...

Question 20

Starting later in life and being too conservative when investing are both common retirement planning mistakes.

Accepted Answer

A) True 
 B)False

Short-term retirement planning usually involves

One can maximize the monthly Social Security benefit amount by delaying taking retirement benefits until age

Whether or not social security benefits will be subject to income taxes depends on the age of the recipient.

If an annuity plan is designed so that the monthly payment is adjusted by the actual investment experience of the insurer,it is

For most workers,participation in the social security system is mandatory.

Age 65 is typically the "normal retirement" age on retirement plans.

In long-term retirement planning you decide on the required level of retirement income and funds needed over a 3 to 5 year series of intervals.

Self directed retirement accounts such as Keogh and SEP accounts can be set up at

The amount accumulated in a defined contribution plan will be determined,at least in part,by the investment performance of the retirement funds.

An investor's principal source of retirement income is social security retirement funds.

The need for retirement planning is increased by the uncertainties of

The biggest unknown factor that retirees have when estimating their retirement needs and income is

Home Appliance Warehouse,Inc.would like to set up a retirement plan for its employees that encourage employees to save for their own retirement.The company is willing to match employee contributions.Which of the following plans would be appropriate in this situation?

Early death results in the loss of annuity capital in a straight life annuity.

If one is unsure about the facts needed to estimate retirement needs,it is better to do nothing for a few years.

Depending on your age,Social security retirement benefits could be reduced because of employment income.

Starting later in life and being too conservative when investing are both common retirement planning mistakes.

Understanding the Financial Planning Process

Your Financial Statements and Plans

Preparing Your Taxes

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Credit

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Investing in Mutual Funds

Preserving Your Estate

Filters

Exam 14: Planning for Retirement

Short-term retirement planning usually involves

One can maximize the monthly Social Security benefit amount by delaying taking retirement benefits until age

Whether or not social security benefits will be subject to income taxes depends on the age of the recipient.

If an annuity plan is designed so that the monthly payment is adjusted by the actual investment experience of the insurer,it is

For most workers,participation in the social security system is mandatory.

Age 65 is typically the "normal retirement" age on retirement plans.

In long-term retirement planning you decide on the required level of retirement income and funds needed over a 3 to 5 year series of intervals.

Self directed retirement accounts such as Keogh and SEP accounts can be set up at

The amount accumulated in a defined contribution plan will be determined,at least in part,by the investment performance of the retirement funds.

An investor's principal source of retirement income is social security retirement funds.

The need for retirement planning is increased by the uncertainties of

The biggest unknown factor that retirees have when estimating their retirement needs and income is

Home Appliance Warehouse,Inc.would like to set up a retirement plan for its employees that encourage employees to save for their own retirement.The company is willing to match employee contributions.Which of the following plans would be appropriate in this situation?

Early death results in the loss of annuity capital in a straight life annuity.

If one is unsure about the facts needed to estimate retirement needs,it is better to do nothing for a few years.

Depending on your age,Social security retirement benefits could be reduced because of employment income.

Starting later in life and being too conservative when investing are both common retirement planning mistakes.

Understanding the Financial Planning Process

Your Financial Statements and Plans

Preparing Your Taxes

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Credit

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Investing in Mutual Funds

Preserving Your Estate

Filters