Question 1

Keogh and SEP plans provide tax deferred methods for the self employed to save for their retirement.

Accepted Answer

A) True 
 B)False

Question 2

A company using cliff vesting would legally have to give you vesting rights if you worked at a company 3 or more years.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following types of retirement plans is becoming less common?

Accepted Answer

A)  traditional defined contribution 
B)  traditional defined benefit 
C)  cash balance 
D)  401(k) 
E)  Keogh 
A)  traditional defined contribution 
B)  traditional defined benefit 
C)  cash balance 
D)  401(k) 
E)  Keogh

Question 4

____ do not have to be covered by Social Security coverage.

Accepted Answer

A)  Farmers and ministers 
B)  Federal civilian employees hired before 1984 and employees of state and local governments 
C)  Federal employees and ministers. 
D)  Teachers and employees of universities. 
E)  Ministers and professional athletes 
A)  Farmers and ministers 
B)  Federal civilian employees hired before 1984 and employees of state and local governments 
C)  Federal employees and ministers. 
D)  Teachers and employees of universities. 
E)  Ministers and professional athletes

Question 5

Eric works for a company with a defined contribution benefit pension plan.He will retire in ten years (at age 65)and expects his salary to be $100,000 in his last year of work.Social security should pay him $1,325 per month at that time.If he needs 80 percent of his income to maintain his standard of living upon retirement,how much annual income will he need from his employer's plan and from his own planning when he retires? (Show all work. )

Accepted Answer

Social security = $1,325 * 12

Question 6

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.
-[Any gainfully employed person | Only certain employees] can put money into an IRA.

Accepted Answer

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

Question 7

Jason just quit his current job.He has $13,000 vested in that 401(k)plan.Which of the following is true?

Accepted Answer

A)  If Jason takes the money and spends it,he will have to pay taxes and penalties on all $13,000. 
B)  If Jason takes the money and reinvests it in an IRA,the employer will write him a check for $13,000. 
C)  If Jason arranges a transfer of funds from his employer directly to his IRA trustee,his employer will withhold 20%. 
D)  a and b 
E)  a,b,and c 
A)  If Jason takes the money and spends it,he will have to pay taxes and penalties on all $13,000. 
B)  If Jason takes the money and reinvests it in an IRA,the employer will write him a check for $13,000. 
C)  If Jason arranges a transfer of funds from his employer directly to his IRA trustee,his employer will withhold 20%. 
D)  a and b 
E)  a,b,and c

Question 8

Reduced early retirement benefits can be received at age 62.

Accepted Answer

A) True 
 B)False

Question 9

The two ways to buy annuities are single premium and

Accepted Answer

A)  multi-premium. 
B)  future premium. 
C)  installment premium. 
D)  guaranteed premium. 
E)  lateral premium. 
A)  multi-premium. 
B)  future premium. 
C)  installment premium. 
D)  guaranteed premium. 
E)  lateral premium.

Question 10

Fully insured status for Social Security requires ____ quarters of coverage.

Accepted Answer

A)  6 
B)  10 
C)  25 
D)  40 
E)  50 
A)  6 
B)  10 
C)  25 
D)  40 
E)  50

Question 11

A Roth IRA

Accepted Answer

A)  is funded with after tax dollars. 
B)  allows interest or dividends to accrue tax free. 
C)  permits you to withdraw your contribution at any time. 
D)  provides for tax-free earnings if you hold the account 5 years and are 59 at withdrawal. 
E)  all of the above are true. 
A)  is funded with after tax dollars. 
B)  allows interest or dividends to accrue tax free. 
C)  permits you to withdraw your contribution at any time. 
D)  provides for tax-free earnings if you hold the account 5 years and are 59 at withdrawal. 
E)  all of the above are true.

Keogh and SEP plans provide tax deferred methods for the self employed to save for their retirement.

A company using cliff vesting would legally have to give you vesting rights if you worked at a company 3 or more years.

Which of the following types of retirement plans is becoming less common?

____ do not have to be covered by Social Security coverage.

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. -[Any gainfully employed person | Only certain employees] can put money into an IRA.

Jason just quit his current job.He has $13,000 vested in that 401(k)plan.Which of the following is true?

Reduced early retirement benefits can be received at age 62.

The two ways to buy annuities are single premium and

Fully insured status for Social Security requires ____ quarters of coverage.

A Roth IRA

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

Keogh and SEP plans provide tax deferred methods for the self employed to save for their retirement.

A company using cliff vesting would legally have to give you vesting rights if you worked at a company 3 or more years.

Which of the following types of retirement plans is becoming less common?

____ do not have to be covered by Social Security coverage.

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. -[Any gainfully employed person | Only certain employees] can put money into an IRA.

Jason just quit his current job.He has $13,000 vested in that 401(k)plan.Which of the following is true?

Reduced early retirement benefits can be received at age 62.

The two ways to buy annuities are single premium and

Fully insured status for Social Security requires ____ quarters of coverage.

A Roth IRA

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