Question 1

Annuity premiums are paid to the insurance company during the accumulation period.

Accepted Answer

A) True 
 B)False

Question 2

The period during which premiums are paid for the purchase of an annuity is called the

Accepted Answer

A)  installment period. 
B)  accumulation period. 
C)  survivor period. 
D)  distribution period. 
E)  contract period. 
A)  installment period. 
B)  accumulation period. 
C)  survivor period. 
D)  distribution period. 
E)  contract period.

Question 3

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.
-Kurt receives social security benefits and also received $55,000 wages during the year.His social security benefits will be [totally | partially] taxable.

Accepted Answer

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

Question 4

Mary Ann contributed $5,000 to her 401(k)plan.If Mary Ann is in the 15% marginal tax bracket,this retirement contribution saved her approximately ____ in federal income taxes.

Accepted Answer

A)  $5,000 
B)  $4,250 
C)  $2,500 
D)  $ 750 
E)  $ 0 
A)  $5,000 
B)  $4,250 
C)  $2,500 
D)  $ 750 
E)  $ 0

Question 5

The cost of an annuity varies with the

Accepted Answer

A)  age of the annuitant at issue. 
B)  age of the annuitant when payment begins. 
C)  method of proceeds distribution. 
D)  sex of the annuitant. 
E)  all of the above. 
A)  age of the annuitant at issue. 
B)  age of the annuitant when payment begins. 
C)  method of proceeds distribution. 
D)  sex of the annuitant. 
E)  all of the above.

Question 6

A graded vesting schedule would legally have to give you some vesting rights even though you worked at a company only 1 year.

Accepted Answer

A) True 
 B)False

Question 7

Major sources of retirement income include all of the following except

Accepted Answer

A)  life insurance. 
B)  annuities. 
C)  individual savings plans. 
D)  employer retirement and pension plans. 
E)  social security. 
A)  life insurance. 
B)  annuities. 
C)  individual savings plans. 
D)  employer retirement and pension plans. 
E)  social security.

Question 8

The fees on annuities tend to be high compared to mutual funds.

Accepted Answer

A) True 
 B)False

Question 9

It is extremely wise to contribute at least as much to a 401(k)plan as one's employer will match.

Accepted Answer

A) True 
 B)False

Question 10

Annuities may guarantee proceeds for a specific period or for a specific amount.

Accepted Answer

A) True 
 B)False

Question 11

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 Social Security administration provides estimates of retirement benefits one could expect to receive in [current | inflated] dollars.

Accepted Answer

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

Question 12

At the same time as employers are cutting back on traditional pension plans,more are offering defined benefit plans.

Accepted Answer

A) True 
 B)False

Question 13

A $3,000 annual contribution to a retirement account earning 6% will be worth ____ in 20 years.

Accepted Answer

A)  $ 60,000 
B)  $ 96,780 
C)  $100,000 
D)  $110,340 
E)  $192,600 
A)  $ 60,000 
B)  $ 96,780 
C)  $100,000 
D)  $110,340 
E)  $192,600

Question 14

Social security benefits alone can usually fund a comfortable retirement.

Accepted Answer

A) True 
 B)False

Question 15

A large selection of investment types can qualify as IRA investments.

Accepted Answer

A) True 
 B)False

Question 16

Annuity proceeds are limited to the life of one person.

Accepted Answer

A) True 
 B)False

Question 17

Individuals are being forced to assume more and more responsibility for their own retirement.

Accepted Answer

A) True 
 B)False

Question 18

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.
-Under a defined contribution pension plan,an employee [is | is not] able to estimate what his pension payment would be upon retirement.

Accepted Answer

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

Question 19

Employers who want flexibility in how much they contribute to their employees' retirement plans would want to consider adopting a ____ plan.

Accepted Answer

A)  Qualified defined contribution 
B)  Cash balance 
C)  Defined benefit 
D)  Profit sharing 
E)  403(b) 
A)  Qualified defined contribution 
B)  Cash balance 
C)  Defined benefit 
D)  Profit sharing 
E)  403(b)

Question 20

Mandy and Michael Tombs are retiring soon.Their projected month Social Security benefits are $800 and $1,800,respectively.Assuming they are married and they select the best benefit alternative for them,how much will they receive monthly?

Accepted Answer

A)  $ 800 
B)  $1,200 
C)  $1,800 
D)  $2,600 
E)  $2,700 
A)  $ 800 
B)  $1,200 
C)  $1,800 
D)  $2,600 
E)  $2,700

Annuity premiums are paid to the insurance company during the accumulation period.

The period during which premiums are paid for the purchase of an annuity is called the

Mary Ann contributed $5,000 to her 401(k)plan.If Mary Ann is in the 15% marginal tax bracket,this retirement contribution saved her approximately ____ in federal income taxes.

The cost of an annuity varies with the

A graded vesting schedule would legally have to give you some vesting rights even though you worked at a company only 1 year.

Major sources of retirement income include all of the following except

The fees on annuities tend to be high compared to mutual funds.

It is extremely wise to contribute at least as much to a 401(k)plan as one's employer will match.

Annuities may guarantee proceeds for a specific period or for a specific amount.

At the same time as employers are cutting back on traditional pension plans,more are offering defined benefit plans.

A $3,000 annual contribution to a retirement account earning 6% will be worth ____ in 20 years.

Social security benefits alone can usually fund a comfortable retirement.

A large selection of investment types can qualify as IRA investments.

Annuity proceeds are limited to the life of one person.

Individuals are being forced to assume more and more responsibility for their own retirement.

Employers who want flexibility in how much they contribute to their employees' retirement plans would want to consider adopting a ____ plan.

Mandy and Michael Tombs are retiring soon.Their projected month Social Security benefits are $800 and $1,800,respectively.Assuming they are married and they select the best benefit alternative for them,how much will they receive monthly?

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

Annuity premiums are paid to the insurance company during the accumulation period.

The period during which premiums are paid for the purchase of an annuity is called the

Mary Ann contributed $5,000 to her 401(k)plan.If Mary Ann is in the 15% marginal tax bracket,this retirement contribution saved her approximately ____ in federal income taxes.

The cost of an annuity varies with the

A graded vesting schedule would legally have to give you some vesting rights even though you worked at a company only 1 year.

Major sources of retirement income include all of the following except

The fees on annuities tend to be high compared to mutual funds.

It is extremely wise to contribute at least as much to a 401(k)plan as one's employer will match.

Annuities may guarantee proceeds for a specific period or for a specific amount.

At the same time as employers are cutting back on traditional pension plans,more are offering defined benefit plans.

A $3,000 annual contribution to a retirement account earning 6% will be worth ____ in 20 years.

Social security benefits alone can usually fund a comfortable retirement.

A large selection of investment types can qualify as IRA investments.

Annuity proceeds are limited to the life of one person.

Individuals are being forced to assume more and more responsibility for their own retirement.

Employers who want flexibility in how much they contribute to their employees' retirement plans would want to consider adopting a ____ plan.

Mandy and Michael Tombs are retiring soon.Their projected month Social Security benefits are $800 and $1,800,respectively.Assuming they are married and they select the best benefit alternative for them,how much will they receive monthly?

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