Question 1

Over the years,social security retirement age will increase beyond age 65.

Accepted Answer

A) True 
 B)False

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.
-You have just begun working at ABC Corporation.Participation in the company's 401(k)plan will probably be [voluntary | mandatory].

Accepted Answer

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

Question 3

With a graduated vesting schedule over five years,Marianne is likely to keep ____ of her employer's contribution if she leaves her company after four years.

Accepted Answer

A)  10% 
B)  20% 
C)  40% 
D)  60% 
E)  80% 
A)  10% 
B)  20% 
C)  40% 
D)  60% 
E)  80%

Question 4

Variable annuities are usually better choices than fixed annuities for risk tolerant investors during the withdrawal phase of the annuity.

Accepted Answer

A) True 
 B)False

Question 5

As social security covers more employees,employer-provided pensions and individual retirement plans are covering fewer.

Accepted Answer

A) True 
 B)False

Question 6

The major financial benefit of beginning your retirement funding early is related to

Accepted Answer

A)  increased cost of living. 
B)  compound interest. 
C)  reduced anxiety. 
D)  inflation. 
E)  investment returns. 
A)  increased cost of living. 
B)  compound interest. 
C)  reduced anxiety. 
D)  inflation. 
E)  investment returns.

Question 7

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.
-Social security alone [will | will not] provide a comfortable standard of living at retirement.

Accepted Answer

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

Question 8

Qualified retirement plans provide employees with tax benefits.

Accepted Answer

A) True 
 B)False

Question 9

The employee contributions limits for 401(k)plans are the same as those for 403(b)and 457 plans.

Accepted Answer

A) True 
 B)False

Question 10

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 employee will be responsible for making investment choices when the employer offers a [401(k)plan | defined benefit plan].

Accepted Answer

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

Question 11

Employees who have 401(k)plans also have to decide how to invest the funds in their plan.

Accepted Answer

A) True 
 B)False

Question 12

The SEPP is designed for self-employed individuals.

Accepted Answer

A) True 
 B)False

Question 13

Payments from a defined benefits plan will be determined by the investment performance of the retirement funds.

Accepted Answer

A) True 
 B)False

Question 14

You will receive the largest monthly payment under an annuity contract when the selected payment option is the

Accepted Answer

A)  life annuity with no refund. 
B)  life annuity,period certain. 
C)  refund annuity. 
D)  annuity certain. 
E)  temporary life annuity. 
A)  life annuity with no refund. 
B)  life annuity,period certain. 
C)  refund annuity. 
D)  annuity certain. 
E)  temporary life annuity.

Question 15

Once you have gained the "fully insured" status,it is not lost even if you don't work any more.

Accepted Answer

A) True 
 B)False

Question 16

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.
-You can withdraw [your contribution | the total balance] of your Roth IRA at any time without penalty.

Accepted Answer

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

Question 17

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 employee is subject to the investment risk in a defined [contribution | benefit] plan.

Accepted Answer

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

Question 18

A 401(k)plan allows you to defer taxes on part of your income.

Accepted Answer

A) True 
 B)False

Question 19

Henry has a defined benefit plan that promises an annual retirement benefit based on the average of his last five years of salary times 2.5 times years of service.At retirement Henry has 21 years of service and an average salary over the last 5 years of $95,000.What will his annual benefit be?

Accepted Answer

A)  $95,000 
B)  $60,500 
C)  $49,875 
D)  $28,500 
E)  cannot determine 
A)  $95,000 
B)  $60,500 
C)  $49,875 
D)  $28,500 
E)  cannot determine

Question 20

Most people are too conservative when investing their retirement funds.

Accepted Answer

A) True 
 B)False

Over the years,social security retirement age will increase beyond age 65.

With a graduated vesting schedule over five years,Marianne is likely to keep ____ of her employer's contribution if she leaves her company after four years.

Variable annuities are usually better choices than fixed annuities for risk tolerant investors during the withdrawal phase of the annuity.

As social security covers more employees,employer-provided pensions and individual retirement plans are covering fewer.

The major financial benefit of beginning your retirement funding early is related to

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. -Social security alone [will | will not] provide a comfortable standard of living at retirement.

Qualified retirement plans provide employees with tax benefits.

The employee contributions limits for 401(k)plans are the same as those for 403(b)and 457 plans.

Employees who have 401(k)plans also have to decide how to invest the funds in their plan.

The SEPP is designed for self-employed individuals.

Payments from a defined benefits plan will be determined by the investment performance of the retirement funds.

You will receive the largest monthly payment under an annuity contract when the selected payment option is the

Once you have gained the "fully insured" status,it is not lost even if you don't work any more.

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 employee is subject to the investment risk in a defined [contribution | benefit] plan.

A 401(k)plan allows you to defer taxes on part of your income.

Henry has a defined benefit plan that promises an annual retirement benefit based on the average of his last five years of salary times 2.5 times years of service.At retirement Henry has 21 years of service and an average salary over the last 5 years of $95,000.What will his annual benefit be?

Most people are too conservative when investing their retirement funds.

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

Over the years,social security retirement age will increase beyond age 65.

With a graduated vesting schedule over five years,Marianne is likely to keep ____ of her employer's contribution if she leaves her company after four years.

Variable annuities are usually better choices than fixed annuities for risk tolerant investors during the withdrawal phase of the annuity.

As social security covers more employees,employer-provided pensions and individual retirement plans are covering fewer.

The major financial benefit of beginning your retirement funding early is related to

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. -Social security alone [will | will not] provide a comfortable standard of living at retirement.

Qualified retirement plans provide employees with tax benefits.

The employee contributions limits for 401(k)plans are the same as those for 403(b)and 457 plans.

Employees who have 401(k)plans also have to decide how to invest the funds in their plan.

The SEPP is designed for self-employed individuals.

Payments from a defined benefits plan will be determined by the investment performance of the retirement funds.

You will receive the largest monthly payment under an annuity contract when the selected payment option is the

Once you have gained the "fully insured" status,it is not lost even if you don't work any more.

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 employee is subject to the investment risk in a defined [contribution | benefit] plan.

A 401(k)plan allows you to defer taxes on part of your income.

Henry has a defined benefit plan that promises an annual retirement benefit based on the average of his last five years of salary times 2.5 times years of service.At retirement Henry has 21 years of service and an average salary over the last 5 years of $95,000.What will his annual benefit be?

Most people are too conservative when investing their retirement funds.

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