Question 1

Self-employer workers pay twice as much for Social Security coverage compared to employed workers.

Accepted Answer

A) True 
 B)False

Question 2

ERISA was passed to reduce the number of private employer retirement plans.

Accepted Answer

A) True 
 B)False

Question 3

It is legal for employers to reduce an employee's pension as a result of receiving Social Security benefits.

Accepted Answer

A) True 
 B)False

Question 4

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.
-A self-employed person could set up a [Keogh | 403(b)] retirement plan.

Accepted Answer

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

Question 5

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.
-[401(k)| 403(b)] plans would be available for employees of a public,non-profit organization.

Accepted Answer

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

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.
-Money to make social security benefit payments comes from contributions from [employees only | employers only].

Accepted Answer

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

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.
-About [50 | 75] percent of American workers are covered by some type of employer provided pension plan.

Accepted Answer

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

Question 8

Gordon and Lisa estimate that they will need $1,875,000 in 40 years for their retirement years.If they can earn 8 percent annually on their funds,how much do they need to save annually?

Accepted Answer

A)  $7,238 
B)  $7,987 
C)  $8,103 
D)  $9,234 
E)  $9,875 
A)  $7,238 
B)  $7,987 
C)  $8,103 
D)  $9,234 
E)  $9,875

Question 9

The major mistake(s)people make in retirement planning is(are)

Accepted Answer

A)  starting too late. 
B)  saving too little. 
C)  investing too conservatively. 
D)  a and b 
E)  a,b,and c 
A)  starting too late. 
B)  saving too little. 
C)  investing too conservatively. 
D)  a and b 
E)  a,b,and c

Question 10

Jamie has worked for ABC Printing for 5 years.During this period ABC Printing has contributed $25,000 to her non-contributory retirement plan.Assuming ABC uses cliff vesting,the longest period allowed,how much will Jamie be able to roll into an IRA if she left ABC Printing?

Accepted Answer

A)  $ 0 
B)  $ 5,000 
C)  $10,000 
D)  $20,000 
E)  $25,000 
A)  $ 0 
B)  $ 5,000 
C)  $10,000 
D)  $20,000 
E)  $25,000

Question 11

In short-term retirement planning you estimate the required level of retirement income as a percentage of current income,fund that amount,and then adjust that number every 3 to 5 years.

Accepted Answer

A) True 
 B)False

Question 12

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 period during which annuity payments are made to the individual is called the [distribution | survivorship] period.

Accepted Answer

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

Question 13

Employee contributions to ____ plans do not reduce taxable income.

Accepted Answer

A)  403(b) 
B)  Thrift and savings 
C)  457 
D)  401(k) 
E)  a,b,and c 
A)  403(b) 
B)  Thrift and savings 
C)  457 
D)  401(k) 
E)  a,b,and c

Question 14

Danielle puts 8 percent of her paycheck in a 401(k)plan administered by her employer.Danielle earns $55,000 per year and is in the 28 percent tax category.What annual tax savings does she get from her contribution? If her employer matches contributions on the first 5% of her salary dollar for dollar and the second 5% 50 cents on the dollar,how much will her employer put into her account this year? (Show all work. )

Accepted Answer

Contribution = .08 * $55,000 = $4,400
Ta

Question 15

The proceeds of a variable annuity are dependent on the

Accepted Answer

A)  cost of living. 
B)  Consumer Price Index. 
C)  investment return. 
D)  tax rate. 
E)  actual investment. 
A)  cost of living. 
B)  Consumer Price Index. 
C)  investment return. 
D)  tax rate. 
E)  actual investment.

Question 16

The money you put into a Roth IRA is deductible from your taxable income in the year contributed.

Accepted Answer

A) True 
 B)False

Question 17

Supplemental retirement plans are usually voluntary.

Accepted Answer

A) True 
 B)False

Question 18

Sally and Patrick are married with 4 young children.Patrick stays at home with the kids while Sally works as CEO of a small manufacturing firm earning $105,000 annually.Sally is covered by a 401(k)plan at work,but they would like to maximize their IRA contributions as well.Which of the following are true assuming their AGI is $105,897?

Accepted Answer

A)  Sally and Patrick could each contribute $3,000 to a Roth IRA. 
B)  Sally and Patrick could each contribute $3,000 to a deductible traditional IRA. 
C)  Only Sally can contribute to any type of IRA.Patrick has no earned income. 
D)  Patrick could contribute $3,000 to either a deductible tradition IRA or a Roth IRA. 
E)  a and d 
A)  Sally and Patrick could each contribute $3,000 to a Roth IRA. 
B)  Sally and Patrick could each contribute $3,000 to a deductible traditional IRA. 
C)  Only Sally can contribute to any type of IRA.Patrick has no earned income. 
D)  Patrick could contribute $3,000 to either a deductible tradition IRA or a Roth IRA. 
E)  a and d

Question 19

Integrating a retirement plan with Social Security benefits typically increases a retiree's retirement income.

Accepted Answer

A) True 
 B)False

Question 20

The amount of money in your defined contribution retirement portfolio will depend on

Accepted Answer

A)  the age at which you begin contributing. 
B)  the amount of money you deposit each month. 
C)  the rate of return on your savings. 
D)  all of these. 
E)  none of these really make much difference. 
A)  the age at which you begin contributing. 
B)  the amount of money you deposit each month. 
C)  the rate of return on your savings. 
D)  all of these. 
E)  none of these really make much difference.

Self-employer workers pay twice as much for Social Security coverage compared to employed workers.

ERISA was passed to reduce the number of private employer retirement plans.

It is legal for employers to reduce an employee's pension as a result of receiving Social Security benefits.

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. -A self-employed person could set up a [Keogh | 403(b)] retirement plan.

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. -[401(k)| 403(b)] plans would be available for employees of a public,non-profit organization.

Gordon and Lisa estimate that they will need $1,875,000 in 40 years for their retirement years.If they can earn 8 percent annually on their funds,how much do they need to save annually?

The major mistake(s)people make in retirement planning is(are)

Jamie has worked for ABC Printing for 5 years.During this period ABC Printing has contributed $25,000 to her non-contributory retirement plan.Assuming ABC uses cliff vesting,the longest period allowed,how much will Jamie be able to roll into an IRA if she left ABC Printing?

In short-term retirement planning you estimate the required level of retirement income as a percentage of current income,fund that amount,and then adjust that number every 3 to 5 years.

Employee contributions to ____ plans do not reduce taxable income.

The proceeds of a variable annuity are dependent on the

The money you put into a Roth IRA is deductible from your taxable income in the year contributed.

Supplemental retirement plans are usually voluntary.

Integrating a retirement plan with Social Security benefits typically increases a retiree's retirement income.

The amount of money in your defined contribution retirement portfolio will depend on

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

Self-employer workers pay twice as much for Social Security coverage compared to employed workers.

ERISA was passed to reduce the number of private employer retirement plans.

It is legal for employers to reduce an employee's pension as a result of receiving Social Security benefits.

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. -A self-employed person could set up a [Keogh | 403(b)] retirement plan.

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. -[401(k)| 403(b)] plans would be available for employees of a public,non-profit organization.

Gordon and Lisa estimate that they will need $1,875,000 in 40 years for their retirement years.If they can earn 8 percent annually on their funds,how much do they need to save annually?

The major mistake(s)people make in retirement planning is(are)

Jamie has worked for ABC Printing for 5 years.During this period ABC Printing has contributed $25,000 to her non-contributory retirement plan.Assuming ABC uses cliff vesting,the longest period allowed,how much will Jamie be able to roll into an IRA if she left ABC Printing?

In short-term retirement planning you estimate the required level of retirement income as a percentage of current income,fund that amount,and then adjust that number every 3 to 5 years.

Employee contributions to ____ plans do not reduce taxable income.

The proceeds of a variable annuity are dependent on the

The money you put into a Roth IRA is deductible from your taxable income in the year contributed.

Supplemental retirement plans are usually voluntary.

Integrating a retirement plan with Social Security benefits typically increases a retiree's retirement income.

The amount of money in your defined contribution retirement portfolio will depend on

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