Question 1

The Social Security office will require you to provide proof of your age to apply for Social Security benefits.

Accepted Answer

A) True 
 B)False  True

Question 2

With a fixed-dollar annuity,the money you pay is invested in common stocks or other equities that have a guaranteed return.

Accepted Answer

A) True 
 B)False  False

Question 3

Beverly Foster is planning for her retirement.She has determined that her car is worth $12,000,her home is worth $160,000,her personal belongings are worth $80,000,and her stocks and bonds are worth $250,000.She owes $50,000 on her home and $5,000 on her car.What step in the retirement planning process is Beverly completing?

Accepted Answer

A) Analyzing her current assets and liabilities 
B) Estimating her spending needs 
C) Evaluating her planned retirement income 
D) Evaluating her retirement housing 
E) Developing a balanced budget based on her retirement income 
A) Analyzing her current assets and liabilities 
B) Estimating her spending needs 
C) Evaluating her planned retirement income 
D) Evaluating her retirement housing 
E) Developing a balanced budget based on her retirement income A

Question 4

Social Security was originally intended to provide 100 percent of retirement income.

Accepted Answer

A) True 
 B)False

Question 5

Social Security covers approximately what percent of all U.S.workers?

Accepted Answer

A) 72 
B) 78 
C) 86 
D) 97 
E) 99 
A) 72 
B) 78 
C) 86 
D) 97 
E) 99

Question 6

Once you retire,which of the following is true about drawing on your savings?

Accepted Answer

A) Timing depends on your financial circumstances. 
B) Timing depends on your age. 
C) Timing depends on how much you want to leave to your heirs. 
D) You should do so with caution. 
E) All of these are true 
A) Timing depends on your financial circumstances. 
B) Timing depends on your age. 
C) Timing depends on how much you want to leave to your heirs. 
D) You should do so with caution. 
E) All of these are true

Question 7

A defined-contribution plan has an individual account for each employee; therefore,these plans are also called individual account plans.

Accepted Answer

A) True 
 B)False

Question 8

During retirement,you should increase your premium payments by increasing the face value of your life insurance.

Accepted Answer

A) True 
 B)False

Question 9

Which employer retirement plan specifies the benefits promised to the employee at the normal retirement age?

Accepted Answer

A) Defined-contribution plan 
B) SEP IRA 
C) 401(k) 
D) Roth IRA 
E) Defined-benefit plan 
A) Defined-contribution plan 
B) SEP IRA 
C) 401(k) 
D) Roth IRA 
E) Defined-benefit plan

Question 10

If you work after age 65,your Social Security benefit will increase by one-fourth of one percent for each month you delay retirement up until what age?

Accepted Answer

A) 67 
B) 70 
C) 75 
D) 80 
E) 85 
A) 67 
B) 70 
C) 75 
D) 80 
E) 85

Question 11

Describe 4 of the 7 misconceptions about retirement planning found in the chapter and explain what you should do if you hold any of these.

Accepted Answer

The ground rules for retirement planning

Question 12

Which one of the following is a true statement about retirement planning?

Accepted Answer

A) I should wait until at least age 45 to start planning for retirement. 
B) My pension benefits will increase to keep pace with inflation. 
C) I should update my retirement plan periodically. 
D) My employer's health insurance plan will cover my medical expenses. 
E) Social Security will cover my basic living expenses. 
A) I should wait until at least age 45 to start planning for retirement. 
B) My pension benefits will increase to keep pace with inflation. 
C) I should update my retirement plan periodically. 
D) My employer's health insurance plan will cover my medical expenses. 
E) Social Security will cover my basic living expenses.

Question 13

Annuity payouts may either be a fixed or a variable amount.

Accepted Answer

A) True 
 B)False

Question 14

What types of housing options are available to retirees?

Accepted Answer

Staying in their present home,whether a

Question 15

The exact amount of money you will need in retirement can be predicted accurately.

Accepted Answer

A) True 
 B)False

Question 16

Cynthia Coleman is reviewing her assets and liabilities.What is her net worth?
Assets:
Cash in checking account,$1,000
Cash in savings account,$2,800
Current value of Investments in U.S.savings bonds,$4,000
Current value of Investments in stocks & mutual funds,$9,700
Current cash value of life insurance,$7,300
Current value Accrued pension benefit,$25,000
Current value of house,$155,000
Current value of furniture and appliances,$8,000
Current value of Jewelry,$600
Current value of automobile,$7,200
Liabilities:
Current unpaid bills,$800
Home mortgage unpaid balance,$100,000
Auto loan unpaid balance,$3,200
Property Taxes owed,$1,000
Home improvement loan balance,$1,200

Accepted Answer

Gross assets (220,60

Question 17

An annuity provides guaranteed income for life.

Accepted Answer

A) True 
 B)False

Question 18

The average 2018 monthly Social Security benefit for a retired worker is approximately $1,408.

Accepted Answer

A) True 
 B)False

Question 19

The law exempts all Social Security benefits from federal income taxes.

Accepted Answer

A) True 
 B)False

Question 20

If you did not start early to prepare for retirement,what are 5 tips to help you prepare for retirement when there is little time left?

Accepted Answer

Answers will vary.
• It's never too late

The Social Security office will require you to provide proof of your age to apply for Social Security benefits.

With a fixed-dollar annuity,the money you pay is invested in common stocks or other equities that have a guaranteed return.

Social Security was originally intended to provide 100 percent of retirement income.

Social Security covers approximately what percent of all U.S.workers?

Once you retire,which of the following is true about drawing on your savings?

A defined-contribution plan has an individual account for each employee; therefore,these plans are also called individual account plans.

During retirement,you should increase your premium payments by increasing the face value of your life insurance.

Which employer retirement plan specifies the benefits promised to the employee at the normal retirement age?

If you work after age 65,your Social Security benefit will increase by one-fourth of one percent for each month you delay retirement up until what age?

Describe 4 of the 7 misconceptions about retirement planning found in the chapter and explain what you should do if you hold any of these.

Which one of the following is a true statement about retirement planning?

Annuity payouts may either be a fixed or a variable amount.

What types of housing options are available to retirees?

The exact amount of money you will need in retirement can be predicted accurately.

An annuity provides guaranteed income for life.

The average 2018 monthly Social Security benefit for a retired worker is approximately $1,408.

The law exempts all Social Security benefits from federal income taxes.

If you did not start early to prepare for retirement,what are 5 tips to help you prepare for retirement when there is little time left?

Personal Finance Basics and the Time Value of Money

Financial Aspects of Career Planning

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

Financial Services: Savings Plans and Payment Accounts

Introduction to Consumer Credit

Choosing a Source of Credit: the Costs of Credit Alternatives

Consumer Purchasing Strategies and Legal Protection

The Housing Decision: Factors and Finances

Property and Motor Vehicle Insurance

Health,disability,and Long-Term Care Insurance

Life Insurance

Investing Fundamentals

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Investing in Real Estate and Other Investment Alternatives

Estate Planning

Filters

Exam 18: Starting Early: Retirement Planning

The Social Security office will require you to provide proof of your age to apply for Social Security benefits.

With a fixed-dollar annuity,the money you pay is invested in common stocks or other equities that have a guaranteed return.

Social Security was originally intended to provide 100 percent of retirement income.

Social Security covers approximately what percent of all U.S.workers?

Once you retire,which of the following is true about drawing on your savings?

A defined-contribution plan has an individual account for each employee; therefore,these plans are also called individual account plans.

During retirement,you should increase your premium payments by increasing the face value of your life insurance.

Which employer retirement plan specifies the benefits promised to the employee at the normal retirement age?

If you work after age 65,your Social Security benefit will increase by one-fourth of one percent for each month you delay retirement up until what age?

Describe 4 of the 7 misconceptions about retirement planning found in the chapter and explain what you should do if you hold any of these.

Which one of the following is a true statement about retirement planning?

Annuity payouts may either be a fixed or a variable amount.

What types of housing options are available to retirees?

The exact amount of money you will need in retirement can be predicted accurately.

An annuity provides guaranteed income for life.

The average 2018 monthly Social Security benefit for a retired worker is approximately $1,408.

The law exempts all Social Security benefits from federal income taxes.

If you did not start early to prepare for retirement,what are 5 tips to help you prepare for retirement when there is little time left?

Personal Finance Basics and the Time Value of Money

Financial Aspects of Career Planning

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

Financial Services: Savings Plans and Payment Accounts

Introduction to Consumer Credit

Choosing a Source of Credit: the Costs of Credit Alternatives

Consumer Purchasing Strategies and Legal Protection

The Housing Decision: Factors and Finances

Property and Motor Vehicle Insurance

Health,disability,and Long-Term Care Insurance

Life Insurance

Investing Fundamentals

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Investing in Real Estate and Other Investment Alternatives

Estate Planning

Filters