Question 1

Which statement is most likely correct about retirement planning?

Accepted Answer

A) Social Security is sufficient to cover your cost of living. 
B) Your employer's pension combined with your Social Security will cover your basic living expenses. 
C) Most retirees don't need to worry about inflation. 
D) Your pension may remain constant and not keep pace with inflation. 
E) Your expenses will drop once you retire. 
A) Social Security is sufficient to cover your cost of living. 
B) Your employer's pension combined with your Social Security will cover your basic living expenses. 
C) Most retirees don't need to worry about inflation. 
D) Your pension may remain constant and not keep pace with inflation. 
E) Your expenses will drop once you retire.

Question 2

For the average individual,which one of the following statements is most likely correct regarding retirement?

Accepted Answer

A) My costs of daily living will decrease significantly once I retire. 
B) I can only expect to live about ten years in retirement,so I don't need to save that much money. 
C) Once I retire,all my medical bills will be paid by Medicare. 
D) My employer's pension plan will provide sufficient income to meet all my retirement needs. 
E) I need to save whatever I can,even if it's a little bit,to help cover my retirement costs. 
A) My costs of daily living will decrease significantly once I retire. 
B) I can only expect to live about ten years in retirement,so I don't need to save that much money. 
C) Once I retire,all my medical bills will be paid by Medicare. 
D) My employer's pension plan will provide sufficient income to meet all my retirement needs. 
E) I need to save whatever I can,even if it's a little bit,to help cover my retirement costs.

Question 3

Which type of housing is designed to allow people to stay in their homes as they grow older and more frail?

Accepted Answer

A) Two-story house 
B) Multi-story apartment complex 
C) Rooming house 
D) Universal design 
E) Rental unit 
A) Two-story house 
B) Multi-story apartment complex 
C) Rooming house 
D) Universal design 
E) Rental unit

Question 4

People born after 1928 need at least 60 quarters of coverage to qualify for Social Security benefits.

Accepted Answer

A) True 
 B)False

Question 5

The first step in stretching your retirement income is to make sure you are receiving all of the income to which you are entitled.

Accepted Answer

A) True 
 B)False

Question 6

Nancy Moore is planning for her retirement.She guesses that by the time she retires,her mortgage will be paid off on her home.She expects she will pay $600 a month on food and that her medical expenses will be $400 a month.She also estimates that she will spend $400 a month on things that she enjoys like traveling,going to concerts,reading and other similar activities.What step in the retirement planning process is Nancy 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

Question 7

John Carpenter works as a manager of a retail store.His employer has been setting money aside for him each month in the amount of 7 percent of his monthly earnings.What type of retirement plan does John have?

Accepted Answer

A) Money-purchase pension plan 
B) Stock bonus plan 
C) Profit-sharing plan 
D) 403(b)plan 
E) Defined benefit plan 
A) Money-purchase pension plan 
B) Stock bonus plan 
C) Profit-sharing plan 
D) 403(b)plan 
E) Defined benefit plan

Question 8

Keogh plans can be defined-contribution plans or defined-benefit plans.

Accepted Answer

A) True 
 B)False

Question 9

Which statement is correct regarding retirement living expenses?

Accepted Answer

A) It is impossible to estimate your spending needs. 
B) Your spending patterns will probably not change. 
C) You'll use a smaller share of your income for food,housing,and medical care than non-retired families. 
D) The exact amount of money you'll need is impossible to predict. 
E) Work-related expenses,such as driving back and forth to work,tend to be higher during retirement. 
A) It is impossible to estimate your spending needs. 
B) Your spending patterns will probably not change. 
C) You'll use a smaller share of your income for food,housing,and medical care than non-retired families. 
D) The exact amount of money you'll need is impossible to predict. 
E) Work-related expenses,such as driving back and forth to work,tend to be higher during retirement.

Question 10

Although medical expenses vary from person to person,they tend to decrease with age.

Accepted Answer

A) True 
 B)False

Question 11

Your assets include everything you own that has value.

Accepted Answer

A) True 
 B)False

Question 12

Some retirement planning experts suggest that you start retirement planning while you are:

Accepted Answer

A) in school. 
B) married. 
C) divorced. 
D) middle-aged. 
E) still employed. 
A) in school. 
B) married. 
C) divorced. 
D) middle-aged. 
E) still employed.

Question 13

Before you get a reverse mortgage of any kind,consider that:

Accepted Answer

A) there are origination fees,closing costs,servicing fees,and mortgage insurance premiums 
B) interest rates may change over the life of the mortgage 
C) you are still responsible for property taxes,insurance,utilities,and maintenance expenses 
D) you may leave fewer or no assets for your heirs 
E) All of these should be considered. 
A) there are origination fees,closing costs,servicing fees,and mortgage insurance premiums 
B) interest rates may change over the life of the mortgage 
C) you are still responsible for property taxes,insurance,utilities,and maintenance expenses 
D) you may leave fewer or no assets for your heirs 
E) All of these should be considered.

Question 14

Why is financial planning for retirement critically important?

Accepted Answer

A) You can expect to live in retirement up to 30 years. 
B) Social Security and your private pension may be insufficient to cover the cost of living. 
C) Inflation may diminish the purchasing power of your retirement savings. 
D) You can expect to live in retirement for a minimum of 16 years. 
E) All of the listed factors are critically important. 
A) You can expect to live in retirement up to 30 years. 
B) Social Security and your private pension may be insufficient to cover the cost of living. 
C) Inflation may diminish the purchasing power of your retirement savings. 
D) You can expect to live in retirement for a minimum of 16 years. 
E) All of the listed factors are critically important.

Question 15

According to the Social Security Administration,disabled workers represent 14% of those who receive Social Security benefits.

Accepted Answer

A) True 
 B)False

Question 16

Jasmine Smith owns a condo worth $250,000,a car valued at $15,000,and miscellaneous assets worth $7,000.She owes $125,000 on the condo and $10,000 on the car and has no other debts.Her retirement account,in which she is fully vested,contains $28,000 in mutual funds.She was just insured with a $200,000 term life insurance policy.What are her total assets?

Accepted Answer

A) $200,000 
B) $300,000 
C) $100,000 
D) $592,500 
E) $600,000 
A) $200,000 
B) $300,000 
C) $100,000 
D) $592,500 
E) $600,000

Question 17

You can keep money in most retirement plans indefinitely.

Accepted Answer

A) True 
 B)False

Question 18

Which one of the following expenses for retirees is most likely to decrease?

Accepted Answer

A) Clothing expenses 
B) Insurance expenses 
C) Medical expenses 
D) Expenses for leisure activities 
E) Gifts and contributions 
A) Clothing expenses 
B) Insurance expenses 
C) Medical expenses 
D) Expenses for leisure activities 
E) Gifts and contributions

Question 19

According to the U.S.Bureau of Labor Statistics,the annual inflation rate in the United States was ________ percent in April 2018.

Accepted Answer

A) 1 
B) 2.5 
C) 3 
D) 3.5 
E) 4 
A) 1 
B) 2.5 
C) 3 
D) 3.5 
E) 4

Question 20

Most employer pension plans are either defined-contribution or defined-benefit plans.

Accepted Answer

A) True 
 B)False

Which statement is most likely correct about retirement planning?

For the average individual,which one of the following statements is most likely correct regarding retirement?

Which type of housing is designed to allow people to stay in their homes as they grow older and more frail?

People born after 1928 need at least 60 quarters of coverage to qualify for Social Security benefits.

The first step in stretching your retirement income is to make sure you are receiving all of the income to which you are entitled.

John Carpenter works as a manager of a retail store.His employer has been setting money aside for him each month in the amount of 7 percent of his monthly earnings.What type of retirement plan does John have?

Keogh plans can be defined-contribution plans or defined-benefit plans.

Which statement is correct regarding retirement living expenses?

Although medical expenses vary from person to person,they tend to decrease with age.

Your assets include everything you own that has value.

Some retirement planning experts suggest that you start retirement planning while you are:

Before you get a reverse mortgage of any kind,consider that:

Why is financial planning for retirement critically important?

According to the Social Security Administration,disabled workers represent 14% of those who receive Social Security benefits.

You can keep money in most retirement plans indefinitely.

Which one of the following expenses for retirees is most likely to decrease?

According to the U.S.Bureau of Labor Statistics,the annual inflation rate in the United States was ________ percent in April 2018.

Most employer pension plans are either defined-contribution or defined-benefit plans.

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

Which statement is most likely correct about retirement planning?

For the average individual,which one of the following statements is most likely correct regarding retirement?

Which type of housing is designed to allow people to stay in their homes as they grow older and more frail?

People born after 1928 need at least 60 quarters of coverage to qualify for Social Security benefits.

The first step in stretching your retirement income is to make sure you are receiving all of the income to which you are entitled.

John Carpenter works as a manager of a retail store.His employer has been setting money aside for him each month in the amount of 7 percent of his monthly earnings.What type of retirement plan does John have?

Keogh plans can be defined-contribution plans or defined-benefit plans.

Which statement is correct regarding retirement living expenses?

Although medical expenses vary from person to person,they tend to decrease with age.

Your assets include everything you own that has value.

Some retirement planning experts suggest that you start retirement planning while you are:

Before you get a reverse mortgage of any kind,consider that:

Why is financial planning for retirement critically important?

According to the Social Security Administration,disabled workers represent 14% of those who receive Social Security benefits.

You can keep money in most retirement plans indefinitely.

Which one of the following expenses for retirees is most likely to decrease?

According to the U.S.Bureau of Labor Statistics,the annual inflation rate in the United States was ________ percent in April 2018.

Most employer pension plans are either defined-contribution or defined-benefit plans.

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