Exam 18: Starting Early: Retirement Planning

Karen Endicott is planning for her retirement.She knows that after she retires she will no longer need her own single family dwelling.She plans on buying a condominium in Chicago,close to the bus and train line and close to a grocery store.What step in the retirement planning process is Karen completing?

Jeremiah Brown has been making contributions into an individual retirement account for his retirement.His contributions are not tax deductible but his earnings accumulate tax free.What type of individual retirement account does he have?

Which one of the following is the most widely used source of retirement income?

Generally,the current value of your jewelry is not included in your assets.

Your contribution to a Traditional IRA is fully tax deductible regardless of your filing status and your income.

Money-purchase pension plans,stock bonus plans,profit-sharing plans,401(k)plans,403(b)plans,and Section 457 plans are examples of defined-contribution plans.

You can only buy an annuity by making periodic payments.

All earnings in a tax-sheltered annuity grow without current federal taxation.

You can borrow from your Roth IRA.

For every 10 years you delay before starting retirement,you will need to save ________ times as much each month to catch up.

Jasmine Smith owns a condo worth $250,000,a car valued at $15,000,and miscellaneous assets worth $7,500.She owes $190,000 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 $300,000 term life insurance policy.What are her total liabilities?

Which of the following is not true of unforeseen expenses?

A successful,happy retirement just doesn't happen; it takes planning and continual evaluation.

How can retirees avoid being surprised by hidden tax and financial traps when they move?

What are the two most popular personal retirement plans?

You may convert your traditional IRA to a Roth IRA.

Which one of the following is probably the best suggestion for staying within your retirement income?

If a rollover from a retirement fund or other IRA is not made directly to a similar employer-provided retirement plan or an IRA,there will be a mandatory federal income tax withholding equal to what percent of the taxable distribution?

Because of their actuarial aspects,defined-benefit plans tend to be more complicated and more expensive to administer than defined-contribution plans.

According to the 2015 OASDI Trustees Report,"Social Security is not sustainable over the long term at current benefit and tax rates."