Question 1

Because of longer life expectancies,the full retirement age is greater than age 65 for younger individuals.

Accepted Answer

A) True 
 B)False

Question 2

Saving now for the future requires tackling the trade-offs between spending and saving.

Accepted Answer

A) True 
 B)False

Question 3

Although the full retirement age is rising,you should still apply for Social Security benefits three months before your 65th birthday.

Accepted Answer

A) True 
 B)False

Question 4

When a lender uses your house as collateral to buy an annuity for you from a life insurance company,it is called a reverse annuity mortgage or:

Accepted Answer

A) an obverse annuity mortgage. 
B) an equity conversion. 
C) mortgage life insurance. 
D) a level-premium annuity. 
E) whole life insurance. 
A) an obverse annuity mortgage. 
B) an equity conversion. 
C) mortgage life insurance. 
D) a level-premium annuity. 
E) whole life insurance.

Question 5

Ted Riley owns a vehicle worth $20,000 and a home worth $230,000.He has a checking account balance of $1,000,a savings account balance of $1,000,and a mutual fund worth $75,000.His personal assets are worth $100,000.He still owes $10,000 on his car,$101,000 on his home,and $1,000 on his credit card.What is Ted's net worth?

Accepted Answer

A) $538,000 
B) $427,000 
C) $315,000 
D) $112,000 
E) $136,000 
A) $538,000 
B) $427,000 
C) $315,000 
D) $112,000 
E) $136,000

Question 6

What types of expenses might increase during retirement?

Accepted Answer

Medical expenses,insurance,and expenses

Question 7

What are the possible sources of income for retirees?

Accepted Answer

Answers will vary.Possible private sourc

Question 8

Your expenses for leisure activities will probably decrease during retirement.

Accepted Answer

A) True 
 B)False

Question 9

In a marriage that lasts more than 15 years,there's generally a ________ split of the marital assets during a divorce.

Accepted Answer

A) 10-90 
B) 30-70 
C) 40-60 
D) 50-50 
E) 60-40 
A) 10-90 
B) 30-70 
C) 40-60 
D) 50-50 
E) 60-40

Question 10

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

Accepted Answer

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

Question 11

Divorce creates difficulties when it comes to division of marital assets for adults thinking about their retirement years.

Accepted Answer

A) True 
 B)False

Question 12

Almost one out of every ________ Americans collects some kind of Social Security benefit.

Accepted Answer

A) 2 
B) 4 
C) 5 
D) 6 
E) 10 
A) 2 
B) 4 
C) 5 
D) 6 
E) 10

Question 13

Which of the following are considered tax-sheltered annuity plans?

Accepted Answer

A) Education IRAs 
B) Stock bonus plans 
C) Profit-sharing plans 
D) Money-purchase pension plans 
E) 401(k)plans,Section 403(b)plans,and Section 457 plans 
A) Education IRAs 
B) Stock bonus plans 
C) Profit-sharing plans 
D) Money-purchase pension plans 
E) 401(k)plans,Section 403(b)plans,and Section 457 plans

Question 14

Only by saving now and curtailing current spending can you ensure a comfortable retirement later.

Accepted Answer

A) True 
 B)False

Question 15

Possible sources of income for many retirees include:

Accepted Answer

A) Social Security 
B) Other public pension plans 
C) Employer pension plans 
D) Personal retirement plans 
E) All of these 
A) Social Security 
B) Other public pension plans 
C) Employer pension plans 
D) Personal retirement plans 
E) All of these

Question 16

Which retirement plan was specifically developed for self-employed individuals and their employees?

Accepted Answer

A) Roth IRA 
B) Traditional IRA 
C) Defined-contribution plan 
D) Keogh plan 
E) Defined-benefit plan 
A) Roth IRA 
B) Traditional IRA 
C) Defined-contribution plan 
D) Keogh plan 
E) Defined-benefit plan

Question 17

Immediate annuities provide income payments at once and are usually purchased with a lump-sum payment.

Accepted Answer

A) True 
 B)False

Question 18

Your federal income taxes will probably be lower during the retirement years.

Accepted Answer

A) True 
 B)False

Question 19

Why is retirement planning important?

Accepted Answer

Answers will vary.
Retirement planning i

Question 20

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

Accepted Answer

A) Medical expenses 
B) Federal income taxes 
C) Clothing expenses 
D) Work-related expenses 
E) Housing expenses 
A) Medical expenses 
B) Federal income taxes 
C) Clothing expenses 
D) Work-related expenses 
E) Housing expenses

Because of longer life expectancies,the full retirement age is greater than age 65 for younger individuals.

Saving now for the future requires tackling the trade-offs between spending and saving.

Although the full retirement age is rising,you should still apply for Social Security benefits three months before your 65th birthday.

When a lender uses your house as collateral to buy an annuity for you from a life insurance company,it is called a reverse annuity mortgage or:

What types of expenses might increase during retirement?

What are the possible sources of income for retirees?

Your expenses for leisure activities will probably decrease during retirement.

In a marriage that lasts more than 15 years,there's generally a ________ split of the marital assets during a divorce.

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

Divorce creates difficulties when it comes to division of marital assets for adults thinking about their retirement years.

Almost one out of every ________ Americans collects some kind of Social Security benefit.

Which of the following are considered tax-sheltered annuity plans?

Only by saving now and curtailing current spending can you ensure a comfortable retirement later.

Possible sources of income for many retirees include:

Which retirement plan was specifically developed for self-employed individuals and their employees?

Immediate annuities provide income payments at once and are usually purchased with a lump-sum payment.

Your federal income taxes will probably be lower during the retirement years.

Why is retirement planning important?

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

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

Because of longer life expectancies,the full retirement age is greater than age 65 for younger individuals.

Saving now for the future requires tackling the trade-offs between spending and saving.

Although the full retirement age is rising,you should still apply for Social Security benefits three months before your 65th birthday.

When a lender uses your house as collateral to buy an annuity for you from a life insurance company,it is called a reverse annuity mortgage or:

What types of expenses might increase during retirement?

What are the possible sources of income for retirees?

Your expenses for leisure activities will probably decrease during retirement.

In a marriage that lasts more than 15 years,there's generally a ________ split of the marital assets during a divorce.

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

Divorce creates difficulties when it comes to division of marital assets for adults thinking about their retirement years.

Almost one out of every ________ Americans collects some kind of Social Security benefit.

Which of the following are considered tax-sheltered annuity plans?

Only by saving now and curtailing current spending can you ensure a comfortable retirement later.

Possible sources of income for many retirees include:

Which retirement plan was specifically developed for self-employed individuals and their employees?

Immediate annuities provide income payments at once and are usually purchased with a lump-sum payment.

Your federal income taxes will probably be lower during the retirement years.

Why is retirement planning important?

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

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