Exam 18: Starting Early: Retirement Planning

It is almost certain that your pension benefits will increase to keep pace with inflation.

The shift to defined-contribution plans has forced employees to take more responsibility for their retirement.

What is most likely to be an individual's single biggest asset?

The biggest benefit of an IRA lies in its tax-deferred earnings growth; the longer the money accumulates tax deferred,the bigger the benefit.

You can depend on your employer's health insurance plan and Medicare to pay all your medical expenses when you retire.

You can determine your net worth by:

Which type of housing is preferred by most people who are approaching retirement?

If you are a government employee,then the salary reduction plan may be a Section 457 plan.

If you leave your company before you retire,then you have a right to a portion of the benefits you have accrued under an employer pension plan only if you are vested.

A SEP-IRA plan is simply an individual retirement account funded by the employer.

Which of the following is typically a characteristic of a defined benefit plan?

Developing the habit of saving for retirement is easier when you are:

During retirement,as long as you do not earn more than the annually exempt amount through part-time work,your Social Security payments will not be affected.

What are the basic steps in retirement planning?

It is vital to engage in basic retirement planning activities throughout your working years.

Besides Social Security,the federal government administers several other retirement plans for federal government and railroad employees.

If you work after 65,your Social Security benefits will neither increase nor decrease.

If your employer is a tax-exempt institution such as a hospital,university,or museum,then the salary reduction plan is called a Section 403(b)plan.

More than half of Americans ages 65 to 74 are still in the workforce.

Under certain circumstances,the Roth IRA allows for tax-free,penalty-free distributions.