Question 1

Your Social Security benefits may be reduced if you earn above a certain amount a year,depending on your age and the amount you earn.

Accepted Answer

A) True 
 B)False

Question 2

In a Roth IRA,contributions are not tax deductible,but earnings accumulate tax free.

Accepted Answer

A) True 
 B)False

Question 3

What type of annuity is generally purchased by people of retirement age?

Accepted Answer

A) Deferred annuity 
B) Immediate annuity 
C) Single-premium deferred annuity 
D) Flexible-premium deferred annuity 
E) Keogh annuity 
A) Deferred annuity 
B) Immediate annuity 
C) Single-premium deferred annuity 
D) Flexible-premium deferred annuity 
E) Keogh annuity

Question 4

The Social Security Administration provides a history of your earnings and an estimate of your future monthly benefits online.

Accepted Answer

A) True 
 B)False

Question 5

Social Security benefits do not increase even if the cost of living increased during the preceding year.

Accepted Answer

A) True 
 B)False

Question 6

You can get a reverse annuity mortgage if:

Accepted Answer

A) you are willing to sell your house immediately. 
B) you buy a new home and pay only a minimal down payment. 
C) your mortgage is largely or completely paid off. 
D) you owe more in monthly mortgage interest than the annuity amount. 
E) you are willing to allow your principal mortgage balance to increase monthly. 
A) you are willing to sell your house immediately. 
B) you buy a new home and pay only a minimal down payment. 
C) your mortgage is largely or completely paid off. 
D) you owe more in monthly mortgage interest than the annuity amount. 
E) you are willing to allow your principal mortgage balance to increase monthly.

Question 7

Which one of the following is not a private source of retirement income?

Accepted Answer

A) Traditional IRAs 
B) Social Security 
C) Defined contribution plans 
D) Defined benefit plans 
E) Spousal IRAs 
A) Traditional IRAs 
B) Social Security 
C) Defined contribution plans 
D) Defined benefit plans 
E) Spousal IRAs

Question 8

Inflation increases the purchasing power of your retirement savings.

Accepted Answer

A) True 
 B)False

Question 9

Which federal law sets minimum standards for pension plans in private industry and protects more than 50 million workers?

Accepted Answer

A) Employee Retirement Income Security Act 
B) Tax Reform Act 
C) Early Retirement Act 
D) Income Protection and Guarantee Act 
E) Civil Rights Act 
A) Employee Retirement Income Security Act 
B) Tax Reform Act 
C) Early Retirement Act 
D) Income Protection and Guarantee Act 
E) Civil Rights Act

Question 10

According to the Securities and Exchange Commission,one of the easiest ways to boost your retirement savings is:

Accepted Answer

A) apply for Social Security 
B) save by regular,automatic deductions from your paycheck 
C) move to less expensive housing 
D) rent out a room in your house 
E) begin saving a lot when you reach age 45 
A) apply for Social Security 
B) save by regular,automatic deductions from your paycheck 
C) move to less expensive housing 
D) rent out a room in your house 
E) begin saving a lot when you reach age 45

Question 11

Explain the difference between a defined-contribution and defined-benefit plan.

Accepted Answer

Answers will vary.A defined-contribution

Question 12

At a 3 percent rate of inflation,approximately how many years will it take for prices to double?

Accepted Answer

A) 9 years 
B) 15 years 
C) 21 years 
D) 24 years 
E) 30 years 
A) 9 years 
B) 15 years 
C) 21 years 
D) 24 years 
E) 30 years

Question 13

Social Security is a package of protection,providing retirement,survivors',and disability benefits.

Accepted Answer

A) True 
 B)False

Question 14

Which is correct with respect to life expectancy?

Accepted Answer

A) Men have a longer life expectancy than women at age 65. 
B) There is no difference in life expectancy between men and women at age 65. 
C) Women have a longer life expectancy than men at age 65. 
D) There is no difference in life expectancy among retirees in retirement communities at age 65. 
E) At age 65,the average life expectancy for a man is 25 years. 
A) Men have a longer life expectancy than women at age 65. 
B) There is no difference in life expectancy between men and women at age 65. 
C) Women have a longer life expectancy than men at age 65. 
D) There is no difference in life expectancy among retirees in retirement communities at age 65. 
E) At age 65,the average life expectancy for a man is 25 years.

Question 15

Which of the following is not a question that will help assess your financial condition as you approach retirement?

Accepted Answer

A) Do you know where your health insurance will come from after retirement? 
B) Do you save according to your retirement plan,shifting from safe investments to risky,growth type investments? 
C) Do you have your own credit history? 
D) Do you talk regularly and frankly to family members about retirement finances? 
E) Do you know where you plan to live in retirement? 
A) Do you know where your health insurance will come from after retirement? 
B) Do you save according to your retirement plan,shifting from safe investments to risky,growth type investments? 
C) Do you have your own credit history? 
D) Do you talk regularly and frankly to family members about retirement finances? 
E) Do you know where you plan to live in retirement?

Question 16

People born after 1928 need at least how many quarters of coverage to qualify for Social Security benefits?

Accepted Answer

A) 20 
B) 40 
C) 60 
D) 80 
E) 100 
A) 20 
B) 40 
C) 60 
D) 80 
E) 100

Question 17

Why is it important to review your assets and liabilities before your retirement?

Accepted Answer

Reviewing your assets and liabilities is

Question 18

Profit-sharing plans and 401(k)plans are examples of defined-contribution plans.

Accepted Answer

A) True 
 B)False

Question 19

Sarah Logan is a professor at a public university.Her employer makes nontaxable contributions to a plan in her name and reduces her salary by the same amount.What type of retirement plan does Sarah have?

Accepted Answer

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

Question 20

Your Social Security payments will start at age 65 whether you apply for benefits or not.

Accepted Answer

A) True 
 B)False

Your Social Security benefits may be reduced if you earn above a certain amount a year,depending on your age and the amount you earn.

In a Roth IRA,contributions are not tax deductible,but earnings accumulate tax free.

What type of annuity is generally purchased by people of retirement age?

The Social Security Administration provides a history of your earnings and an estimate of your future monthly benefits online.

Social Security benefits do not increase even if the cost of living increased during the preceding year.

You can get a reverse annuity mortgage if:

Which one of the following is not a private source of retirement income?

Inflation increases the purchasing power of your retirement savings.

Which federal law sets minimum standards for pension plans in private industry and protects more than 50 million workers?

According to the Securities and Exchange Commission,one of the easiest ways to boost your retirement savings is:

Explain the difference between a defined-contribution and defined-benefit plan.

At a 3 percent rate of inflation,approximately how many years will it take for prices to double?

Social Security is a package of protection,providing retirement,survivors',and disability benefits.

Which is correct with respect to life expectancy?

Which of the following is not a question that will help assess your financial condition as you approach retirement?

People born after 1928 need at least how many quarters of coverage to qualify for Social Security benefits?

Why is it important to review your assets and liabilities before your retirement?

Profit-sharing plans and 401(k)plans are examples of defined-contribution plans.

Sarah Logan is a professor at a public university.Her employer makes nontaxable contributions to a plan in her name and reduces her salary by the same amount.What type of retirement plan does Sarah have?

Your Social Security payments will start at age 65 whether you apply for benefits or not.

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

Your Social Security benefits may be reduced if you earn above a certain amount a year,depending on your age and the amount you earn.

In a Roth IRA,contributions are not tax deductible,but earnings accumulate tax free.

What type of annuity is generally purchased by people of retirement age?

The Social Security Administration provides a history of your earnings and an estimate of your future monthly benefits online.

Social Security benefits do not increase even if the cost of living increased during the preceding year.

You can get a reverse annuity mortgage if:

Which one of the following is not a private source of retirement income?

Inflation increases the purchasing power of your retirement savings.

Which federal law sets minimum standards for pension plans in private industry and protects more than 50 million workers?

According to the Securities and Exchange Commission,one of the easiest ways to boost your retirement savings is:

Explain the difference between a defined-contribution and defined-benefit plan.

At a 3 percent rate of inflation,approximately how many years will it take for prices to double?

Social Security is a package of protection,providing retirement,survivors',and disability benefits.

Which is correct with respect to life expectancy?

Which of the following is not a question that will help assess your financial condition as you approach retirement?

People born after 1928 need at least how many quarters of coverage to qualify for Social Security benefits?

Why is it important to review your assets and liabilities before your retirement?

Profit-sharing plans and 401(k)plans are examples of defined-contribution plans.

Sarah Logan is a professor at a public university.Her employer makes nontaxable contributions to a plan in her name and reduces her salary by the same amount.What type of retirement plan does Sarah have?

Your Social Security payments will start at age 65 whether you apply for benefits or not.

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