Question 1

An investor's principal source of retirement income is social security retirement funds.

Accepted Answer

A) True 
 B)False

Question 2

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-[Earned income | 401k's] has accounted for a growing amount of total retirement income.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 3

Self directed retirement accounts such as Keogh and SEP accounts can be set up at

Accepted Answer

A)  banks. 
B)  brokerage houses. 
C)  insurance companies. 
D)  mutual fund companies. 
E)  All of the above 
A)  banks. 
B)  brokerage houses. 
C)  insurance companies. 
D)  mutual fund companies. 
E)  All of the above

Question 4

When setting retirement goals you should consider

Accepted Answer

A)  what you want to do in retirement. 
B)  your expected standard of living. 
C)  your proposed level of income. 
D)  special retirement activities and projects. 
E)  all of these. 
A)  what you want to do in retirement. 
B)  your expected standard of living. 
C)  your proposed level of income. 
D)  special retirement activities and projects. 
E)  all of these.

Question 5

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-The income base on which social security tax is computed [increases each year | remains the same for long periods of time].

Accepted Answer

The answer of Choose the word or phrase in [...

Question 6

More than 50 percent of all wage earners and salaried workers today are covered by some type of employer-sponsored retirement or profit-sharing plan.

Accepted Answer

A) True 
 B)False

Question 7

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-The period during which annuity payments are made to the individual is called the [distribution | survivorship] period.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 8

A Roth IRA

Accepted Answer

A)  is funded with after tax dollars. 
B)  allows interest or dividends to accrue tax free. 
C)  permits you to withdraw your contribution at any time. 
D)  provides for tax-free earnings if you hold the account 5 years and are 59 ¹/₂ at withdrawal. 
E)  all of the above are true. 
A)  is funded with after tax dollars. 
B)  allows interest or dividends to accrue tax free. 
C)  permits you to withdraw your contribution at any time. 
D)  provides for tax-free earnings if you hold the account 5 years and are 59 ¹/₂ at withdrawal. 
E)  all of the above are true.

Question 9

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-A straight life annuity payment option will result in the [highest | lowest] possible monthly payments to the annuitant.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 10

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-Inflation will have [little | great] impact on your retirement plans.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 11

Your social security withholdings are placed in an account with your name on it.

Accepted Answer

A) True 
 B)False

Question 12

Eric works for a company with a defined contribution benefit pension plan.He will retire in ten years (at age 65)and expects his salary to be $100,000 in his last year of work.Social security should pay him $1,325 per month at that time.If he needs 80 percent of his income to maintain his standard of living upon retirement,how much annual income will he need from his employer's plan and from his own planning when he retires? (Show all work.)

Accepted Answer

Social security = $1,325 * 12

Question 13

Normal retirement age is typically defined as ____ years of age.

Accepted Answer

A)  50 
B)  55 
C)  60 
D)  65 
E)  70 
A)  50 
B)  55 
C)  60 
D)  65 
E)  70

Question 14

Attractive features of a 401(k)plan can include

Accepted Answer

A)  guaranteed investment return and tax deferral. 
B)  tax deferral and liquidity. 
C)  liquidity and matching contributions. 
D)  matching contributions and tax deferral. 
E)  tax deferral and liquidity 
A)  guaranteed investment return and tax deferral. 
B)  tax deferral and liquidity. 
C)  liquidity and matching contributions. 
D)  matching contributions and tax deferral. 
E)  tax deferral and liquidity

Question 15

Like Keogh Plans,SEP plans are only for self-employed persons with no employees.

Accepted Answer

A) True 
 B)False

Question 16

Fully insured status for Social Security requires ____ quarters of coverage.

Accepted Answer

A)  6 
B)  10 
C)  25 
D)  40 
E)  50 
A)  6 
B)  10 
C)  25 
D)  40 
E)  50

Question 17

Employers who want flexibility in how much they contribute to their employees' retirement plans would want to consider adopting a ____ plan.

Accepted Answer

A)  Qualified defined contribution 
B)  Cash balance 
C)  Defined benefit 
D)  Profit sharing 
E)  403(b) 
A)  Qualified defined contribution 
B)  Cash balance 
C)  Defined benefit 
D)  Profit sharing 
E)  403(b)

Question 18

Traditional defined benefit plans are better suited than cash balance plans for a mobile workforce.

Accepted Answer

A) True 
 B)False

Question 19

The proceeds of a variable annuity are dependent on the

Accepted Answer

A)  cost of living. 
B)  Consumer Price Index. 
C)  investment return. 
D)  tax rate. 
E)  actual investment. 
A)  cost of living. 
B)  Consumer Price Index. 
C)  investment return. 
D)  tax rate. 
E)  actual investment.

Question 20

The fees on annuities tend to be high compared to mutual funds.

Accepted Answer

A) True 
 B)False

An investor's principal source of retirement income is social security retirement funds.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -[Earned income | 401k's] has accounted for a growing amount of total retirement income.

Self directed retirement accounts such as Keogh and SEP accounts can be set up at

When setting retirement goals you should consider

More than 50 percent of all wage earners and salaried workers today are covered by some type of employer-sponsored retirement or profit-sharing plan.

A Roth IRA

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -Inflation will have [little | great] impact on your retirement plans.

Your social security withholdings are placed in an account with your name on it.

Normal retirement age is typically defined as ____ years of age.

Attractive features of a 401(k)plan can include

Like Keogh Plans,SEP plans are only for self-employed persons with no employees.

Fully insured status for Social Security requires ____ quarters of coverage.

Employers who want flexibility in how much they contribute to their employees' retirement plans would want to consider adopting a ____ plan.

Traditional defined benefit plans are better suited than cash balance plans for a mobile workforce.

The proceeds of a variable annuity are dependent on the

The fees on annuities tend to be high compared to mutual funds.

Understanding the Financial Planning Process

Using Financial Statements and Budgets

Preparing Your Taxes

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Credit

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Investing in Mutual Funds

Preserving Your Estate

Filters

Exam 14: Planning for Retirement

An investor's principal source of retirement income is social security retirement funds.

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -[Earned income | 401k's] has accounted for a growing amount of total retirement income.

Self directed retirement accounts such as Keogh and SEP accounts can be set up at

When setting retirement goals you should consider

More than 50 percent of all wage earners and salaried workers today are covered by some type of employer-sponsored retirement or profit-sharing plan.

A Roth IRA

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement. -Inflation will have [little | great] impact on your retirement plans.

Your social security withholdings are placed in an account with your name on it.

Normal retirement age is typically defined as ____ years of age.

Attractive features of a 401(k)plan can include

Like Keogh Plans,SEP plans are only for self-employed persons with no employees.

Fully insured status for Social Security requires ____ quarters of coverage.

Employers who want flexibility in how much they contribute to their employees' retirement plans would want to consider adopting a ____ plan.

Traditional defined benefit plans are better suited than cash balance plans for a mobile workforce.

The proceeds of a variable annuity are dependent on the

The fees on annuities tend to be high compared to mutual funds.

Understanding the Financial Planning Process

Using Financial Statements and Budgets

Preparing Your Taxes

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Credit

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Investing in Mutual Funds

Preserving Your Estate

Filters