Question 1

The amount accumulated in a defined contribution plan will be determined,at least in part,by the investment performance of the retirement funds.

Accepted Answer

A) True 
 B)False

Question 2

Government research indicates that about ___ percent of households approaching retirement age have 401(k)accounts.

Accepted Answer

A)  20 
B)  40 
C)  60 
D)  80 
E)  90 
A)  20 
B)  40 
C)  60 
D)  80 
E)  90

Question 3

A person who is self-employed on a part-time basis can qualify for a Keogh account.

Accepted Answer

A) True 
 B)False

Question 4

The cost of an annuity varies with the

Accepted Answer

A)  age of the annuitant at issue. 
B)  age of the annuitant when payment begins. 
C)  method of proceeds distribution. 
D)  sex of the annuitant. 
E)  all of the above. 
A)  age of the annuitant at issue. 
B)  age of the annuitant when payment begins. 
C)  method of proceeds distribution. 
D)  sex of the annuitant. 
E)  all of the above.

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.
-Kurt receives social security benefits and also received $55,000 wages during the year.His social security benefits will be [totally | partially] taxable.

Accepted Answer

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

Question 6

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 costs of investing in a variable annuity is typically [higher | lower] than investing in mutual funds.

Accepted Answer

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

Question 7

Eligibility requirements for pension and retirement plans are typically determined by the employee's age and years of service.

Accepted Answer

A) True 
 B)False

Question 8

One often has to make investment decision if you have a ____ plan.

Accepted Answer

A)  Cash balance 
B)  Defined benefit 
C)  401(k) 
D)  a and b 
E)  a and c 
A)  Cash balance 
B)  Defined benefit 
C)  401(k) 
D)  a and b 
E)  a and c

Question 9

The current trend in retirement plans is towards contributory plans.

Accepted Answer

A) True 
 B)False

Question 10

The two ways to buy annuities are single premium and

Accepted Answer

A)  multi-premium. 
B)  future premium. 
C)  installment premium. 
D)  guaranteed premium. 
E)  lateral premium. 
A)  multi-premium. 
B)  future premium. 
C)  installment premium. 
D)  guaranteed premium. 
E)  lateral premium.

Question 11

An investment vehicle that systematically pays out benefits over an extended period of time is a(n)

Accepted Answer

A)  common stock. 
B)  bonds. 
C)  mutual funds. 
D)  annuity. 
E)  money market securities. 
A)  common stock. 
B)  bonds. 
C)  mutual funds. 
D)  annuity. 
E)  money market securities.

Question 12

It really makes little difference whether you start retirement savings at age 25 or at age 45.

Accepted Answer

A) True 
 B)False

Question 13

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.
-Beginning to put aside retirement funds at age 35 instead of 45 will make [very little | a great] difference in your total accumulated funds.

Accepted Answer

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

Question 14

Annuities are administered by

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 15

If an annuity plan is designed so that the monthly payment is adjusted by the actual investment experience of the insurer,it is

Accepted Answer

A)  a fixed dollar annuity. 
B)  an equity annuity. 
C)  a variable annuity. 
D)  an uncertain annuity. 
E)  a temporary annuity. 
A)  a fixed dollar annuity. 
B)  an equity annuity. 
C)  a variable annuity. 
D)  an uncertain annuity. 
E)  a temporary annuity.

Question 16

Self directed retirement accounts aimed at self-employed persons include

Accepted Answer

A)  Keogh plans. 
B)  SEPs. 
C)  401(k) plans. 
D)  a and b 
E)  a, b, and c 
A)  Keogh plans. 
B)  SEPs. 
C)  401(k) plans. 
D)  a and b 
E)  a, b, and c

Question 17

Early death results in the loss of annuity capital in a straight life annuity.

Accepted Answer

A) True 
 B)False

Question 18

Home Appliance Warehouse,Inc.would like to set up a retirement plan for its employees that encourage employees to save for their own retirement.The company is willing to match employee contributions.Which of the following plans would be appropriate in this situation?

Accepted Answer

A)  Cash balance plan 
B)  403(b) plan 
C)  457 plan 
D)  401(k) plan 
E)  b, c, and d 
A)  Cash balance plan 
B)  403(b) plan 
C)  457 plan 
D)  401(k) plan 
E)  b, c, and d

Question 19

The advantage of profit sharing plans that invest in their own company stock is that the minimum value of the stock is guaranteed.

Accepted Answer

A) True 
 B)False

Question 20

The period during which premiums are paid for the purchase of an annuity is called the

Accepted Answer

A)  installment period. 
B)  accumulation period. 
C)  survivor period. 
D)  distribution period. 
E)  contract period. 
A)  installment period. 
B)  accumulation period. 
C)  survivor period. 
D)  distribution period. 
E)  contract period.

The amount accumulated in a defined contribution plan will be determined,at least in part,by the investment performance of the retirement funds.

Government research indicates that about ___ percent of households approaching retirement age have 401(k)accounts.

A person who is self-employed on a part-time basis can qualify for a Keogh account.

The cost of an annuity varies with the

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 costs of investing in a variable annuity is typically [higher | lower] than investing in mutual funds.

Eligibility requirements for pension and retirement plans are typically determined by the employee's age and years of service.

One often has to make investment decision if you have a ____ plan.

The current trend in retirement plans is towards contributory plans.

The two ways to buy annuities are single premium and

An investment vehicle that systematically pays out benefits over an extended period of time is a(n)

It really makes little difference whether you start retirement savings at age 25 or at age 45.

Annuities are administered by

If an annuity plan is designed so that the monthly payment is adjusted by the actual investment experience of the insurer,it is

Self directed retirement accounts aimed at self-employed persons include

Early death results in the loss of annuity capital in a straight life annuity.

Home Appliance Warehouse,Inc.would like to set up a retirement plan for its employees that encourage employees to save for their own retirement.The company is willing to match employee contributions.Which of the following plans would be appropriate in this situation?

The advantage of profit sharing plans that invest in their own company stock is that the minimum value of the stock is guaranteed.

The period during which premiums are paid for the purchase of an annuity is called the

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

The amount accumulated in a defined contribution plan will be determined,at least in part,by the investment performance of the retirement funds.

Government research indicates that about ___ percent of households approaching retirement age have 401(k)accounts.

A person who is self-employed on a part-time basis can qualify for a Keogh account.

The cost of an annuity varies with the

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 costs of investing in a variable annuity is typically [higher | lower] than investing in mutual funds.

Eligibility requirements for pension and retirement plans are typically determined by the employee's age and years of service.

One often has to make investment decision if you have a ____ plan.

The current trend in retirement plans is towards contributory plans.

The two ways to buy annuities are single premium and

An investment vehicle that systematically pays out benefits over an extended period of time is a(n)

It really makes little difference whether you start retirement savings at age 25 or at age 45.

Annuities are administered by

If an annuity plan is designed so that the monthly payment is adjusted by the actual investment experience of the insurer,it is

Self directed retirement accounts aimed at self-employed persons include

Early death results in the loss of annuity capital in a straight life annuity.

Home Appliance Warehouse,Inc.would like to set up a retirement plan for its employees that encourage employees to save for their own retirement.The company is willing to match employee contributions.Which of the following plans would be appropriate in this situation?

The advantage of profit sharing plans that invest in their own company stock is that the minimum value of the stock is guaranteed.

The period during which premiums are paid for the purchase of an annuity is called the

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