Exam 14: Planning for Retirement

Depending on your age,Social security retirement benefits could be reduced because of employment income.

To be eligible for social security retirement benefits,30 quarters of covered employment are generally needed.

Reduced early retirement benefits can be received at age 62.

In long-term retirement planning you decide on the required level of retirement income and funds needed over a 3 to 5 year series of intervals.

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. -You are age 45 and healthy,and you are withdrawing money from your IRA.There [will | will not] be a tax penalty for doing this.

Payments from a defined benefits plan will be determined by the investment performance of the retirement funds.

Variable annuities are usually better choices than fixed annuities for risk tolerant investors during the withdrawal phase of the annuity.

Miles has no retirement plan at work.Therefore,$2,000 contributed to his regular IRA will be tax deductible.

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. -[Any gainfully employed person | Only certain employees] can put money into an IRA.

Which of the following types of retirement plans is becoming less common?

Upon retirement,married couples automatically receive 1.5 times the higher earning spouse's Social Security benefit.

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 defined [contribution | benefit] retirement plan would usually be better for an older worker who has been employed for a long time with the same employer.

Minimum distributions are not required from

It is extremely wise to contribute at least as much to a 401(k)plan as one's employer will match.

An IRA is a type of an investment.

If one is unsure about the facts needed to estimate retirement needs,it is better to do nothing for a few years.

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. -[SEP | Keogh] plans are easier to establish.

Supplemental retirement plans are usually voluntary.

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. -It usually makes less sense to convert a traditional IRA to a Roth IRA the [younger |older] you are.

When one estimates retirement needs,you start with a projection of expenses stated in current dollars.