Question 1

Social security benefits for retirees less than 65 years of age may be reduced if

Accepted Answer

A)  wages and salaries exceed certain limits. 
B)  interest income exceeds limits. 
C)  dividend and rental income exceed limits. 
D)  assets exceed $60,000. 
E)  a spouse's income exceeds certain limits. 
A)  wages and salaries exceed certain limits. 
B)  interest income exceeds limits. 
C)  dividend and rental income exceed limits. 
D)  assets exceed $60,000. 
E)  a spouse's income exceeds certain limits.

Question 2

Funds to finance social security come from

Accepted Answer

A)  voluntary contributions from employee, employer, and self-employed. 
B)  compulsory contributions from employee, employer, and self-employed. 
C)  state and federal income tax. 
D)  compulsory contributions from government, employee, and employer. 
E)  Congressional appropriations. 
A)  voluntary contributions from employee, employer, and self-employed. 
B)  compulsory contributions from employee, employer, and self-employed. 
C)  state and federal income tax. 
D)  compulsory contributions from government, employee, and employer. 
E)  Congressional appropriations.

Question 3

A major advantage of an annuity is that you cannot outlive your financial resources.

Accepted Answer

A) True 
 B)False

Question 4

If you are gradually vested in a retirement plan over a 4-year period,the plan is a

Accepted Answer

A)  cliff plan. 
B)  contributory plan. 
C)  self-directed plan. 
D)  graded plan. 
E)  maximum vesting plan. 
A)  cliff plan. 
B)  contributory plan. 
C)  self-directed plan. 
D)  graded plan. 
E)  maximum vesting plan.

Question 5

Social Security is sufficient to enable a worker and spouse to maintain their pretirement standard of living.

Accepted Answer

A) True 
 B)False

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 initial estimates of retirement expenses and income should be done in [today's | future] dollars.

Accepted Answer

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

Question 7

You would most likely purchase an annuity from an insurance company.

Accepted Answer

A) True 
 B)False

Question 8

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 Pension Benefit Guarantee Corporation (PBGC)protects employees pensions from [inflation | bankruptcy].

Accepted Answer

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

Question 9

With a graduated vesting schedule over five years,Marianne is likely to keep ____ of her employer's contribution if she leaves her company after four years.

Accepted Answer

A)  10% 
B)  20% 
C)  40% 
D)  60% 
E)  80% 
A)  10% 
B)  20% 
C)  40% 
D)  60% 
E)  80%

Question 10

Persons 50 and over are able to make larger contributions to IRAs than younger persons.

Accepted Answer

A) True 
 B)False

Question 11

Fully insured status requires 40 ____ of employment covered by social security.

Accepted Answer

A)  weeks 
B)  months 
C)  quarters 
D)  periods 
E)  years 
A)  weeks 
B)  months 
C)  quarters 
D)  periods 
E)  years

Question 12

IRA withdrawals can be made without tax penalty any time after you reach the age of 59 1/2.

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.
-You can expect to spend [more | fewer] years in retirement than you spent in your parent's home.

Accepted Answer

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

Question 14

Jason just quit his current job.He has $13,000 vested in that 401(k)plan.Which of the following is true?

Accepted Answer

A)  If Jason takes the money and spends it, he will have to pay taxes and penalties on all $13,000. 
B)  If Jason takes the money and reinvests it in an IRA, the employer will write him a check for $13,000. 
C)  If Jason arranges a transfer of funds from his employer directly to his IRA trustee, his employer will withhold 20%. 
D)  a and b 
E)  a, b, and c 
A)  If Jason takes the money and spends it, he will have to pay taxes and penalties on all $13,000. 
B)  If Jason takes the money and reinvests it in an IRA, the employer will write him a check for $13,000. 
C)  If Jason arranges a transfer of funds from his employer directly to his IRA trustee, his employer will withhold 20%. 
D)  a and b 
E)  a, b, and c

Question 15

Short-term retirement planning usually involves

Accepted Answer

A)  3 to 5 year time horizons. 
B)  waiting until age 50 to start planning. 
C)  the need to save large amounts annually. 
D)  the use of more risky investments. 
E)  reducing inflation projections. 
A)  3 to 5 year time horizons. 
B)  waiting until age 50 to start planning. 
C)  the need to save large amounts annually. 
D)  the use of more risky investments. 
E)  reducing inflation projections.

Question 16

Whether or not social security benefits will be subject to income taxes depends on the age of the recipient.

Accepted Answer

A) True 
 B)False

Question 17

The employee contributions limits for 401(k)plans are the same as those for 403(b)and 457 plans.

Accepted Answer

A) True 
 B)False

Question 18

Single premium annuities result in single payment of proceeds.

Accepted Answer

A) True 
 B)False

Question 19

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 Social Security administration provides estimates of retirement benefits one could expect to receive in [current | inflated] dollars.

Accepted Answer

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

Question 20

You would most likely purchase an annuity from a bank.

Accepted Answer

A) True 
 B)False

Social security benefits for retirees less than 65 years of age may be reduced if

Funds to finance social security come from

A major advantage of an annuity is that you cannot outlive your financial resources.

If you are gradually vested in a retirement plan over a 4-year period,the plan is a

Social Security is sufficient to enable a worker and spouse to maintain their pretirement standard of living.

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 initial estimates of retirement expenses and income should be done in [today's | future] dollars.

You would most likely purchase an annuity from an insurance company.

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 Pension Benefit Guarantee Corporation (PBGC)protects employees pensions from [inflation | bankruptcy].

With a graduated vesting schedule over five years,Marianne is likely to keep ____ of her employer's contribution if she leaves her company after four years.

Persons 50 and over are able to make larger contributions to IRAs than younger persons.

Fully insured status requires 40 ____ of employment covered by social security.

IRA withdrawals can be made without tax penalty any time after you reach the age of 59 1/2.

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. -You can expect to spend [more | fewer] years in retirement than you spent in your parent's home.

Jason just quit his current job.He has $13,000 vested in that 401(k)plan.Which of the following is true?

Short-term retirement planning usually involves

Whether or not social security benefits will be subject to income taxes depends on the age of the recipient.

The employee contributions limits for 401(k)plans are the same as those for 403(b)and 457 plans.

Single premium annuities result in single payment of proceeds.

You would most likely purchase an annuity from a bank.

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

Social security benefits for retirees less than 65 years of age may be reduced if

Funds to finance social security come from

A major advantage of an annuity is that you cannot outlive your financial resources.

If you are gradually vested in a retirement plan over a 4-year period,the plan is a

Social Security is sufficient to enable a worker and spouse to maintain their pretirement standard of living.

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 initial estimates of retirement expenses and income should be done in [today's | future] dollars.

You would most likely purchase an annuity from an insurance company.

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 Pension Benefit Guarantee Corporation (PBGC)protects employees pensions from [inflation | bankruptcy].

With a graduated vesting schedule over five years,Marianne is likely to keep ____ of her employer's contribution if she leaves her company after four years.

Persons 50 and over are able to make larger contributions to IRAs than younger persons.

Fully insured status requires 40 ____ of employment covered by social security.

IRA withdrawals can be made without tax penalty any time after you reach the age of 59 1/2.

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. -You can expect to spend [more | fewer] years in retirement than you spent in your parent's home.

Jason just quit his current job.He has $13,000 vested in that 401(k)plan.Which of the following is true?

Short-term retirement planning usually involves

Whether or not social security benefits will be subject to income taxes depends on the age of the recipient.

The employee contributions limits for 401(k)plans are the same as those for 403(b)and 457 plans.

Single premium annuities result in single payment of proceeds.

You would most likely purchase an annuity from a bank.

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