Question 1

The Employee Retirement Income Security Act (ERISA)provides

Accepted Answer

A)  funding of retirement plans. 
B)  insurance for retirement plans when employees change employers. 
C)  for mandatory retirement plans. 
D)  minimum standards for retirement plans. 
E)  trust funds for retirement. 
A)  funding of retirement plans. 
B)  insurance for retirement plans when employees change employers. 
C)  for mandatory retirement plans. 
D)  minimum standards for retirement plans. 
E)  trust funds for retirement.

Question 2

Marcia works for Telephonic Industries and participates in its thrift and savings plan.For every $1.00 Marcia contributes to the plan,up to 4 percent of her salary,the company contributes $0.50.Which of the following accurately describe this plan?

Accepted Answer

A)  It's a defined benefit plan. 
B)  It's a non-contributory plan. 
C)  It's a cash balance plan. 
D)  It's a matching plan. 
E)  It's a profit sharing plan 
A)  It's a defined benefit plan. 
B)  It's a non-contributory plan. 
C)  It's a cash balance plan. 
D)  It's a matching plan. 
E)  It's a profit sharing plan

Question 3

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 median household approaching retirement has less than [25 | 50] percent of the money needed to maintain their standard of living in retirement.

Accepted Answer

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

Question 4

A graded vesting schedule would legally have to give you some vesting rights if you worked at a company for 2 or more years.

Accepted Answer

A) True 
 B)False

Question 5

The SEP is designed for self-employed individuals.

Accepted Answer

A) True 
 B)False

Question 6

One can contribute up to $10,000 annually to a 401(k)plan.

Accepted Answer

A) True 
 B)False

Question 7

The Personal Earnings and Benefit Estimate Statement from Social Security would contain information about

Accepted Answer

A)  year-by-year social security earnings credits. 
B)  benefits at age 62. 
C)  benefits at age 65 to 67. 
D)  benefits at age 70. 
E)  all of these. 
A)  year-by-year social security earnings credits. 
B)  benefits at age 62. 
C)  benefits at age 65 to 67. 
D)  benefits at age 70. 
E)  all of these.

Question 8

Keogh and SEP plans provide tax deferred methods for the self employed to save for their retirement.

Accepted Answer

A) True 
 B)False

Question 9

Age 65 is typically the "normal retirement" age on retirement plans.

Accepted Answer

A) True 
 B)False

Question 10

Major sources of retirement income include all of the following except

Accepted Answer

A)  life insurance. 
B)  annuities. 
C)  individual savings plans. 
D)  employer retirement and pension plans. 
E)  social security. 
A)  life insurance. 
B)  annuities. 
C)  individual savings plans. 
D)  employer retirement and pension plans. 
E)  social security.

Question 11

The money you put into a Roth IRA is deductible from your taxable income in the year contributed.

Accepted Answer

A) True 
 B)False

Question 12

Melissa's retirement plan is described in her employee handbook as follows: 
Noncontributory
Cliff vesting $ (100 \%) $ after 3 years of full-time employment
Monthly retirement benefit based on average salary over the last 3 years of employment and the total number of years worked for the company

Which of the following statements about this retirement plan is(are)true?

Accepted Answer

A)  Melissa will have to contribute to the plan. 
B)  If Melissa leaves this company before working full-time for 3 years, she will not receive any benefits. 
C)  Melissa will have to make investment decisions regarding her retirement plan. 
D)  This is a defined contribution plan. 
E)  All of the above. 
A)  Melissa will have to contribute to the plan. 
B)  If Melissa leaves this company before working full-time for 3 years, she will not receive any benefits. 
C)  Melissa will have to make investment decisions regarding her retirement plan. 
D)  This is a defined contribution plan. 
E)  All of the above.

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.
-If you need to withdraw your money from an annuity very soon after you begin making contributions,there most likely will be a [small | large] surrender fee.

Accepted Answer

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

Question 14

At the same time as employers are cutting back on traditional pension plans,more are offering 401(k)plans.

Accepted Answer

A) True 
 B)False

Question 15

The major mistake(s)people make in retirement planning is(are)

Accepted Answer

A)  starting too late. 
B)  saving too little. 
C)  investing too conservatively. 
D)  a and b 
E)  a, b, and c 
A)  starting too late. 
B)  saving too little. 
C)  investing too conservatively. 
D)  a and b 
E)  a, b, and c

Question 16

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 Roth IRA will be funded with [pre | post] tax dollars.

Accepted Answer

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

Question 17

The cash balance retirement plan is being used to replace traditional defined benefit plans.

Accepted Answer

A) True 
 B)False

Question 18

In a Roth 401(k),contributions are tax deductible and withdrawals are taxable.

Accepted Answer

A) True 
 B)False

Question 19

One can maximize the monthly Social Security benefit amount by delaying taking retirement benefits until age

Accepted Answer

A)  62 
B)  65 
C)  67 
D)  70 
E)  75 
A)  62 
B)  65 
C)  67 
D)  70 
E)  75

Question 20

The amount of money in your defined contribution retirement portfolio will depend on

Accepted Answer

A)  the age at which you begin contributing. 
B)  the amount of money you deposit each month. 
C)  the rate of return on your savings. 
D)  all of these. 
E)  none of these really make much difference. 
A)  the age at which you begin contributing. 
B)  the amount of money you deposit each month. 
C)  the rate of return on your savings. 
D)  all of these. 
E)  none of these really make much difference.

The Employee Retirement Income Security Act (ERISA)provides

Marcia works for Telephonic Industries and participates in its thrift and savings plan.For every $1.00 Marcia contributes to the plan,up to 4 percent of her salary,the company contributes $0.50.Which of the following accurately describe this plan?

A graded vesting schedule would legally have to give you some vesting rights if you worked at a company for 2 or more years.

The SEP is designed for self-employed individuals.

One can contribute up to $10,000 annually to a 401(k)plan.

The Personal Earnings and Benefit Estimate Statement from Social Security would contain information about

Keogh and SEP plans provide tax deferred methods for the self employed to save for their retirement.

Age 65 is typically the "normal retirement" age on retirement plans.

Major sources of retirement income include all of the following except

The money you put into a Roth IRA is deductible from your taxable income in the year contributed.

At the same time as employers are cutting back on traditional pension plans,more are offering 401(k)plans.

The major mistake(s)people make in retirement planning is(are)

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 Roth IRA will be funded with [pre | post] tax dollars.

The cash balance retirement plan is being used to replace traditional defined benefit plans.

In a Roth 401(k),contributions are tax deductible and withdrawals are taxable.

One can maximize the monthly Social Security benefit amount by delaying taking retirement benefits until age

The amount of money in your defined contribution retirement portfolio will depend on

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 Employee Retirement Income Security Act (ERISA)provides

Marcia works for Telephonic Industries and participates in its thrift and savings plan.For every $1.00 Marcia contributes to the plan,up to 4 percent of her salary,the company contributes $0.50.Which of the following accurately describe this plan?

A graded vesting schedule would legally have to give you some vesting rights if you worked at a company for 2 or more years.

The SEP is designed for self-employed individuals.

One can contribute up to $10,000 annually to a 401(k)plan.

The Personal Earnings and Benefit Estimate Statement from Social Security would contain information about

Keogh and SEP plans provide tax deferred methods for the self employed to save for their retirement.

Age 65 is typically the "normal retirement" age on retirement plans.

Major sources of retirement income include all of the following except

The money you put into a Roth IRA is deductible from your taxable income in the year contributed.

At the same time as employers are cutting back on traditional pension plans,more are offering 401(k)plans.

The major mistake(s)people make in retirement planning is(are)

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 Roth IRA will be funded with [pre | post] tax dollars.

The cash balance retirement plan is being used to replace traditional defined benefit plans.

In a Roth 401(k),contributions are tax deductible and withdrawals are taxable.

One can maximize the monthly Social Security benefit amount by delaying taking retirement benefits until age

The amount of money in your defined contribution retirement portfolio will depend on

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