Exam 14: Planning for Retirement

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. -Vested rights are [forfeitable | non-forfeitable] rights to receive some pension benefits.

Investment returns on annuities have outperformed mutual fund returns over the past five year.

Early withdrawal of funds from an annuity may result in IRS penalties and

The purpose of the social security retirement program is to

Annuity premiums are paid to the company during the distribution period.

It is legal for employers to reduce an employee's pension as a result of receiving Social Security benefits.

Annual increases in the social security benefit check are related to the

At the same time as employers are cutting back on traditional pension plans,more are offering defined benefit plans.

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. -Under a defined contribution pension plan,an employee [is | is not] able to estimate what his pension payment would be upon retirement.

As social security covers more employees,employer-provided pensions and individual retirement plans are covering fewer.

The first step in retirement planning is to identify retirement goals.

Employer matching contributions are common with ____ plans.

Household expenses usually increase after retirement.

Workers who elect to retire early-at age 62-will receive reduced Social Security benefits,currently ________ of the full amount

Major sources of retirement income include

Annuity premiums are paid to the insurance company during the accumulation period.

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. -[Social Security | 401k] is the single largest source of income for the average U.S.retiree.

Starting later in life and being too conservative when investing are both common retirement planning mistakes.

Employees who have 401(k)plans also have to decide how to invest the funds in their plan.

If you make a withdrawal from an IRA account before age 57 1/2,you generally owe a 20% penalty on that amount