Question 1

A(n) ________ annuity provides a specific return on your investment so you know how much money you will receive at a future point.

Accepted Answer

A)  guaranteed 
B)  fixed 
C)  variable 
D)  insured 
A)  guaranteed 
B)  fixed 
C)  variable 
D)  insured

Question 2

You get a job with the Allred Corporation. Its retirement plan will pay you $250 a month for each year you work for the company; payments begin on your 65th birthday. You must work for the company for 10 years in order to qualify for the pension. This plan is a

Accepted Answer

A)  defined-benefit plan. 
B)  defined-contribution plan. 
C)  traditional IRA. 
D)  Keogh plan. 
A)  defined-benefit plan. 
B)  defined-contribution plan. 
C)  traditional IRA. 
D)  Keogh plan.

Question 3

Bob and Bonnie, husband and wife ages 56 and 58, have combined income of $80,000. What is the maximum combined IRA contribution that they can make in 2018?

Accepted Answer

A)  $10,000 
B)  $11,000 
C)  $13,000 
D)  $40,000 
A)  $10,000 
B)  $11,000 
C)  $13,000 
D)  $40,000

Question 4

Name two types of retirement plans available to the self-employed.

Accepted Answer

Simplified Employee

Question 5

The Keogh plan is another retirement savings option, which can supplement individual retirement accounts (IRAs) for employed persons.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following plans is available to both firms with 10 or fewer employees and self-employed individuals?

Accepted Answer

A)  SEP plan 
B)  ESOP 
C)  Keogh plan 
D)  403(b) plan 
A)  SEP plan 
B)  ESOP 
C)  Keogh plan 
D)  403(b) plan

Question 7

Vesting means that employees have a claim to a portion of the retirement money that has been reserved for them upon retirement.

Accepted Answer

A) True 
 B)False

Question 8

When you leave an employer, your options with your 401(k) are all of the following, except

Accepted Answer

A)  leave it with your former employer. 
B)  transfer it to your new employer. 
C)  transfer it to a rollover IRA. 
D)  withdraw it with no tax penalty if done in 90 days. 
A)  leave it with your former employer. 
B)  transfer it to your new employer. 
C)  transfer it to a rollover IRA. 
D)  withdraw it with no tax penalty if done in 90 days.

Question 9

What three factors do you need to calculate how much money you will accumulate by retirement?

Accepted Answer

Time, inte

Question 10

Which of the following is false about a 401(k) plan?

Accepted Answer

A)  Withdrawals before age 59 1/2 result in a 10% tax penalty. 
B)  Less than 50% of all employers offering these plans match a portion of employee's contributions. 
C)  Your contributions are limited to a set dollar amount each year. 
D)  The money you contribute is deducted from your pay before income taxes are assessed. 
A)  Withdrawals before age 59 1/2 result in a 10% tax penalty. 
B)  Less than 50% of all employers offering these plans match a portion of employee's contributions. 
C)  Your contributions are limited to a set dollar amount each year. 
D)  The money you contribute is deducted from your pay before income taxes are assessed.

Question 11

When you contribute to an employer-sponsored retirement account, it is usually with ________ dollars.

Accepted Answer

A)  after-tax 
B)  pre-tax 
C)  optional 
D)  discretionary 
A)  after-tax 
B)  pre-tax 
C)  optional 
D)  discretionary

Question 12

If you are far away from retirement, you should consider investing in ________ for your retirement account.

Accepted Answer

A)  Ginnie Mae or Treasury bond funds 
B)  certificates of deposit (CDs) 
C)  mutual funds with growth stocks 
D)  corporate bonds 
A)  Ginnie Mae or Treasury bond funds 
B)  certificates of deposit (CDs) 
C)  mutual funds with growth stocks 
D)  corporate bonds

Question 13

Key retirement planning decisions include all of the following, except

Accepted Answer

A)  how much to contribute. 
B)  whether or not you should contribute. 
C)  when to contribute. 
D)  how to invest your contributions. 
A)  how much to contribute. 
B)  whether or not you should contribute. 
C)  when to contribute. 
D)  how to invest your contributions.

Question 14

If you have a claim to a portion of the money in an employer-sponsored retirement account, you are considered to be ________ the plan.

Accepted Answer

A)  committed to 
B)  permanent in 
C)  vested in 
D)  endowed in 
A)  committed to 
B)  permanent in 
C)  vested in 
D)  endowed in

Question 15

If you are about to invest in a stock that has excellent growth potential over the next few years and the investment is to be part of your retirement, the best place to do this would be in a

Accepted Answer

A)  bank trust account. 
B)  Roth IRA. 
C)  rollover IRA. 
D)  regular brokerage account. 
A)  bank trust account. 
B)  Roth IRA. 
C)  rollover IRA. 
D)  regular brokerage account.

Question 16

Generally, there are tax penalties for withdrawals from a traditional IRA before the age of

Accepted Answer

A)  59 1/2. 
B)  60. 
C)  67 full retirement age. 
D)  All of the above. 
A)  59 1/2. 
B)  60. 
C)  67 full retirement age. 
D)  All of the above.

Question 17

Individuals normally incur a tax penalty if funds are drawn from a traditional IRA before the age of 59 1/2.

Accepted Answer

A) True 
 B)False

Question 18

Most defined-contribution plans allow some investment flexibility and allow you to choose all of the following, except

Accepted Answer

A)  money market funds. 
B)  stock mutual funds. 
C)  bond mutual funds. 
D)  put and call options. 
A)  money market funds. 
B)  stock mutual funds. 
C)  bond mutual funds. 
D)  put and call options.

Question 19

Use the following two columns of items to answer the matching questions below:
-profit sharing
A)a defined contribution plan for small firms (1-10 employees)
B)a defined contribution plan in which the employer contributes to employee retirement accounts based on a specified profit formula
C)a defined contribution plan that allows employees to contribute up to $18,500 per year in 2018 on a pre-tax basis
D)a retirement plan in which the employer contributes its own stock to the employee's retirement account

Accepted Answer

The answer of Use the following two columns of items...

Question 20

If you have worked for a company long enough to claim a portion of your employer-sponsored retirement plan, you are ________ in the plan.

Accepted Answer

The answer of If you have worked for a company...

A(n) ________ annuity provides a specific return on your investment so you know how much money you will receive at a future point.

You get a job with the Allred Corporation. Its retirement plan will pay you $250 a month for each year you work for the company; payments begin on your 65th birthday. You must work for the company for 10 years in order to qualify for the pension. This plan is a

Bob and Bonnie, husband and wife ages 56 and 58, have combined income of $80,000. What is the maximum combined IRA contribution that they can make in 2018?

Name two types of retirement plans available to the self-employed.

The Keogh plan is another retirement savings option, which can supplement individual retirement accounts (IRAs) for employed persons.

Which of the following plans is available to both firms with 10 or fewer employees and self-employed individuals?

Vesting means that employees have a claim to a portion of the retirement money that has been reserved for them upon retirement.

When you leave an employer, your options with your 401(k) are all of the following, except

What three factors do you need to calculate how much money you will accumulate by retirement?

Which of the following is false about a 401(k) plan?

When you contribute to an employer-sponsored retirement account, it is usually with ________ dollars.

If you are far away from retirement, you should consider investing in ________ for your retirement account.

Key retirement planning decisions include all of the following, except

If you have a claim to a portion of the money in an employer-sponsored retirement account, you are considered to be ________ the plan.

If you are about to invest in a stock that has excellent growth potential over the next few years and the investment is to be part of your retirement, the best place to do this would be in a

Generally, there are tax penalties for withdrawals from a traditional IRA before the age of

Individuals normally incur a tax penalty if funds are drawn from a traditional IRA before the age of 59 1/2.

Most defined-contribution plans allow some investment flexibility and allow you to choose all of the following, except

If you have worked for a company long enough to claim a portion of your employer-sponsored retirement plan, you are ________ in the plan.

Overview of a Financial Plan

Planning With Personal Financial Statements

Applying Time Value Concepts

Using Tax Concepts for Planning

Banking and Interest Rates

Managing Your Money

Assessing and Securing Your Credit

Managing Your Credit

Personal Loans

Purchasing and Financing a Home

Auto and Homeowners Insurance

Health and Disability Insurance

Life Insurance

Investing Fundamentals

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Asset Allocation

Estate Planning

Integrating the Components of a Financial Plan

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Exam 19: Retirement Planning

A(n) ________ annuity provides a specific return on your investment so you know how much money you will receive at a future point.

You get a job with the Allred Corporation. Its retirement plan will pay you $250 a month for each year you work for the company; payments begin on your 65th birthday. You must work for the company for 10 years in order to qualify for the pension. This plan is a

Bob and Bonnie, husband and wife ages 56 and 58, have combined income of $80,000. What is the maximum combined IRA contribution that they can make in 2018?

Name two types of retirement plans available to the self-employed.

The Keogh plan is another retirement savings option, which can supplement individual retirement accounts (IRAs) for employed persons.

Which of the following plans is available to both firms with 10 or fewer employees and self-employed individuals?

Vesting means that employees have a claim to a portion of the retirement money that has been reserved for them upon retirement.

When you leave an employer, your options with your 401(k) are all of the following, except

What three factors do you need to calculate how much money you will accumulate by retirement?

Which of the following is false about a 401(k) plan?

When you contribute to an employer-sponsored retirement account, it is usually with ________ dollars.

If you are far away from retirement, you should consider investing in ________ for your retirement account.

Key retirement planning decisions include all of the following, except

If you have a claim to a portion of the money in an employer-sponsored retirement account, you are considered to be ________ the plan.

If you are about to invest in a stock that has excellent growth potential over the next few years and the investment is to be part of your retirement, the best place to do this would be in a

Generally, there are tax penalties for withdrawals from a traditional IRA before the age of

Individuals normally incur a tax penalty if funds are drawn from a traditional IRA before the age of 59 1/2.

Most defined-contribution plans allow some investment flexibility and allow you to choose all of the following, except

If you have worked for a company long enough to claim a portion of your employer-sponsored retirement plan, you are ________ in the plan.

Overview of a Financial Plan

Planning With Personal Financial Statements

Applying Time Value Concepts

Using Tax Concepts for Planning

Banking and Interest Rates

Managing Your Money

Assessing and Securing Your Credit

Managing Your Credit

Personal Loans

Purchasing and Financing a Home

Auto and Homeowners Insurance

Health and Disability Insurance

Life Insurance

Investing Fundamentals

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Asset Allocation

Estate Planning

Integrating the Components of a Financial Plan

Filters