Question 1

Which of the following statements is not true of annuities?

Accepted Answer

A)  They can provide annual payments for life. 
B)  They provide no tax advantages. 
C)  They generally have high fees. 
D)  You can withdraw your investment as a lump sum. 
A)  They can provide annual payments for life. 
B)  They provide no tax advantages. 
C)  They generally have high fees. 
D)  You can withdraw your investment as a lump sum.

Question 2

In retirement planning, which of the following is false?

Accepted Answer

A)  Social Security benefits are enough for retirement for most people. 
B)  IRAs can be a good way to provide for retirement. 
C)  You can continue to work and receive Social Security benefits at the same time. 
D)  There is some concern about whether full Social Security benefits will be available in the future. 
A)  Social Security benefits are enough for retirement for most people. 
B)  IRAs can be a good way to provide for retirement. 
C)  You can continue to work and receive Social Security benefits at the same time. 
D)  There is some concern about whether full Social Security benefits will be available in the future.

Question 3

All of the following is good advice on retirement planning and savings, except

Accepted Answer

A)  start early. 
B)  take advantage of employer plans. 
C)  take advantage of tax savings. 
D)  if you are eligible for Social Security, you will not need to worry about additional savings. 
A)  start early. 
B)  take advantage of employer plans. 
C)  take advantage of tax savings. 
D)  if you are eligible for Social Security, you will not need to worry about additional savings.

Question 4

Social Security benefits vary among states, as the system is administered by the individual states.

Accepted Answer

A) True 
 B)False

Question 5

If a person who qualified for Social Security benefits dies, all of the following are benefits provided to the survivors, except

Accepted Answer

A)  a one-time payment to the spouse. 
B)  monthly income payments to the spouse with eligible children or if the spouse is at least age 60. 
C)  monthly income payments to children. 
D)  tuition reimbursement for a child attending college. 
A)  a one-time payment to the spouse. 
B)  monthly income payments to the spouse with eligible children or if the spouse is at least age 60. 
C)  monthly income payments to children. 
D)  tuition reimbursement for a child attending college.

Question 6

Use the following two columns of items to answer the matching questions below:
-annuity
A)a financial contract that provides annual payments over a specified period
B)a fee imposed on money withdrawn from an annuity

Accepted Answer

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

Question 7

Which of the following is not a defined-contribution retirement plan offered by employers?

Accepted Answer

A)  401(k) plan, 403(b) plan 
B)  SEP 
C)  403(b) plan 
D)  Keogh plan 
A)  401(k) plan, 403(b) plan 
B)  SEP 
C)  403(b) plan 
D)  Keogh plan

Question 8

Full Social Security retirement benefits begin at age 65 to 67 depending on what year you were born.

Accepted Answer

A) True 
 B)False

Question 9

The fees charged by financial institutions for annuities may include all of the following, except

Accepted Answer

A)  management fees. 
B)  surrender charges. 
C)  insurance fees or commissions. 
D)  no-load annuity fees. 
A)  management fees. 
B)  surrender charges. 
C)  insurance fees or commissions. 
D)  no-load annuity fees.

Question 10

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

Accepted Answer

A)  There is no penalty for early withdrawal of these funds. 
B)  There is no limit on the dollar amount you can contribute. 
C)  Your contributions are automatically vested and are yours, regardless of when you leave the firm. 
D)  401(k) contributions are made after taxes are paid on your salary. 
A)  There is no penalty for early withdrawal of these funds. 
B)  There is no limit on the dollar amount you can contribute. 
C)  Your contributions are automatically vested and are yours, regardless of when you leave the firm. 
D)  401(k) contributions are made after taxes are paid on your salary.

Question 11

The main difference between a defined-benefit plan and defined-contribution plan is

Accepted Answer

A)  a defined-contribution plan pays more at retirement. 
B)  defined-benefit plan payments are not taxable. 
C)  defined-contribution plan payments are not taxable. 
D)  the company is the only contributor to a defined-benefit plan while you and the company may both contribute to a defined-contribution plan. 
A)  a defined-contribution plan pays more at retirement. 
B)  defined-benefit plan payments are not taxable. 
C)  defined-contribution plan payments are not taxable. 
D)  the company is the only contributor to a defined-benefit plan while you and the company may both contribute to a defined-contribution plan.

Question 12

The quality and timing of your retirement depend mainly on the quality of your employer's retirement plan.

Accepted Answer

A) True 
 B)False

Question 13

To be eligible for Social Security full retirement benefits, a person must be retired and be at least 65 years old.

Accepted Answer

A) True 
 B)False

Question 14

Your Social Security retirement benefits are determined primarily by the amount

Accepted Answer

A)  of current contributions by other employees. 
B)  of savings you have. 
C)  you contributed to Social Security over the years. 
D)  of the prime interest rate. 
A)  of current contributions by other employees. 
B)  of savings you have. 
C)  you contributed to Social Security over the years. 
D)  of the prime interest rate.

Question 15

Use the following two columns of items to answer the matching questions below:
-SEP
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...

Which of the following statements is not true of annuities?

In retirement planning, which of the following is false?

All of the following is good advice on retirement planning and savings, except

Social Security benefits vary among states, as the system is administered by the individual states.

If a person who qualified for Social Security benefits dies, all of the following are benefits provided to the survivors, except

Use the following two columns of items to answer the matching questions below: -annuity A)a financial contract that provides annual payments over a specified period B)a fee imposed on money withdrawn from an annuity

Which of the following is not a defined-contribution retirement plan offered by employers?

Full Social Security retirement benefits begin at age 65 to 67 depending on what year you were born.

The fees charged by financial institutions for annuities may include all of the following, except

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

The main difference between a defined-benefit plan and defined-contribution plan is

The quality and timing of your retirement depend mainly on the quality of your employer's retirement plan.

To be eligible for Social Security full retirement benefits, a person must be retired and be at least 65 years old.

Your Social Security retirement benefits are determined primarily by the amount

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

Which of the following statements is not true of annuities?

In retirement planning, which of the following is false?

All of the following is good advice on retirement planning and savings, except

Social Security benefits vary among states, as the system is administered by the individual states.

If a person who qualified for Social Security benefits dies, all of the following are benefits provided to the survivors, except

Use the following two columns of items to answer the matching questions below: -annuity A)a financial contract that provides annual payments over a specified period B)a fee imposed on money withdrawn from an annuity

Which of the following is not a defined-contribution retirement plan offered by employers?

Full Social Security retirement benefits begin at age 65 to 67 depending on what year you were born.

The fees charged by financial institutions for annuities may include all of the following, except

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

The main difference between a defined-benefit plan and defined-contribution plan is

The quality and timing of your retirement depend mainly on the quality of your employer's retirement plan.

To be eligible for Social Security full retirement benefits, a person must be retired and be at least 65 years old.

Your Social Security retirement benefits are determined primarily by the amount

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