Question 1

What investment goals should a person have when determining where to put their 401k monies in their account?

Accepted Answer

For the younger workers under the age of

Question 2

Under a single life annuity, you receive a set monthly payment for the rest of your life.

Accepted Answer

A) True 
 B)False

Question 3

A(n) ________ is a tax-deferred retirement plan that is essentially the same as a 401(k) plan, except that it is aimed at employees of schools and charitable organizations.

Accepted Answer

A)  404(a) 
B)  402(b) 
C)  403(b) 
D)  007(a) 
E)  none of the above 
A)  404(a) 
B)  402(b) 
C)  403(b) 
D)  007(a) 
E)  none of the above

Question 4

The Keogh plan is a retirement plan for individuals who work for large multinational corporations.

Accepted Answer

A) True 
 B)False

Question 5

Why would it be a good idea to hire a Certified Financial Planner before you retire?

Accepted Answer

Many people will retire with a substanti

Question 6

Why is it a wise idea to have 3 retirement plans in place?

Accepted Answer

The three-retirement-plan idea is worthy

Question 7

You should take advantage of any matching your company is willing to do for your 401(k).

Accepted Answer

A) True 
 B)False

Question 8

What is a disadvantage of the "Prepaid College Tuition Plan" version of the 529 plan?

Accepted Answer

A)  Distributions before age 59 1/2 incur a 10% tax penalty. 
B)  They generally guarantee that your child will be covered only if he or she attends a public in-state university or college. 
C)  They allow greater flexibility than the College Savings Plans. 
D)  All of the above. 
E)  None of the above. 
A)  Distributions before age 59 1/2 incur a 10% tax penalty. 
B)  They generally guarantee that your child will be covered only if he or she attends a public in-state university or college. 
C)  They allow greater flexibility than the College Savings Plans. 
D)  All of the above. 
E)  None of the above.

Question 9

What advantage does the Roth IRA have over the traditional IRA?

Accepted Answer

A)  Early withdrawals from a Roth are subject to penalities, so you won't be tempted to dip into your investment. 
B)  Unlike the traditional IRA, with a Roth you don't pay taxes while your money is in the IRA. 
C)  With a Roth you take care of taxes ahead of time and end up with more money to spend at retirement. 
D)  Contributions to a Roth IRA are tax deductible. 
A)  Early withdrawals from a Roth are subject to penalities, so you won't be tempted to dip into your investment. 
B)  Unlike the traditional IRA, with a Roth you don't pay taxes while your money is in the IRA. 
C)  With a Roth you take care of taxes ahead of time and end up with more money to spend at retirement. 
D)  Contributions to a Roth IRA are tax deductible.

Question 10

The difference between a Money Purchase Plan and a Profit Sharing plan is that ________.

Accepted Answer

A)  With the Profit Sharing Plan the employee is guaranteed to see profits in their retirement funds 
B)  With the Money Purchase Plan the contributions are required regardless of how the firm performs 
C)  Profit Sharing Plans constantly outperform Money Purchase Plans 
D)  All of the above are correct. 
E)  Both A and C are correct. 
A)  With the Profit Sharing Plan the employee is guaranteed to see profits in their retirement funds 
B)  With the Money Purchase Plan the contributions are required regardless of how the firm performs 
C)  Profit Sharing Plans constantly outperform Money Purchase Plans 
D)  All of the above are correct. 
E)  Both A and C are correct.

Question 11

A disadvantage of the annuity for life plan is that the payments stop when you die, so you can't pass the money on to your heirs.

Accepted Answer

A) True 
 B)False

Question 12

For most people, there is really no reason to save for retirement since Social Security will provide retirement benefits until you die.

Accepted Answer

A) True 
 B)False

Question 13

When is rolling your lump-sum retirement benefits into an IRA a good financial decision?

Accepted Answer

A)  If you have taken a new job. 
B)  If you have retired early. 
C)  If you don't need the funds immediately. 
D)  All of the above are correct 
E)  Only A and C are correct. 
A)  If you have taken a new job. 
B)  If you have retired early. 
C)  If you don't need the funds immediately. 
D)  All of the above are correct 
E)  Only A and C are correct.

Question 14

Robin was born after 1960, therefore, the retirement age for her to receive full Social Security benefits is 65.

Accepted Answer

A) True 
 B)False

Question 15

Under the annuity for life policy your payments will continue to your beneficiaries upon your passing up until a specified time.

Accepted Answer

A) True 
 B)False

Question 16

A 'self-directed' retirement plan is one in which a plan administrator determines how much your contributions will be and what investment options you will have available.

Accepted Answer

A) True 
 B)False

Question 17

You want to start an Coverdell Education Savings Account for your child. Suppose that you contribute $500 each year to this account for 18 years, starting when he or she is born. If you can earn 8% on the deposits, how much will be on deposit at the end of the 18th year?

Accepted Answer

A)  $4,306.38 
B)  $17,581.05 
C)  $18,725.12 
D)  $3,682.89 
E)  none of the above 
A)  $4,306.38 
B)  $17,581.05 
C)  $18,725.12 
D)  $3,682.89 
E)  none of the above

Question 18

For someone wanting to minimize the taxes they are paying now, a Roth IRA would be preferable to a traditional IRA.

Accepted Answer

A) True 
 B)False

Question 19

401(k) and 403(b) plans are the most common retirement plans these days. What are the big advantages to employees with these plans?

Accepted Answer

A)  You don't pay taxes on money contributed to 401(k) plans. 
B)  Earnings on your retirement account are tax deferred. 
C)  Many firms contribute an employer match, which represents a 100% risk-free return to the employee. 
D)  All of the above are correct 
E)  Only A and C are correct. 
A)  You don't pay taxes on money contributed to 401(k) plans. 
B)  Earnings on your retirement account are tax deferred. 
C)  Many firms contribute an employer match, which represents a 100% risk-free return to the employee. 
D)  All of the above are correct 
E)  Only A and C are correct.

Question 20

Frances McClurg favors the Roth IRA over the traditional IRA. What advantage does the Roth provide over the traditional IRA?

Accepted Answer

A)  She can avoid income taxes when she withdraws. 
B)  The earnings are tax deferred, unlike a traditional IRA. 
C)  Contributions are tax deductible. 
D)  It saves tax money for education. 
A)  She can avoid income taxes when she withdraws. 
B)  The earnings are tax deferred, unlike a traditional IRA. 
C)  Contributions are tax deductible. 
D)  It saves tax money for education.

What investment goals should a person have when determining where to put their 401k monies in their account?

Under a single life annuity, you receive a set monthly payment for the rest of your life.

A(n) ________ is a tax-deferred retirement plan that is essentially the same as a 401(k) plan, except that it is aimed at employees of schools and charitable organizations.

The Keogh plan is a retirement plan for individuals who work for large multinational corporations.

Why would it be a good idea to hire a Certified Financial Planner before you retire?

Why is it a wise idea to have 3 retirement plans in place?

You should take advantage of any matching your company is willing to do for your 401(k).

What is a disadvantage of the "Prepaid College Tuition Plan" version of the 529 plan?

What advantage does the Roth IRA have over the traditional IRA?

The difference between a Money Purchase Plan and a Profit Sharing plan is that ________.

A disadvantage of the annuity for life plan is that the payments stop when you die, so you can't pass the money on to your heirs.

For most people, there is really no reason to save for retirement since Social Security will provide retirement benefits until you die.

When is rolling your lump-sum retirement benefits into an IRA a good financial decision?

Robin was born after 1960, therefore, the retirement age for her to receive full Social Security benefits is 65.

Under the annuity for life policy your payments will continue to your beneficiaries upon your passing up until a specified time.

A 'self-directed' retirement plan is one in which a plan administrator determines how much your contributions will be and what investment options you will have available.

You want to start an Coverdell Education Savings Account for your child. Suppose that you contribute $500 each year to this account for 18 years, starting when he or she is born. If you can earn 8% on the deposits, how much will be on deposit at the end of the 18th year?

For someone wanting to minimize the taxes they are paying now, a Roth IRA would be preferable to a traditional IRA.

401(k) and 403(b) plans are the most common retirement plans these days. What are the big advantages to employees with these plans?

Frances McClurg favors the Roth IRA over the traditional IRA. What advantage does the Roth provide over the traditional IRA?

The Financial Planning Process

Measuring Your Financial Health and Making a Plan

Understanding and Appreciating the Time Value of Money

Tax Planning and Strategies

Cash or Liquid Asset Management

Using Credit Cards: The Role of Open Credit

Using Consumer Loans: The Role of Planned Borrowing

The Home and Automobile Decision

Life and Health Insurance

Property and Liability Insurance

Investment Basics

Securities Markets

Investing in Stocks

Investing in Bonds and Other Alternatives

Mutual Funds: An Easy Way to Diversify

Estate Planning: Saving Your Heirs Money and Headaches

Financial Life Events Fitting the Pieces Together

Filters

Exam 16: Retirement Planning

What investment goals should a person have when determining where to put their 401k monies in their account?

Under a single life annuity, you receive a set monthly payment for the rest of your life.

A(n) ________ is a tax-deferred retirement plan that is essentially the same as a 401(k) plan, except that it is aimed at employees of schools and charitable organizations.

The Keogh plan is a retirement plan for individuals who work for large multinational corporations.

Why would it be a good idea to hire a Certified Financial Planner before you retire?

Why is it a wise idea to have 3 retirement plans in place?

You should take advantage of any matching your company is willing to do for your 401(k).

What is a disadvantage of the "Prepaid College Tuition Plan" version of the 529 plan?

What advantage does the Roth IRA have over the traditional IRA?

The difference between a Money Purchase Plan and a Profit Sharing plan is that ________.

A disadvantage of the annuity for life plan is that the payments stop when you die, so you can't pass the money on to your heirs.

For most people, there is really no reason to save for retirement since Social Security will provide retirement benefits until you die.

When is rolling your lump-sum retirement benefits into an IRA a good financial decision?

Robin was born after 1960, therefore, the retirement age for her to receive full Social Security benefits is 65.

Under the annuity for life policy your payments will continue to your beneficiaries upon your passing up until a specified time.

A 'self-directed' retirement plan is one in which a plan administrator determines how much your contributions will be and what investment options you will have available.

You want to start an Coverdell Education Savings Account for your child. Suppose that you contribute $500 each year to this account for 18 years, starting when he or she is born. If you can earn 8% on the deposits, how much will be on deposit at the end of the 18th year?

For someone wanting to minimize the taxes they are paying now, a Roth IRA would be preferable to a traditional IRA.

401(k) and 403(b) plans are the most common retirement plans these days. What are the big advantages to employees with these plans?

Frances McClurg favors the Roth IRA over the traditional IRA. What advantage does the Roth provide over the traditional IRA?

The Financial Planning Process

Measuring Your Financial Health and Making a Plan

Understanding and Appreciating the Time Value of Money

Tax Planning and Strategies

Cash or Liquid Asset Management

Using Credit Cards: The Role of Open Credit

Using Consumer Loans: The Role of Planned Borrowing

The Home and Automobile Decision

Life and Health Insurance

Property and Liability Insurance

Investment Basics

Securities Markets

Investing in Stocks

Investing in Bonds and Other Alternatives

Mutual Funds: An Easy Way to Diversify

Estate Planning: Saving Your Heirs Money and Headaches

Financial Life Events Fitting the Pieces Together

Filters