Question 1

As a young consumer you would be wise to be very cautious with your investing and avoid investing in stocks.

Accepted Answer

A) True 
 B)False

Question 2

Alex works for a company with a 401(k) plan. He currently earns $80,000 in gross salary and contributes 8% of his gross salary into his 401(k) account. If his marginal tax rate is 33%, how much income tax liability is he saving by participating in his 401(k)?

Accepted Answer

A)  $6,400 
B)  $2,112 
C)  $6,000 
D)  $16,800 
A)  $6,400 
B)  $2,112 
C)  $6,000 
D)  $16,800

Question 3

Compare and contrast the defined-contribution plans.

Accepted Answer

Under profit-sharing plans your employer

Question 4

Discuss the basic considerations when facing retirement.

Accepted Answer

Make sure you meet the qualifications to

Question 5

Which of the following statements is true regarding Social Security retirement benefits?

Accepted Answer

A)  It attempts to replace 42% of your average earnings. 
B)  Not all occupations are covered. 
C)  Some people's benefits may be taxed. 
D)  You may retire beginning at age 62 with reduced benefits. 
E)  all of the above 
A)  It attempts to replace 42% of your average earnings. 
B)  Not all occupations are covered. 
C)  Some people's benefits may be taxed. 
D)  You may retire beginning at age 62 with reduced benefits. 
E)  all of the above

Question 6

Valerie works as a free-lance artist. Her financial advisor suggested she establish a Keogh plan for her retirement. Is this an appropriate suggestion for her?

Accepted Answer

A)  Yes 
B)  No 
A)  Yes 
B)  No

Question 7

Elaborate on the basics of annuities and payouts.

Accepted Answer

A single life annuity allows you to rece

Question 8

If all contributions to your IRA are tax deductible, then all withdrawals from your IRA will be taxed, unless you're just moving your money into another IRA.

Accepted Answer

A) True 
 B)False

Question 9

With a lump-sum distribution of your retirement benefits, you must pay all of the income taxes on the entire amount up front.

Accepted Answer

A) True 
 B)False

Question 10

To be eligible for Social Security benefits, you receive one credit for every $1,120 in wages that you earn, up to 4 credits per year. How many total credits do you need to qualify for benefits?

Accepted Answer

A)  4 
B)  20 
C)  30 
D)  40 
A)  4 
B)  20 
C)  30 
D)  40

Question 11

What does the term 'self directed' mean concerning retirement accounts?

Accepted Answer

The term self directed means that the in

Question 12

Social Security is a health care, retirement, disability income, and life insurance plan.

Accepted Answer

A) True 
 B)False

Question 13

It is a good idea to start saving for retirement as early as possible to take advantage of compounding returns on your savings.

Accepted Answer

A) True 
 B)False

Question 14

If you are self-employed or work for a small business which of the following retirement plans would you be most likely to have?

Accepted Answer

A)  403(b) 
B)  401(k) 
C)  thrift and savings plan 
D)  Keogh plan 
E)  none of the above 
A)  403(b) 
B)  401(k) 
C)  thrift and savings plan 
D)  Keogh plan 
E)  none of the above

Question 15

By what age must the savings within a 529 plan be withdrawn?

Accepted Answer

A)  18 
B)  22 
C)  25 
D)  30 
E)  There is no such restriction. 
A)  18 
B)  22 
C)  25 
D)  30 
E)  There is no such restriction.

Question 16

One of the best things about retirement is that retirees don't have to pay income taxes once they retire.

Accepted Answer

A) True 
 B)False

Question 17

What are some very important things to monitor concerning your retirement plan, both before and after retirement?

Accepted Answer

Inflation and tax policy will have an en

Question 18

Through the single life annuity, once you reach the age of 100 the annuity payments cease.

Accepted Answer

A) True 
 B)False

Question 19

Annuity payments will adjust for inflation over the years of retirement.

Accepted Answer

A) True 
 B)False

Question 20

Fred and Carlie want to save some money for a down payment on a house. They figure it will take at least 10 years to save up enough money. Which of the following would be the best way for them to save this money?

Accepted Answer

A)  Traditional IRA 
B)  Roth IRA 
C)  529 Savings Plan 
D)  Keogh Plan 
A)  Traditional IRA 
B)  Roth IRA 
C)  529 Savings Plan 
D)  Keogh Plan

As a young consumer you would be wise to be very cautious with your investing and avoid investing in stocks.

Alex works for a company with a 401(k) plan. He currently earns $80,000 in gross salary and contributes 8% of his gross salary into his 401(k) account. If his marginal tax rate is 33%, how much income tax liability is he saving by participating in his 401(k)?

Compare and contrast the defined-contribution plans.

Discuss the basic considerations when facing retirement.

Which of the following statements is true regarding Social Security retirement benefits?

Valerie works as a free-lance artist. Her financial advisor suggested she establish a Keogh plan for her retirement. Is this an appropriate suggestion for her?

Elaborate on the basics of annuities and payouts.

If all contributions to your IRA are tax deductible, then all withdrawals from your IRA will be taxed, unless you're just moving your money into another IRA.

With a lump-sum distribution of your retirement benefits, you must pay all of the income taxes on the entire amount up front.

To be eligible for Social Security benefits, you receive one credit for every $1,120 in wages that you earn, up to 4 credits per year. How many total credits do you need to qualify for benefits?

What does the term 'self directed' mean concerning retirement accounts?

Social Security is a health care, retirement, disability income, and life insurance plan.

It is a good idea to start saving for retirement as early as possible to take advantage of compounding returns on your savings.

If you are self-employed or work for a small business which of the following retirement plans would you be most likely to have?

By what age must the savings within a 529 plan be withdrawn?

One of the best things about retirement is that retirees don't have to pay income taxes once they retire.

What are some very important things to monitor concerning your retirement plan, both before and after retirement?

Through the single life annuity, once you reach the age of 100 the annuity payments cease.

Annuity payments will adjust for inflation over the years of retirement.

Fred and Carlie want to save some money for a down payment on a house. They figure it will take at least 10 years to save up enough money. Which of the following would be the best way for them to save this money?

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

As a young consumer you would be wise to be very cautious with your investing and avoid investing in stocks.

Alex works for a company with a 401(k) plan. He currently earns $80,000 in gross salary and contributes 8% of his gross salary into his 401(k) account. If his marginal tax rate is 33%, how much income tax liability is he saving by participating in his 401(k)?

Compare and contrast the defined-contribution plans.

Discuss the basic considerations when facing retirement.

Which of the following statements is true regarding Social Security retirement benefits?

Valerie works as a free-lance artist. Her financial advisor suggested she establish a Keogh plan for her retirement. Is this an appropriate suggestion for her?

Elaborate on the basics of annuities and payouts.

If all contributions to your IRA are tax deductible, then all withdrawals from your IRA will be taxed, unless you're just moving your money into another IRA.

With a lump-sum distribution of your retirement benefits, you must pay all of the income taxes on the entire amount up front.

To be eligible for Social Security benefits, you receive one credit for every $1,120 in wages that you earn, up to 4 credits per year. How many total credits do you need to qualify for benefits?

What does the term 'self directed' mean concerning retirement accounts?

Social Security is a health care, retirement, disability income, and life insurance plan.

It is a good idea to start saving for retirement as early as possible to take advantage of compounding returns on your savings.

If you are self-employed or work for a small business which of the following retirement plans would you be most likely to have?

By what age must the savings within a 529 plan be withdrawn?

One of the best things about retirement is that retirees don't have to pay income taxes once they retire.

What are some very important things to monitor concerning your retirement plan, both before and after retirement?

Through the single life annuity, once you reach the age of 100 the annuity payments cease.

Annuity payments will adjust for inflation over the years of retirement.

Fred and Carlie want to save some money for a down payment on a house. They figure it will take at least 10 years to save up enough money. Which of the following would be the best way for them to save this money?

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