Question 1

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 2

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 3

Under a defined benefit plan you receive a promised or "defined" benefit payout at retirement.

Accepted Answer

A) True 
 B)False

Question 4

Burt Reynolds has changed jobs.His last retirement plan's contributions depended on how well the company performed and he shared in the earnings.His present employer allows him ownership in the firm,although this is the riskiest plan.Burt's former plan was a(n)________ and his current plan is a(n)________.

Accepted Answer

A)  ESOP; money purchase plan 
B)  profit-sharing plan; ESOP 
C)  ESOP; 401(k) 
D)  profit-sharing plan; thrift and savings plan 
E)  ESOP; profit sharing plan 
A)  ESOP; money purchase plan 
B)  profit-sharing plan; ESOP 
C)  ESOP; 401(k) 
D)  profit-sharing plan; thrift and savings plan 
E)  ESOP; profit sharing plan

Question 5

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 6

Your decision on what type of annuity to purchase will have a dramatic impact on the monthly payments you will receive upon retirement.

Accepted Answer

A) True 
 B)False

Question 7

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 8

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 9

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 10

Retirement income comes from which of the following sources?

Accepted Answer

A)  Social Security 
B)  Pensions 
C)  Asset income 
D)  Earnings 
E)  All of the above 
A)  Social Security 
B)  Pensions 
C)  Asset income 
D)  Earnings 
E)  All of the above

Question 11

A person may have more than one qualified retirement plan open at the same time.

Accepted Answer

A) True 
 B)False

Question 12

How are distributions/payouts/settlements taxed?

Accepted Answer

Annuity payouts are taxed as n

Question 13

With a Roth IRA,after five years you can make withdrawals before age 59 1/2 without a penalty but you must pay taxes on the withdrawals.

Accepted Answer

A) True 
 B)False

Question 14

Since the 2000s,the average personal savings rate in the U.S.has decreased.

Accepted Answer

A) True 
 B)False

Question 15

Reggie has two children.He is wanting to put money away for their college education.What type of plan can only be used for college and graduate school,and allows contributions of up to $250,000?

Accepted Answer

A)  403(b) 
B)  ESOP 
C)  529 
D)  12b-4 
A)  403(b) 
B)  ESOP 
C)  529 
D)  12b-4

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

To be eligible for Social Security benefits,you receive one credit for every $1,200 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 18

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 19

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 20

How does Uncle Sam determine our Social Security monthly retirement check for all practical purposes?

Accepted Answer

Our number of years of earnings,average

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

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

Under a defined benefit plan you receive a promised or "defined" benefit payout at retirement.

Burt Reynolds has changed jobs.His last retirement plan's contributions depended on how well the company performed and he shared in the earnings.His present employer allows him ownership in the firm,although this is the riskiest plan.Burt's former plan was a(n) and his current plan is a(n).

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

Your decision on what type of annuity to purchase will have a dramatic impact on the monthly payments you will receive upon retirement.

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

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

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

Retirement income comes from which of the following sources?

A person may have more than one qualified retirement plan open at the same time.

How are distributions/payouts/settlements taxed?

With a Roth IRA,after five years you can make withdrawals before age 59 1/2 without a penalty but you must pay taxes on the withdrawals.

Since the 2000s,the average personal savings rate in the U.S.has decreased.

Reggie has two children.He is wanting to put money away for their college education.What type of plan can only be used for college and graduate school,and allows contributions of up to $250,000?

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

To be eligible for Social Security benefits,you receive one credit for every $1,200 in wages that you earn,up to 4 credits per year.How many total credits do you need to qualify for benefits?

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

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.

How does Uncle Sam determine our Social Security monthly retirement check for all practical purposes?

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

Student and Consumer Loans: The Role of Planned Borrowing

The Home and Automobile Decision

Life and Health Insurance

Property and Liability Insurance

Investment Basics

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 15: Retirement Planning

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

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

Under a defined benefit plan you receive a promised or "defined" benefit payout at retirement.

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

Your decision on what type of annuity to purchase will have a dramatic impact on the monthly payments you will receive upon retirement.

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

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

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

Retirement income comes from which of the following sources?

A person may have more than one qualified retirement plan open at the same time.

How are distributions/payouts/settlements taxed?

With a Roth IRA,after five years you can make withdrawals before age 59 1/2 without a penalty but you must pay taxes on the withdrawals.

Since the 2000s,the average personal savings rate in the U.S.has decreased.

Reggie has two children.He is wanting to put money away for their college education.What type of plan can only be used for college and graduate school,and allows contributions of up to $250,000?

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

To be eligible for Social Security benefits,you receive one credit for every $1,200 in wages that you earn,up to 4 credits per year.How many total credits do you need to qualify for benefits?

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

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.

How does Uncle Sam determine our Social Security monthly retirement check for all practical purposes?

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

Student and Consumer Loans: The Role of Planned Borrowing

The Home and Automobile Decision

Life and Health Insurance

Property and Liability Insurance

Investment Basics

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