Question 1

How is the size of a person's Social Security retirement benefits determined?

Accepted Answer

A)  It depends on the number of credits earned in a person's lifetime. 
B)  It depends on the average level of earning over a person's lifetime. 
C)  It depends on the number of years a person has paid Social Security taxes. 
D)  All of the above are correct. 
E)  Only B and C are correct. 
A)  It depends on the number of credits earned in a person's lifetime. 
B)  It depends on the average level of earning over a person's lifetime. 
C)  It depends on the number of years a person has paid Social Security taxes. 
D)  All of the above are correct. 
E)  Only B and C are correct.

Question 2

What are the major differences between the new IRAs and the traditional IRA?

Accepted Answer

All three of them are on a tax-deferred

Question 3

Once May Lou starts receiving her $1,200 monthly annuity payments she will pay income tax as if the annuity were

Accepted Answer

A)  tax-deferred. 
B)  tax-sheltered. 
C)  tax-exempt. 
D)  tax-free income. 
E)  normal income. 
A)  tax-deferred. 
B)  tax-sheltered. 
C)  tax-exempt. 
D)  tax-free income. 
E)  normal income.

Question 4

Consistently saving a little money for retirement when you are in your twenties is much better than saving a lot more money when you are in your fifties.

Accepted Answer

A) True 
 B)False

Question 5

Why have employers switched to defined-contribution plans instead of defined-benefits plans for most companies?

Accepted Answer

A)  They remove the financial risk for future pension costs away from the company and pass it on to the employee. 
B)  The employer doesn't want to do any bookkeeping for the retirement plan. 
C)  Employers care deeply about what employees eventually receive from their plan. 
D)  All of the above are correct. 
E)  Only A and B are correct. 
A)  They remove the financial risk for future pension costs away from the company and pass it on to the employee. 
B)  The employer doesn't want to do any bookkeeping for the retirement plan. 
C)  Employers care deeply about what employees eventually receive from their plan. 
D)  All of the above are correct. 
E)  Only A and B are correct.

Question 6

A joint and survivor annuity provides payments for both you and your spouse.

Accepted Answer

A) True 
 B)False

Question 7

Of the tax-favored retirement plans for the self-employed and small business employee,one is limited to $52,000 of annual contributions per person.It is the ________ plan.

Accepted Answer

A)  Keogh 
B)  SEP-IRA 
C)  SIMPLE 
D)  401(k) 
E)  thrift 
A)  Keogh 
B)  SEP-IRA 
C)  SIMPLE 
D)  401(k) 
E)  thrift

Question 8

One of the drawbacks to defined-benefit plans are their lack of portability,meaning that if you leave the company the value of the pension is not likely to go with you.

Accepted Answer

A) True 
 B)False

Question 9

The Savers Tax Credit is designed to encourage low to moderate income workers contribute to their retirement accounts.

Accepted Answer

A) True 
 B)False

Question 10

Brian works for Walmart.Walmart contributes company stock into his retirement account instead of cash.This is called a(n)

Accepted Answer

A)  ESOP. 
B)  thrift. 
C)  EFLP. 
D)  stock-contribution plan. 
E)  none of the above. 
A)  ESOP. 
B)  thrift. 
C)  EFLP. 
D)  stock-contribution plan. 
E)  none of the above.

Question 11

Erica works for a company with a 401(k)plan.The company matches at $0.50 on the dollar the first 6% of the employee's salary contributed to the 401(k).If Erica earns $90,000 and contributes 12% of her salary,how much will the employer match be in dollars for the year?

Accepted Answer

A)  $1,400 
B)  $2,700 
C)  $3,500 
D)  $6,200 
A)  $1,400 
B)  $2,700 
C)  $3,500 
D)  $6,200

Question 12

Because inflation makes goods and services cost more over time,one would be wise to always plan for inflation when planning one's retirement.

Accepted Answer

A) True 
 B)False

Question 13

Frank is considering a new job.However he is concerned about his pension fund.He knows that ________ which is the requirement that he must work for his firm for a specified period of time prior to gaining ownership of the retirement contributions made by his employer has to be met first.

Accepted Answer

A)  tenuring 
B)  certifying 
C)  vesting 
D)  validating 
E)  none of the above 
A)  tenuring 
B)  certifying 
C)  vesting 
D)  validating 
E)  none of the above

Question 14

Contributions to Roth IRAs are tax deductible.

Accepted Answer

A) True 
 B)False

Question 15

Rihab just got a new job and wants to roll over her retirement account from her previous job at a large corporation into an IRA.Which of the following is true?

Accepted Answer

A)  Doing this avoids the 10% early distribution penalty. 
B)  Rihab should speak to a financial planner to learn make sure she follows the rollover rules to avoid taxes. 
C)  Both A and B 
D)  Neither A nor B 
A)  Doing this avoids the 10% early distribution penalty. 
B)  Rihab should speak to a financial planner to learn make sure she follows the rollover rules to avoid taxes. 
C)  Both A and B 
D)  Neither A nor B

Question 16

If you have a defined-benefit retirement plan,you're considered an "inactive participant."

Accepted Answer

A) True 
 B)False

Question 17

Under a funded pension plan,the employer makes regular contributions to a trustee who collects and invests the retirement funds.

Accepted Answer

A) True 
 B)False

Question 18

You are participating in a pension plan where the company's contributions vary from year to year,depending on the firm's performance.This is an example of a(n)

Accepted Answer

A)  variable contribution plan. 
B)  earnings establishment plan. 
C)  performance retirement plan. 
D)  profit-sharing plan. 
E)  none of the above. 
A)  variable contribution plan. 
B)  earnings establishment plan. 
C)  performance retirement plan. 
D)  profit-sharing plan. 
E)  none of the above.

Question 19

Are retirement plans different for the self-employed and employees of small businesses? Do you have to work full-time to qualify for one?

Accepted Answer

Both part-time and full-time small busin

Question 20

Discuss the basic considerations when facing retirement.

Accepted Answer

Make sure you meet the qualifications to

How is the size of a person's Social Security retirement benefits determined?

What are the major differences between the new IRAs and the traditional IRA?

Once May Lou starts receiving her $1,200 monthly annuity payments she will pay income tax as if the annuity were

Consistently saving a little money for retirement when you are in your twenties is much better than saving a lot more money when you are in your fifties.

Why have employers switched to defined-contribution plans instead of defined-benefits plans for most companies?

A joint and survivor annuity provides payments for both you and your spouse.

Of the tax-favored retirement plans for the self-employed and small business employee,one is limited to $52,000 of annual contributions per person.It is the ________ plan.

One of the drawbacks to defined-benefit plans are their lack of portability,meaning that if you leave the company the value of the pension is not likely to go with you.

The Savers Tax Credit is designed to encourage low to moderate income workers contribute to their retirement accounts.

Brian works for Walmart.Walmart contributes company stock into his retirement account instead of cash.This is called a(n)

Erica works for a company with a 401(k)plan.The company matches at $0.50 on the dollar the first 6% of the employee's salary contributed to the 401(k).If Erica earns $90,000 and contributes 12% of her salary,how much will the employer match be in dollars for the year?

Because inflation makes goods and services cost more over time,one would be wise to always plan for inflation when planning one's retirement.

Frank is considering a new job.However he is concerned about his pension fund.He knows that ________ which is the requirement that he must work for his firm for a specified period of time prior to gaining ownership of the retirement contributions made by his employer has to be met first.

Contributions to Roth IRAs are tax deductible.

Rihab just got a new job and wants to roll over her retirement account from her previous job at a large corporation into an IRA.Which of the following is true?

If you have a defined-benefit retirement plan,you're considered an "inactive participant."

Under a funded pension plan,the employer makes regular contributions to a trustee who collects and invests the retirement funds.

You are participating in a pension plan where the company's contributions vary from year to year,depending on the firm's performance.This is an example of a(n)

Are retirement plans different for the self-employed and employees of small businesses? Do you have to work full-time to qualify for one?

Discuss the basic considerations when facing retirement.

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

How is the size of a person's Social Security retirement benefits determined?

What are the major differences between the new IRAs and the traditional IRA?

Once May Lou starts receiving her $1,200 monthly annuity payments she will pay income tax as if the annuity were

Consistently saving a little money for retirement when you are in your twenties is much better than saving a lot more money when you are in your fifties.

Why have employers switched to defined-contribution plans instead of defined-benefits plans for most companies?

A joint and survivor annuity provides payments for both you and your spouse.

Of the tax-favored retirement plans for the self-employed and small business employee,one is limited to $52,000 of annual contributions per person.It is the ________ plan.

One of the drawbacks to defined-benefit plans are their lack of portability,meaning that if you leave the company the value of the pension is not likely to go with you.

The Savers Tax Credit is designed to encourage low to moderate income workers contribute to their retirement accounts.

Brian works for Walmart.Walmart contributes company stock into his retirement account instead of cash.This is called a(n)

Erica works for a company with a 401(k)plan.The company matches at $0.50 on the dollar the first 6% of the employee's salary contributed to the 401(k).If Erica earns $90,000 and contributes 12% of her salary,how much will the employer match be in dollars for the year?

Because inflation makes goods and services cost more over time,one would be wise to always plan for inflation when planning one's retirement.

Frank is considering a new job.However he is concerned about his pension fund.He knows that ________ which is the requirement that he must work for his firm for a specified period of time prior to gaining ownership of the retirement contributions made by his employer has to be met first.

Contributions to Roth IRAs are tax deductible.

Rihab just got a new job and wants to roll over her retirement account from her previous job at a large corporation into an IRA.Which of the following is true?

If you have a defined-benefit retirement plan,you're considered an "inactive participant."

Under a funded pension plan,the employer makes regular contributions to a trustee who collects and invests the retirement funds.

You are participating in a pension plan where the company's contributions vary from year to year,depending on the firm's performance.This is an example of a(n)

Are retirement plans different for the self-employed and employees of small businesses? Do you have to work full-time to qualify for one?

Discuss the basic considerations when facing retirement.

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