Question 1

Most employees in the United States today are covered by an employer funded defined-benefit plan.

Accepted Answer

A) True 
 B)False

Question 2

Explain why we do not invest in Social Security.What are the four basic benefits for those who are qualified?

Accepted Answer

We actually purchase mandatory

Question 3

What are the advantages and disadvantages of a defined-contribution plan like a 401k?

Accepted Answer

The big advantages are the tax-deductibi

Question 4

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 5

Tran is employed at a company that annually contributes anywhere from 2% up to 12% of his salary into his retirement plan,depending on how good the company's financials were that year.This type of contribution plan is a(n)________ plan.

Accepted Answer

A)  401(k) 
B)  ESOP 
C)  profit-sharing 
D)  performance 
A)  401(k) 
B)  ESOP 
C)  profit-sharing 
D)  performance

Question 6

What is the purpose of a rollover when it comes to retirement plans?

Accepted Answer

With the popularity of defined-contribut

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

If your employer offers a 401(k)or 403(b)plan,why should you participate?

Accepted Answer

Not only are the plans conveni

Question 9

What are the disadvantages of an ESOP retirement plan?

Accepted Answer

A)  Your retirement account is not diversified. 
B)  The return on your account is subject to the success of the company. 
C)  If the company files for bankruptcy, the stock in your account could become worthless. 
D)  All of the above are correct. 
E)  Only A and C are correct. 
A)  Your retirement account is not diversified. 
B)  The return on your account is subject to the success of the company. 
C)  If the company files for bankruptcy, the stock in your account could become worthless. 
D)  All of the above are correct. 
E)  Only A and C are correct.

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

For low income senior households Social Security is a very important financial asset.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

Compare and contrast the defined-contribution plans.

Accepted Answer

Under profit-sharing plans your employer

Question 14

Social Security is a plan where current workers' contributions pay for current retiree's benefits.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following statements about saving for college is not true?

Accepted Answer

A)  The Coverdell Education Savings Account works just like the Roth IRA, except with respect to contributions. 
B)  If the money in a Coverdell Education Savings Account isn't used for college, taxes and penalties may apply. 
C)  Some 529 plans are prepaid college tuition plans. 
D)  You must open a 529 plan sponsored by the state in which you reside. 
E)  529 college savings plans offer more flexibility than prepaid college tuition plans. 
A)  The Coverdell Education Savings Account works just like the Roth IRA, except with respect to contributions. 
B)  If the money in a Coverdell Education Savings Account isn't used for college, taxes and penalties may apply. 
C)  Some 529 plans are prepaid college tuition plans. 
D)  You must open a 529 plan sponsored by the state in which you reside. 
E)  529 college savings plans offer more flexibility than prepaid college tuition plans.

Question 16

Suppose that you have estimated that,to provide for your retirement income,you will need $2,250,000 on deposit in your retirement account when you retire.You believe that you will earn an average of 11% on your retirement investments until you retire in 35 years.What must your annual deposits be to accumulate this total?

Accepted Answer

A)  $21,991.14 
B)  $6,586.85 
C)  $5,904.84 
D)  $6,878.77 
E)  None of the above 
A)  $21,991.14 
B)  $6,586.85 
C)  $5,904.84 
D)  $6,878.77 
E)  None of the above

Question 17

Which of the following is a problem associated with many defined-benefits programs?

Accepted Answer

A)  Lack of portability 
B)  Failure to adjust for inflation once payments begin 
C)  Many are unfunded. 
D)  All of the above 
E)  A and C only 
A)  Lack of portability 
B)  Failure to adjust for inflation once payments begin 
C)  Many are unfunded. 
D)  All of the above 
E)  A and C only

Question 18

Why have many companies switched from traditional defined-benefits plans to cash-balance plans?

Accepted Answer

A)  They want to shower their employees with money 
B)  Regulatory reform made it necessary. 
C)  They save money with them as a result of reduced future benefits for older workers. 
D)  All of the above are correct. 
E)  Only B and C are correct. 
A)  They want to shower their employees with money 
B)  Regulatory reform made it necessary. 
C)  They save money with them as a result of reduced future benefits for older workers. 
D)  All of the above are correct. 
E)  Only B and C are correct.

Question 19

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 20

The system of Social Security is based on young working people paying taxes to support older retired people.The dependency ratio is the number of workers to retirees.Forty years ago it was 16 workers for every one retiree.What will happen to this ratio by the year 2048?

Accepted Answer

A)  It will reverse so that there will be more retirees than workers. 
B)  It will increase, because there will be more young workers than retirees. 
C)  It will decline to 2 workers for every 1 retiree. 
D)  Nothing, since the ratio of young people to old people does not change. 
A)  It will reverse so that there will be more retirees than workers. 
B)  It will increase, because there will be more young workers than retirees. 
C)  It will decline to 2 workers for every 1 retiree. 
D)  Nothing, since the ratio of young people to old people does not change.

Most employees in the United States today are covered by an employer funded defined-benefit plan.

Explain why we do not invest in Social Security.What are the four basic benefits for those who are qualified?

What are the advantages and disadvantages of a defined-contribution plan like a 401k?

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

Tran is employed at a company that annually contributes anywhere from 2% up to 12% of his salary into his retirement plan,depending on how good the company's financials were that year.This type of contribution plan is a(n)________ plan.

What is the purpose of a rollover when it comes to retirement plans?

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

If your employer offers a 401(k)or 403(b)plan,why should you participate?

What are the disadvantages of an ESOP retirement plan?

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

For low income senior households Social Security is a very important financial asset.

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

Compare and contrast the defined-contribution plans.

Social Security is a plan where current workers' contributions pay for current retiree's benefits.

Which of the following statements about saving for college is not true?

Which of the following is a problem associated with many defined-benefits programs?

Why have many companies switched from traditional defined-benefits plans to cash-balance plans?

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

The system of Social Security is based on young working people paying taxes to support older retired people.The dependency ratio is the number of workers to retirees.Forty years ago it was 16 workers for every one retiree.What will happen to this ratio by the year 2048?

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

Most employees in the United States today are covered by an employer funded defined-benefit plan.

Explain why we do not invest in Social Security.What are the four basic benefits for those who are qualified?

What are the advantages and disadvantages of a defined-contribution plan like a 401k?

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

Tran is employed at a company that annually contributes anywhere from 2% up to 12% of his salary into his retirement plan,depending on how good the company's financials were that year.This type of contribution plan is a(n)________ plan.

What is the purpose of a rollover when it comes to retirement plans?

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

If your employer offers a 401(k)or 403(b)plan,why should you participate?

What are the disadvantages of an ESOP retirement plan?

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

For low income senior households Social Security is a very important financial asset.

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

Compare and contrast the defined-contribution plans.

Social Security is a plan where current workers' contributions pay for current retiree's benefits.

Which of the following statements about saving for college is not true?

Which of the following is a problem associated with many defined-benefits programs?

Why have many companies switched from traditional defined-benefits plans to cash-balance plans?

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

The system of Social Security is based on young working people paying taxes to support older retired people.The dependency ratio is the number of workers to retirees.Forty years ago it was 16 workers for every one retiree.What will happen to this ratio by the year 2048?

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