Question 1

Women need to save more money for retirement than men because they

Accepted Answer

A) get less from Social Security. 
B) get fewer retirement benefits from employer plans. 
C) live longer. 
D) (All of these.) 
A) get less from Social Security. 
B) get fewer retirement benefits from employer plans. 
C) live longer. 
D) (All of these.) D

Question 2

A beneficiary designation on an asset allows that asset to go directly through the probate process.

Accepted Answer

A) True 
 B)False  False

Question 3

The number of credits you have earned determines your eligibility for Social Security benefits.

Accepted Answer

A) True 
 B)False  True

Question 4

Surviving relatives have an obligation to repay the decedent's creditors for debts that exceed the assets of the estate.

Accepted Answer

A) True 
 B)False

Question 5

____ comprises the arrangements you make during your lifetime for the administration and transfer of your worldly possessions and assets after your death.

Accepted Answer

A) Probate court 
B) A will 
C) Estate planning 
D) A codicil 
A) Probate court 
B) A will 
C) Estate planning 
D) A codicil

Question 6

The older you are the more risk you should take when investing your retirement funds.

Accepted Answer

A) True 
 B)False

Question 7

Bobby is a 35-year-old pharmacist who is changing jobs.He has decided to personally accept a check from his $30,000 retirement account and to roll it over into an IRA within 60 days.In this case,the check will be for ____,and to avoid taxes and penalties he will need to deposit ____ in the IRA.

Accepted Answer

A) $24,000; $24,000 
B) $30,000; $30,000 
C) $30,000; $24,000 
D) $24,000; $30,000 
A) $24,000; $24,000 
B) $30,000; $30,000 
C) $30,000; $24,000 
D) $24,000; $30,000

Question 8

Early retirement from an employer would be most beneficial for a person expecting to live longer than the average life expectancy.

Accepted Answer

A) True 
 B)False

Question 9

Elizabeth is a secondary school teacher with an employer-sponsored retirement plan and is also self-employed as an educational consultant.If Elizabeth's net self-employment income is $16,000,what is her maximum contribution to a Keogh account?

Accepted Answer

A) $0 
B) $5,000 
C) $4,000 
D) $16,000 
A) $0 
B) $5,000 
C) $4,000 
D) $16,000

Question 10

Which property goes through a court-supervised transfer of a decedent's assets typically as outlined in a will?

Accepted Answer

A) The probate assets 
B) Assets transferred by contract 
C) Assets transferred by operation of law 
D) Life insurance proceeds 
A) The probate assets 
B) Assets transferred by contract 
C) Assets transferred by operation of law 
D) Life insurance proceeds

Question 11

You can choose to start receiving retirement benefits as early as age 62,regardless of your full-benefit retirement age.If you do so,however,your basic retirement benefit will be permanently reduced by as much as thirty percent.

Accepted Answer

A) True 
 B)False

Question 12

Employers usually offer employees retirement plans because the promise of a secure retirement represents an effective way to recruit and keep valuable employees.

Accepted Answer

A) True 
 B)False

Question 13

Withdrawing money early from a tax-sheltered retirement account makes it difficult to make up for lost compound growth.

Accepted Answer

A) True 
 B)False

Question 14

The age at which retirees born in 1960 or later will be able to receive full Social Security benefits

Accepted Answer

A) 59 ½. 
B) 65. 
C) 67. 
D) 72. 
A) 59 ½. 
B) 65. 
C) 67. 
D) 72.

Question 15

Which tax is assessed by certain state governments against beneficiaries who receive inherited property?

Accepted Answer

A) Estate tax 
B) Inheritance tax 
C) Excise tax 
D) Flat tax 
A) Estate tax 
B) Inheritance tax 
C) Excise tax 
D) Flat tax

Question 16

When no employer-sponsored retirement plan is offered,you should contribute to a(n)

Accepted Answer

A) SEP-IRA. 
B) Roth IRA. 
C) traditional IRA. 
D) Roth IRA or a traditional IRA. 
A) SEP-IRA. 
B) Roth IRA. 
C) traditional IRA. 
D) Roth IRA or a traditional IRA.

Question 17

A(n) ____ annuity provides monthly payments for as long as one of the two people¾usually a husband and wife¾is alive.

Accepted Answer

A) straight 
B) immediate 
C) joint-and-survivor 
D) variable 
A) straight 
B) immediate 
C) joint-and-survivor 
D) variable

Question 18

Social Security taxes withheld from an employee's paycheck are commonly called FICA taxes.

Accepted Answer

A) True 
 B)False

Question 19

A solo 401(k) is strictly for sole proprietors who have no employees.

Accepted Answer

A) True 
 B)False

Question 20

You should not consider investing in an annuity until all other tax-sheltered vehicles to save and invest for retirement have been maximized.

Accepted Answer

A) True 
 B)False

Women need to save more money for retirement than men because they

A beneficiary designation on an asset allows that asset to go directly through the probate process.

The number of credits you have earned determines your eligibility for Social Security benefits.

Surviving relatives have an obligation to repay the decedent's creditors for debts that exceed the assets of the estate.

____ comprises the arrangements you make during your lifetime for the administration and transfer of your worldly possessions and assets after your death.

The older you are the more risk you should take when investing your retirement funds.

Bobby is a 35-year-old pharmacist who is changing jobs.He has decided to personally accept a check from his $30,000 retirement account and to roll it over into an IRA within 60 days.In this case,the check will be for ,and to avoid taxes and penalties he will need to deposit in the IRA.

Early retirement from an employer would be most beneficial for a person expecting to live longer than the average life expectancy.

Elizabeth is a secondary school teacher with an employer-sponsored retirement plan and is also self-employed as an educational consultant.If Elizabeth's net self-employment income is $16,000,what is her maximum contribution to a Keogh account?

Which property goes through a court-supervised transfer of a decedent's assets typically as outlined in a will?

You can choose to start receiving retirement benefits as early as age 62,regardless of your full-benefit retirement age.If you do so,however,your basic retirement benefit will be permanently reduced by as much as thirty percent.

Employers usually offer employees retirement plans because the promise of a secure retirement represents an effective way to recruit and keep valuable employees.

Withdrawing money early from a tax-sheltered retirement account makes it difficult to make up for lost compound growth.

The age at which retirees born in 1960 or later will be able to receive full Social Security benefits

Which tax is assessed by certain state governments against beneficiaries who receive inherited property?

When no employer-sponsored retirement plan is offered,you should contribute to a(n)

A(n) ____ annuity provides monthly payments for as long as one of the two people¾usually a husband and wife¾is alive.

Social Security taxes withheld from an employee's paycheck are commonly called FICA taxes.

A solo 401(k) is strictly for sole proprietors who have no employees.

You should not consider investing in an annuity until all other tax-sheltered vehicles to save and invest for retirement have been maximized.

Understanding Personal Finance

Career Planning

Financial Statements,tools,and Budgets

Managing Income Taxes

Managing Checking and Savings Accounts

Building and Maintaining Good Credit

Credit Cards and Consumer Loans

Vehicles and Other Major Purchases

Obtaining Affordable Housing

Managing Property and Liability Risk

Managing Health Expenses

Life Insurance Planning

Investment Fundamentals

Investing in Stocks and Bonds

Mutual Funds and Exchange Traded Funds

Real Estate and High-Risk Investments

Filters

Exam 17: Retirement and Estate Planning

Women need to save more money for retirement than men because they

A beneficiary designation on an asset allows that asset to go directly through the probate process.

The number of credits you have earned determines your eligibility for Social Security benefits.

Surviving relatives have an obligation to repay the decedent's creditors for debts that exceed the assets of the estate.

____ comprises the arrangements you make during your lifetime for the administration and transfer of your worldly possessions and assets after your death.

The older you are the more risk you should take when investing your retirement funds.

Bobby is a 35-year-old pharmacist who is changing jobs.He has decided to personally accept a check from his $30,000 retirement account and to roll it over into an IRA within 60 days.In this case,the check will be for ____,and to avoid taxes and penalties he will need to deposit ____ in the IRA.

Early retirement from an employer would be most beneficial for a person expecting to live longer than the average life expectancy.

Elizabeth is a secondary school teacher with an employer-sponsored retirement plan and is also self-employed as an educational consultant.If Elizabeth's net self-employment income is $16,000,what is her maximum contribution to a Keogh account?

Which property goes through a court-supervised transfer of a decedent's assets typically as outlined in a will?

You can choose to start receiving retirement benefits as early as age 62,regardless of your full-benefit retirement age.If you do so,however,your basic retirement benefit will be permanently reduced by as much as thirty percent.

Employers usually offer employees retirement plans because the promise of a secure retirement represents an effective way to recruit and keep valuable employees.

Withdrawing money early from a tax-sheltered retirement account makes it difficult to make up for lost compound growth.

The age at which retirees born in 1960 or later will be able to receive full Social Security benefits

Which tax is assessed by certain state governments against beneficiaries who receive inherited property?

When no employer-sponsored retirement plan is offered,you should contribute to a(n)

A(n) ____ annuity provides monthly payments for as long as one of the two people¾usually a husband and wife¾is alive.

Social Security taxes withheld from an employee's paycheck are commonly called FICA taxes.

A solo 401(k) is strictly for sole proprietors who have no employees.

You should not consider investing in an annuity until all other tax-sheltered vehicles to save and invest for retirement have been maximized.

Understanding Personal Finance

Career Planning

Financial Statements,tools,and Budgets

Managing Income Taxes

Managing Checking and Savings Accounts

Building and Maintaining Good Credit

Credit Cards and Consumer Loans

Vehicles and Other Major Purchases

Obtaining Affordable Housing

Managing Property and Liability Risk

Managing Health Expenses

Life Insurance Planning

Investment Fundamentals

Investing in Stocks and Bonds

Mutual Funds and Exchange Traded Funds

Real Estate and High-Risk Investments

Filters

Bobby is a 35-year-old pharmacist who is changing jobs.He has decided to personally accept a check from his $30,000 retirement account and to roll it over into an IRA within 60 days.In this case,the check will be for ,and to avoid taxes and penalties he will need to deposit in the IRA.