Question 1

When you die without having a valid will you will have died

Accepted Answer

A) escheat. 
B) nonprobate. 
C) codicil. 
D) intestate. 
A) escheat. 
B) nonprobate. 
C) codicil. 
D) intestate.

Question 2

An employee stock-ownership plan allows the employees to regularly purchase shares of stock in the company at discounted prices.

Accepted Answer

A) True 
 B)False

Question 3

You must work forty years to be fully insured under Social Security.

Accepted Answer

A) True 
 B)False

Question 4

The partnership theory of marriage rights is the basis for the presumed intent of wedded couples to share their fortunes equally.

Accepted Answer

A) True 
 B)False

Question 5

By writing a will,property can be distributed without going through probate.

Accepted Answer

A) True 
 B)False

Question 6

In a cash-balance plan,the employer contributes ____ of the funds and the employee contributes ____.

Accepted Answer

A) 100 percent; nothing 
B) any amount; a matched amount 
C) half; half 
D) nothing; 100 percent 
A) 100 percent; nothing 
B) any amount; a matched amount 
C) half; half 
D) nothing; 100 percent

Question 7

Making tax-deferred deposits into a retirement account means that the funds are

Accepted Answer

A) taxed when deposited but not taxed when withdrawn. 
B) not taxed when deposited but taxed when withdrawn. 
C) taxed both when deposited and when withdrawn but not while held in the account. 
D) never taxed. 
A) taxed when deposited but not taxed when withdrawn. 
B) not taxed when deposited but taxed when withdrawn. 
C) taxed both when deposited and when withdrawn but not while held in the account. 
D) never taxed.

Question 8

Social Security is funded via the federal income tax.

Accepted Answer

A) True 
 B)False

Question 9

The Pension Benefit Guarantee Corporation provides an insurance program that guarantees certain retirement benefits for eligible retirees.

Accepted Answer

A) True 
 B)False

Question 10

One can create a trust without an attorney.

Accepted Answer

A) True 
 B)False

Question 11

How many years are you allowed for correcting any errors in your earnings history as listed in your Social Security Estimate?

Accepted Answer

A) 1 
B) 3 
C) 5 
D) 7 
A) 1 
B) 3 
C) 5 
D) 7

Question 12

Which of the following people would receive an asset should the beneficiary die before the owner of the asset?

Accepted Answer

A) Remainderman 
B) Trustee 
C) Corpus beneficiary 
D) Contingent beneficiary 
A) Remainderman 
B) Trustee 
C) Corpus beneficiary 
D) Contingent beneficiary

Question 13

ERISA requires that employers offer a retirement plan.

Accepted Answer

A) True 
 B)False

Question 14

Tax-sheltered retirement accounts allow a certain portion of your income to remain exempt from income taxes for the current year.

Accepted Answer

A) True 
 B)False

Question 15

All adults should engage in the estate planning process.

Accepted Answer

A) True 
 B)False

Question 16

Probate is a court procedure to distribute assets of an estate.

Accepted Answer

A) True 
 B)False

Question 17

Trusts can only take effect during the grantor's life.

Accepted Answer

A) True 
 B)False

Question 18

You can automatically save more for retirement as your income increases by setting your savings target as a percentage of income rather than a specific dollar amount.

Accepted Answer

A) True 
 B)False

Question 19

Laura and Alan are a married couple with three small children.Alan earns $60,000 a year,but Laura has no earned income.What is the maximum total contribution Laura and Alan can make to their IRA accounts this year?

Accepted Answer

A) $11,000 
B) $5,500 
C) $7,500 
D) $0 
A) $11,000 
B) $5,500 
C) $7,500 
D) $0

Question 20

The goal of ____ is to identify the investor's acceptable level of risk tolerance and then find an optimal portfolio of assets that will have the highest expected returns for that level of risk.

Accepted Answer

A) modern market allocation 
B) market timing 
C) buy-to-hold 
D) Monte Carlo analysis 
A) modern market allocation 
B) market timing 
C) buy-to-hold 
D) Monte Carlo analysis

When you die without having a valid will you will have died

An employee stock-ownership plan allows the employees to regularly purchase shares of stock in the company at discounted prices.

You must work forty years to be fully insured under Social Security.

The partnership theory of marriage rights is the basis for the presumed intent of wedded couples to share their fortunes equally.

By writing a will,property can be distributed without going through probate.

In a cash-balance plan,the employer contributes of the funds and the employee contributes .

Making tax-deferred deposits into a retirement account means that the funds are

Social Security is funded via the federal income tax.

The Pension Benefit Guarantee Corporation provides an insurance program that guarantees certain retirement benefits for eligible retirees.

One can create a trust without an attorney.

How many years are you allowed for correcting any errors in your earnings history as listed in your Social Security Estimate?

Which of the following people would receive an asset should the beneficiary die before the owner of the asset?

ERISA requires that employers offer a retirement plan.

Tax-sheltered retirement accounts allow a certain portion of your income to remain exempt from income taxes for the current year.

All adults should engage in the estate planning process.

Probate is a court procedure to distribute assets of an estate.

Trusts can only take effect during the grantor's life.

You can automatically save more for retirement as your income increases by setting your savings target as a percentage of income rather than a specific dollar amount.

Laura and Alan are a married couple with three small children.Alan earns $60,000 a year,but Laura has no earned income.What is the maximum total contribution Laura and Alan can make to their IRA accounts this year?

The goal of ____ is to identify the investor's acceptable level of risk tolerance and then find an optimal portfolio of assets that will have the highest expected returns for that level of risk.

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

When you die without having a valid will you will have died

An employee stock-ownership plan allows the employees to regularly purchase shares of stock in the company at discounted prices.

You must work forty years to be fully insured under Social Security.

The partnership theory of marriage rights is the basis for the presumed intent of wedded couples to share their fortunes equally.

By writing a will,property can be distributed without going through probate.

In a cash-balance plan,the employer contributes ____ of the funds and the employee contributes ____.

Making tax-deferred deposits into a retirement account means that the funds are

Social Security is funded via the federal income tax.

The Pension Benefit Guarantee Corporation provides an insurance program that guarantees certain retirement benefits for eligible retirees.

One can create a trust without an attorney.

How many years are you allowed for correcting any errors in your earnings history as listed in your Social Security Estimate?

Which of the following people would receive an asset should the beneficiary die before the owner of the asset?

ERISA requires that employers offer a retirement plan.

Tax-sheltered retirement accounts allow a certain portion of your income to remain exempt from income taxes for the current year.

All adults should engage in the estate planning process.

Probate is a court procedure to distribute assets of an estate.

Trusts can only take effect during the grantor's life.

You can automatically save more for retirement as your income increases by setting your savings target as a percentage of income rather than a specific dollar amount.

Laura and Alan are a married couple with three small children.Alan earns $60,000 a year,but Laura has no earned income.What is the maximum total contribution Laura and Alan can make to their IRA accounts this year?

The goal of ____ is to identify the investor's acceptable level of risk tolerance and then find an optimal portfolio of assets that will have the highest expected returns for that level of risk.

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

In a cash-balance plan,the employer contributes of the funds and the employee contributes .