Question 1

A(n) ____ is created to become effective on the death of the grantor.

Accepted Answer

A) testamentary trust 
B) advanced directive 
C) power of attorney 
D) escheat 
A) testamentary trust 
B) advanced directive 
C) power of attorney 
D) escheat

Question 2

Which of the following pension plan features is (are) especially important to younger workers who anticipate changing jobs more frequently?

Accepted Answer

A) Vesting 
B) Portability 
C) Integration of benefits 
D) Vesting and portability 
A) Vesting 
B) Portability 
C) Integration of benefits 
D) Vesting and portability

Question 3

For Social Security purposes,fully insured status implies that the worker will receive the maximum dollar amount of benefits allowable.

Accepted Answer

A) True 
 B)False

Question 4

The ______ phase are the years during which you need to save for retirement.

Accepted Answer

A) accumulation 
B) distribution 
C) early 
D) later 
A) accumulation 
B) distribution 
C) early 
D) later

Question 5

The annual exclusion amount is an annual amount of $14,000 that can be given to a relative or a friend to reduce one's total taxable estate.

Accepted Answer

A) True 
 B)False

Question 6

The number of credits you earn determines the dollar amount of your Social Security benefits.

Accepted Answer

A) True 
 B)False

Question 7

A retirement plan that is self-directed means that the employee decides.

Accepted Answer

A) how much the employer will contribute to the plan. 
B) how much the employee will contribute to the plan. 
C) where the funds contributed to the plan will be invested. 
D) Both b and C 
A) how much the employer will contribute to the plan. 
B) how much the employee will contribute to the plan. 
C) where the funds contributed to the plan will be invested. 
D) Both b and C

Question 8

Shudan earned $9,600 working part-time last year.How many Social Security credits did Shudan earn for Social Security coverage?

Accepted Answer

A) 2 
B) 4 
C) 6 
D) 8 
A) 2 
B) 4 
C) 6 
D) 8

Question 9

A target-date retirement fund gives you a diversified portfolio that automatically shifts the asset mix away from equities and toward more conservative fixed-income investments as you approach the year of your retirement.

Accepted Answer

A) True 
 B)False

Question 10

In states with community property laws,the law assumes that the surviving spouse owns everything that both partners earned during the marriage.

Accepted Answer

A) True 
 B)False

Question 11

If you save well for your retirement,Social Security will only contribute about 40 percent of your retirement income.

Accepted Answer

A) True 
 B)False

Question 12

All funds in a tax-sheltered retirement plan are taxed every five years.

Accepted Answer

A) True 
 B)False

Question 13

The executor named in a will identifies assets,collects any money due,pays off debts,liquidates assets,files final income tax and estate tax returns,and with the court's permission distributes the balance of any remaining money and property to the beneficiaries.

Accepted Answer

A) True 
 B)False

Question 14

If you were born in 1994,you will reach your full-benefit retirement age for Social Security in 2061.

Accepted Answer

A) True 
 B)False

Question 15

You immediately benefit from putting money in a tax-sheltered retirement account because you can make the deposits with after-tax money.

Accepted Answer

A) True 
 B)False

Question 16

Employer-sponsored retirement plans have portability,allowing you to transfer the funds to another employer or self-managed retirement account when you leave employment.

Accepted Answer

A) True 
 B)False

Question 17

When a worker retires,other members of his or her immediate family may also be eligible to receive Social Security retirement benefits.

Accepted Answer

A) True 
 B)False

Question 18

The Monte Carlo simulation estimates how much you need to save if your investments performed better or worse than expected.

Accepted Answer

A) True 
 B)False

Question 19

Financial experts estimate that retirees need at least ____ percent of their preretirement income to live comfortably.

Accepted Answer

A) 50 to 60 
B) 60 to 70 
C) 70 to 80 
D) 80 to 100 
A) 50 to 60 
B) 60 to 70 
C) 70 to 80 
D) 80 to 100

Question 20

All of your employment income is subject to the Medicare tax.

Accepted Answer

A) True 
 B)False

A(n) ____ is created to become effective on the death of the grantor.

Which of the following pension plan features is (are) especially important to younger workers who anticipate changing jobs more frequently?

For Social Security purposes,fully insured status implies that the worker will receive the maximum dollar amount of benefits allowable.

The ______ phase are the years during which you need to save for retirement.

The annual exclusion amount is an annual amount of $14,000 that can be given to a relative or a friend to reduce one's total taxable estate.

The number of credits you earn determines the dollar amount of your Social Security benefits.

A retirement plan that is self-directed means that the employee decides.

Shudan earned $9,600 working part-time last year.How many Social Security credits did Shudan earn for Social Security coverage?

A target-date retirement fund gives you a diversified portfolio that automatically shifts the asset mix away from equities and toward more conservative fixed-income investments as you approach the year of your retirement.

In states with community property laws,the law assumes that the surviving spouse owns everything that both partners earned during the marriage.

If you save well for your retirement,Social Security will only contribute about 40 percent of your retirement income.

All funds in a tax-sheltered retirement plan are taxed every five years.

The executor named in a will identifies assets,collects any money due,pays off debts,liquidates assets,files final income tax and estate tax returns,and with the court's permission distributes the balance of any remaining money and property to the beneficiaries.

If you were born in 1994,you will reach your full-benefit retirement age for Social Security in 2061.

You immediately benefit from putting money in a tax-sheltered retirement account because you can make the deposits with after-tax money.

Employer-sponsored retirement plans have portability,allowing you to transfer the funds to another employer or self-managed retirement account when you leave employment.

When a worker retires,other members of his or her immediate family may also be eligible to receive Social Security retirement benefits.

The Monte Carlo simulation estimates how much you need to save if your investments performed better or worse than expected.

Financial experts estimate that retirees need at least ____ percent of their preretirement income to live comfortably.

All of your employment income is subject to the Medicare tax.

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

A(n) ____ is created to become effective on the death of the grantor.

Which of the following pension plan features is (are) especially important to younger workers who anticipate changing jobs more frequently?

For Social Security purposes,fully insured status implies that the worker will receive the maximum dollar amount of benefits allowable.

The ______ phase are the years during which you need to save for retirement.

The annual exclusion amount is an annual amount of $14,000 that can be given to a relative or a friend to reduce one's total taxable estate.

The number of credits you earn determines the dollar amount of your Social Security benefits.

A retirement plan that is self-directed means that the employee decides.

Shudan earned $9,600 working part-time last year.How many Social Security credits did Shudan earn for Social Security coverage?

A target-date retirement fund gives you a diversified portfolio that automatically shifts the asset mix away from equities and toward more conservative fixed-income investments as you approach the year of your retirement.

In states with community property laws,the law assumes that the surviving spouse owns everything that both partners earned during the marriage.

If you save well for your retirement,Social Security will only contribute about 40 percent of your retirement income.

All funds in a tax-sheltered retirement plan are taxed every five years.

The executor named in a will identifies assets,collects any money due,pays off debts,liquidates assets,files final income tax and estate tax returns,and with the court's permission distributes the balance of any remaining money and property to the beneficiaries.

If you were born in 1994,you will reach your full-benefit retirement age for Social Security in 2061.

You immediately benefit from putting money in a tax-sheltered retirement account because you can make the deposits with after-tax money.

Employer-sponsored retirement plans have portability,allowing you to transfer the funds to another employer or self-managed retirement account when you leave employment.

When a worker retires,other members of his or her immediate family may also be eligible to receive Social Security retirement benefits.

The Monte Carlo simulation estimates how much you need to save if your investments performed better or worse than expected.

Financial experts estimate that retirees need at least ____ percent of their preretirement income to live comfortably.

All of your employment income is subject to the Medicare tax.

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