Question 1

Which statement is correct regarding retirement living expenses?

Accepted Answer

A)  It is impossible to estimate your spending needs. 
B)  Your spending patterns will probably not change. 
C)  You'll use a smaller amount of money for food, housing, and medical care. 
D)  The exact amount of money you'll need is impossible to predict. 
E)  Work-related expenses, such as driving back and forth to work, tend to be higher during retirement. 
A)  It is impossible to estimate your spending needs. 
B)  Your spending patterns will probably not change. 
C)  You'll use a smaller amount of money for food, housing, and medical care. 
D)  The exact amount of money you'll need is impossible to predict. 
E)  Work-related expenses, such as driving back and forth to work, tend to be higher during retirement.

Question 2

Jasmine Smith owns a condo worth $240,000, a car valued at $25,000, and miscellaneous assets worth $7,500. She owes $185,000 on the condo and $15,000 on the car and has no other debts. Her retirement account, in which she is fully vested, contains $27,500 in mutual funds. She is insured with a $500,000 term life insurance policy. What is her net worth?

Accepted Answer

A)  $92,500 
B)  $100,000 
C)  $115,000 
D)  $592,500 
E)  $600,000 
A)  $92,500 
B)  $100,000 
C)  $115,000 
D)  $592,500 
E)  $600,000

Question 3

Your contribution to a Traditional IRA is fully tax deductible regardless of your earned income.

Accepted Answer

A) True 
 B)False

Question 4

With a fixed-dollar annuity, the money you pay is invested in common stocks or other equities.

Accepted Answer

A) True 
 B)False

Question 5

Saving money doesn't come naturally to many young people.

Accepted Answer

A) True 
 B)False

Question 6

Describe some of the most common retirement misconceptions, and explain what you should do if you hold to any of those misconceptions.

Accepted Answer

Some of the most common retirement misco

Question 7

A Keogh plan is also called a self-employed retirement plan.

Accepted Answer

A) True 
 B)False

Question 8

Explain the difference between a defined-contribution and defined benefit plan.

Accepted Answer

A defined-contribution plan has an indiv

Question 9

You can depend on your employer's health insurance plan and Medicare to pay all your medical expenses when you retire.

Accepted Answer

A) True 
 B)False

Question 10

Inflation increases the purchasing power of your retirement savings.

Accepted Answer

A) True 
 B)False

Question 11

A three percent rate of inflation will cause prices to double every 24 years.

Accepted Answer

A) True 
 B)False

Question 12

The first step in stretching your retirement income is to make sure you are receiving all the income to which you are entitled.

Accepted Answer

A) True 
 B)False

Question 13

Contributions to a SEP-IRA, which may vary from year to year, are tax deductible and earnings accumulate on a tax-deferred basis.

Accepted Answer

A) True 
 B)False

Question 14

For the average individual, which one of the following statements is most likely correct regarding retirement?

Accepted Answer

A)  My costs of daily living will decrease significantly once I retire. 
B)  I can only expect to live about ten years in retirement, so I don't need to save all that much money. 
C)  Once I retire, all my medical bills will be paid by Medicare. 
D)  My employer's pension plan will provide sufficient income to meet all my retirement needs. 
E)  I need to save whatever I can, even if it's a small amount, to help cover my retirement costs. 
A)  My costs of daily living will decrease significantly once I retire. 
B)  I can only expect to live about ten years in retirement, so I don't need to save all that much money. 
C)  Once I retire, all my medical bills will be paid by Medicare. 
D)  My employer's pension plan will provide sufficient income to meet all my retirement needs. 
E)  I need to save whatever I can, even if it's a small amount, to help cover my retirement costs.

Question 15

Immediate annuities are generally purchased by people of retirement age.

Accepted Answer

A) True 
 B)False

Question 16

According to the Social Security Administration, the Social Security program is financially sound.

Accepted Answer

A) True 
 B)False

Question 17

You can keep money in most retirement plans indefinitely.

Accepted Answer

A) True 
 B)False

Question 18

If you work after age 65, your Social Security benefit will increase by one-fourth of one percent for each month you delay retirement up until what age?

Accepted Answer

A)  67 
B)  70 
C)  75 
D)  80 
E)  85 
A)  67 
B)  70 
C)  75 
D)  80 
E)  85

Question 19

A joint-and-survivor annuity pays its installments until the death of the last designated survivor.

Accepted Answer

A) True 
 B)False

Question 20

The full Social Security benefit for a spouse is one-half of the retired worker's full benefit.

Accepted Answer

A) True 
 B)False

Which statement is correct regarding retirement living expenses?

Your contribution to a Traditional IRA is fully tax deductible regardless of your earned income.

With a fixed-dollar annuity, the money you pay is invested in common stocks or other equities.

Saving money doesn't come naturally to many young people.

Describe some of the most common retirement misconceptions, and explain what you should do if you hold to any of those misconceptions.

A Keogh plan is also called a self-employed retirement plan.

Explain the difference between a defined-contribution and defined benefit plan.

You can depend on your employer's health insurance plan and Medicare to pay all your medical expenses when you retire.

Inflation increases the purchasing power of your retirement savings.

A three percent rate of inflation will cause prices to double every 24 years.

The first step in stretching your retirement income is to make sure you are receiving all the income to which you are entitled.

Contributions to a SEP-IRA, which may vary from year to year, are tax deductible and earnings accumulate on a tax-deferred basis.

For the average individual, which one of the following statements is most likely correct regarding retirement?

Immediate annuities are generally purchased by people of retirement age.

According to the Social Security Administration, the Social Security program is financially sound.

You can keep money in most retirement plans indefinitely.

If you work after age 65, your Social Security benefit will increase by one-fourth of one percent for each month you delay retirement up until what age?

A joint-and-survivor annuity pays its installments until the death of the last designated survivor.

The full Social Security benefit for a spouse is one-half of the retired worker's full benefit.

Personal Finance Basics and the Time Value of Money

Financial Aspects of Career Planning

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

Financial Services: Savings Plans and Payment Accounts

Introduction to Consumer Credit

Choosing a Source of Credit: The Costs of Credit Alternatives

Consumer Purchasing Strategies and Legal Protection

The Housing Decision: Factors and Finances

Property and Motor Vehicle Insurance

Health, Disability, and Long-Term Care Insurance

Life Insurance

Investing Fundamentals

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Investing in Real Estate and Other Investment Alternatives

Estate Planning

Filters

Exam 18: Starting Early: Retirement Planning

Which statement is correct regarding retirement living expenses?

Your contribution to a Traditional IRA is fully tax deductible regardless of your earned income.

With a fixed-dollar annuity, the money you pay is invested in common stocks or other equities.

Saving money doesn't come naturally to many young people.

Describe some of the most common retirement misconceptions, and explain what you should do if you hold to any of those misconceptions.

A Keogh plan is also called a self-employed retirement plan.

Explain the difference between a defined-contribution and defined benefit plan.

You can depend on your employer's health insurance plan and Medicare to pay all your medical expenses when you retire.

Inflation increases the purchasing power of your retirement savings.

A three percent rate of inflation will cause prices to double every 24 years.

The first step in stretching your retirement income is to make sure you are receiving all the income to which you are entitled.

Contributions to a SEP-IRA, which may vary from year to year, are tax deductible and earnings accumulate on a tax-deferred basis.

For the average individual, which one of the following statements is most likely correct regarding retirement?

Immediate annuities are generally purchased by people of retirement age.

According to the Social Security Administration, the Social Security program is financially sound.

You can keep money in most retirement plans indefinitely.

If you work after age 65, your Social Security benefit will increase by one-fourth of one percent for each month you delay retirement up until what age?

A joint-and-survivor annuity pays its installments until the death of the last designated survivor.

The full Social Security benefit for a spouse is one-half of the retired worker's full benefit.

Personal Finance Basics and the Time Value of Money

Financial Aspects of Career Planning

Money Management Strategy: Financial Statements and Budgeting

Planning Your Tax Strategy

Financial Services: Savings Plans and Payment Accounts

Introduction to Consumer Credit

Choosing a Source of Credit: The Costs of Credit Alternatives

Consumer Purchasing Strategies and Legal Protection

The Housing Decision: Factors and Finances

Property and Motor Vehicle Insurance

Health, Disability, and Long-Term Care Insurance

Life Insurance

Investing Fundamentals

Investing in Stocks

Investing in Bonds

Investing in Mutual Funds

Investing in Real Estate and Other Investment Alternatives

Estate Planning

Filters