Question 1

Over the last two decades, the defined-benefit plan has continued to grow rapidly while the number of defined-contribution plans has generally dropped.

Accepted Answer

A) True 
 B)False

Question 2

What percent of Americans ages 65 to 74 are still in the workforce?

Accepted Answer

A)  20 
B)  38 
C)  41 
D)  58 
E)  67 
A)  20 
B)  38 
C)  41 
D)  58 
E)  67

Question 3

Your Social Security benefits may be reduced if you earn above a certain amount a year, depending on your age and the amount you earn.

Accepted Answer

A) True 
 B)False

Question 4

To offset inflation, your retirement assets must earn enough to keep up with, and even exceed, the rate of inflation.

Accepted Answer

A) True 
 B)False

Question 5

Generally, the current value of your jewelry is not included in your assets.

Accepted Answer

A) True 
 B)False

Question 6

Possible sources of income for many retirees include:

Accepted Answer

A)  Social Security. 
B)  other public pension plans. 
C)  employer pension plans. 
D)  personal retirement plans and annuities. 
E)  All of these are possible sources of income for retirees. 
A)  Social Security. 
B)  other public pension plans. 
C)  employer pension plans. 
D)  personal retirement plans and annuities. 
E)  All of these are possible sources of income for retirees.

Question 7

What happens to your Social Security income if you retire early?

Accepted Answer

A)  There is a temporary reduction of 5/9 of one percent for each month that you retire early. 
B)  There is a permanent reduction of 5/9 of one percent for each month that you retire early. 
C)  There is a temporary reduction of one percent for each year that you retire early. 
D)  There is a permanent reduction of one percent for each year that you retire early. 
E)  There is no impact on your Social Security income if you retire early. 
A)  There is a temporary reduction of 5/9 of one percent for each month that you retire early. 
B)  There is a permanent reduction of 5/9 of one percent for each month that you retire early. 
C)  There is a temporary reduction of one percent for each year that you retire early. 
D)  There is a permanent reduction of one percent for each year that you retire early. 
E)  There is no impact on your Social Security income if you retire early.

Question 8

Which of the following is a true statement about retirement planning?

Accepted Answer

A)  You can expect to spend about 16 to 30 years in retirement. 
B)  It's never too early to begin planning for retirement. 
C)  You should not let your 45th birthday roll by without a comprehensive retirement plan. 
D)  Retirement planning has both emotional and financial components. 
E)  All of these statements are true. 
A)  You can expect to spend about 16 to 30 years in retirement. 
B)  It's never too early to begin planning for retirement. 
C)  You should not let your 45th birthday roll by without a comprehensive retirement plan. 
D)  Retirement planning has both emotional and financial components. 
E)  All of these statements are true.

Question 9

Sarah Logan is a professor at a public university. Her employer makes nontaxable contributions to a plan in her name and reduces her salary by the same amount. What type of retirement plan does Sarah have?

Accepted Answer

A)  Money-purchase pension plan 
B)  Stock bonus plan 
C)  Profit-sharing plan 
D)  Defined benefit plan 
E)  403(b) plan 
A)  Money-purchase pension plan 
B)  Stock bonus plan 
C)  Profit-sharing plan 
D)  Defined benefit plan 
E)  403(b) plan

Question 10

It is vital to engage in basic retirement planning activities throughout your working years.

Accepted Answer

A) True 
 B)False

Question 11

What types of expenses might increase during retirement?

Accepted Answer

Medical expenses and

Question 12

If you are a government employee, you may have a Section 457 plan.

Accepted Answer

A) True 
 B)False

Question 13

If a marriage lasted more than 15 years, the marital assets are generally split 50-50 if the couple divorces.

Accepted Answer

A) True 
 B)False

Question 14

Your first step in retirement planning is to analyze your current assets and liabilities.

Accepted Answer

A) True 
 B)False

Question 15

The rate of return on annuities is rarely pegged to market rates.

Accepted Answer

A) True 
 B)False

Question 16

All earnings in a tax-sheltered annuity grow without current federal taxation.

Accepted Answer

A) True 
 B)False

Question 17

Which one of the following expenditures for retirees is most likely to increase?

Accepted Answer

A)  Health care 
B)  Federal income taxes 
C)  Clothing expenses 
D)  Work-related expenses 
E)  State income taxes 
A)  Health care 
B)  Federal income taxes 
C)  Clothing expenses 
D)  Work-related expenses 
E)  State income taxes

Question 18

Why is retirement planning important?

Accepted Answer

Retirement planning is important because

Question 19

The amount of the minimum required distribution from a 401(k) at age 70½ is based on your life expectancy at the time of the distribution.

Accepted Answer

A) True 
 B)False

Question 20

Your federal income taxes will probably be lower during the retirement years.

Accepted Answer

A) True 
 B)False

Over the last two decades, the defined-benefit plan has continued to grow rapidly while the number of defined-contribution plans has generally dropped.

What percent of Americans ages 65 to 74 are still in the workforce?

Your Social Security benefits may be reduced if you earn above a certain amount a year, depending on your age and the amount you earn.

To offset inflation, your retirement assets must earn enough to keep up with, and even exceed, the rate of inflation.

Generally, the current value of your jewelry is not included in your assets.

Possible sources of income for many retirees include:

What happens to your Social Security income if you retire early?

Which of the following is a true statement about retirement planning?

Sarah Logan is a professor at a public university. Her employer makes nontaxable contributions to a plan in her name and reduces her salary by the same amount. What type of retirement plan does Sarah have?

It is vital to engage in basic retirement planning activities throughout your working years.

What types of expenses might increase during retirement?

If you are a government employee, you may have a Section 457 plan.

If a marriage lasted more than 15 years, the marital assets are generally split 50-50 if the couple divorces.

Your first step in retirement planning is to analyze your current assets and liabilities.

The rate of return on annuities is rarely pegged to market rates.

All earnings in a tax-sheltered annuity grow without current federal taxation.

Which one of the following expenditures for retirees is most likely to increase?

Why is retirement planning important?

The amount of the minimum required distribution from a 401(k) at age 70½ is based on your life expectancy at the time of the distribution.

Your federal income taxes will probably be lower during the retirement years.

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

Over the last two decades, the defined-benefit plan has continued to grow rapidly while the number of defined-contribution plans has generally dropped.

What percent of Americans ages 65 to 74 are still in the workforce?

Your Social Security benefits may be reduced if you earn above a certain amount a year, depending on your age and the amount you earn.

To offset inflation, your retirement assets must earn enough to keep up with, and even exceed, the rate of inflation.

Generally, the current value of your jewelry is not included in your assets.

Possible sources of income for many retirees include:

What happens to your Social Security income if you retire early?

Which of the following is a true statement about retirement planning?

Sarah Logan is a professor at a public university. Her employer makes nontaxable contributions to a plan in her name and reduces her salary by the same amount. What type of retirement plan does Sarah have?

It is vital to engage in basic retirement planning activities throughout your working years.

What types of expenses might increase during retirement?

If you are a government employee, you may have a Section 457 plan.

If a marriage lasted more than 15 years, the marital assets are generally split 50-50 if the couple divorces.

Your first step in retirement planning is to analyze your current assets and liabilities.

The rate of return on annuities is rarely pegged to market rates.

All earnings in a tax-sheltered annuity grow without current federal taxation.

Which one of the following expenditures for retirees is most likely to increase?

Why is retirement planning important?

The amount of the minimum required distribution from a 401(k) at age 70½ is based on your life expectancy at the time of the distribution.

Your federal income taxes will probably be lower during the retirement years.

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