Question 1

Keogh plans can be both defined-contribution and defined-benefit plans.

Accepted Answer

A) True 
 B)False

Question 2

Vesting is your right to at least a portion of the benefits you have accrued under an employer pension plan.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is considered a tax-sheltered annuity plan (TSA)?

Accepted Answer

A)  401k plan 
B)  Section 403b plan 
C)  Section 457 plan 
D)  Both Section 403b and Section 457 plans 
E)  401k, Section 403b, and Section 457 plans 
A)  401k plan 
B)  Section 403b plan 
C)  Section 457 plan 
D)  Both Section 403b and Section 457 plans 
E)  401k, Section 403b, and Section 457 plans

Question 4

Which one of the following is not a typical characteristic of a defined benefit plan?

Accepted Answer

A)  Employer contributions 
B)  Formula-based benefit 
C)  Investments managed by plan officials 
D)  Limited government-guaranteed benefit 
E)  Employee required contributions 
A)  Employer contributions 
B)  Formula-based benefit 
C)  Investments managed by plan officials 
D)  Limited government-guaranteed benefit 
E)  Employee required contributions

Question 5

What are the two most popular personal retirement plans?

Accepted Answer

A)  Keogh account and Social Security 
B)  Social Security and Roth IRA Plus 
C)  Keogh accounts and individual retirement accounts 
D)  401(k) and Social Security 
E)  403(b) and 401(k) 
A)  Keogh account and Social Security 
B)  Social Security and Roth IRA Plus 
C)  Keogh accounts and individual retirement accounts 
D)  401(k) and Social Security 
E)  403(b) and 401(k)

Question 6

As people reach retirement age, what is the most likely housing choice they would make? Assume they are moving to a new geographic area.

Accepted Answer

A)  Split-level house with two sets of stairs 
B)  100-year old house that needs lots of renovations 
C)  House that is close to the city bus line 
D)  House with 10 acres far out in the country 
E)  Rental apartment 
A)  Split-level house with two sets of stairs 
B)  100-year old house that needs lots of renovations 
C)  House that is close to the city bus line 
D)  House with 10 acres far out in the country 
E)  Rental apartment

Question 7

Karen Endicott is planning for her retirement. She knows that after she retires she will no longer need her own single family dwelling. She plans on buying a condominium in Chicago, close to the bus and train line and close to a grocery store. What step in the retirement planning process is Karen completing?

Accepted Answer

A)  Analyzing her current assets and liabilities 
B)  Estimating her spending needs 
C)  Evaluating her planned retirement income 
D)  Evaluating her retirement housing 
E)  Developing a balanced budget based on her retirement income 
A)  Analyzing her current assets and liabilities 
B)  Estimating her spending needs 
C)  Evaluating her planned retirement income 
D)  Evaluating her retirement housing 
E)  Developing a balanced budget based on her retirement income

Question 8

If you think you want to live in another city during retirement, it's a good idea to plan vacations now in areas you might enjoy later.

Accepted Answer

A) True 
 B)False

Question 9

Ben Carmichael has been making contributions into an individual retirement account for his retirement. His contributions are tax deductible as his employer does not offer a retirement plan. What type of individual retirement account does he have?

Accepted Answer

A)  Traditional IRA 
B)  Roth IRA 
C)  Spousal IRA 
D)  Coverdell Education Savings Account 
E)  401(k) 
A)  Traditional IRA 
B)  Roth IRA 
C)  Spousal IRA 
D)  Coverdell Education Savings Account 
E)  401(k)

Question 10

The full Social Security benefit for a spouse is what percent of the retired worker's full benefit?

Accepted Answer

A)  25 
B)  40 
C)  50 
D)  65 
E)  80 
A)  25 
B)  40 
C)  50 
D)  65 
E)  80

Question 11

Which one of the following is probably the best suggestion for stretching your retirement income?

Accepted Answer

A)  Skip leisure activities 
B)  Cut your food expenditures 
C)  Cancel your life and property insurance 
D)  Use your skills and time instead of your money 
E)  Get rid of your health insurance 
A)  Skip leisure activities 
B)  Cut your food expenditures 
C)  Cancel your life and property insurance 
D)  Use your skills and time instead of your money 
E)  Get rid of your health insurance

Question 12

When settling a divorce case, the division of pension benefits generally depends on the length of the marriage.

Accepted Answer

A) True 
 B)False

Question 13

It is almost certain that your pension benefits will increase to keep pace with inflation.

Accepted Answer

A) True 
 B)False

Question 14

The straight life annuity gives more income per dollar of outlay than any other type.

Accepted Answer

A) True 
 B)False

Question 15

ERISA established the Pension Benefit Guaranty Corporation (PBGC).

Accepted Answer

A) True 
 B)False

Question 16

You can get a reverse mortgage annuity if:

Accepted Answer

A)  you are willing to sell your house immediately. 
B)  you buy a new home and pay only a minimal down payment. 
C)  your mortgage is largely or completely paid off. 
D)  you owe more in monthly mortgage interest than the annuity amount. 
E)  you are willing to allow your principal mortgage balance to increase monthly. 
A)  you are willing to sell your house immediately. 
B)  you buy a new home and pay only a minimal down payment. 
C)  your mortgage is largely or completely paid off. 
D)  you owe more in monthly mortgage interest than the annuity amount. 
E)  you are willing to allow your principal mortgage balance to increase monthly.

Question 17

The Social Security office will require you to provide proof of your age.

Accepted Answer

A) True 
 B)False

Question 18

A SEP-IRA plan is simply an individual retirement account funded by the employer.

Accepted Answer

A) True 
 B)False

Question 19

Because of their actuarial aspects, defined-benefit plans tend to be more-complicated and more expensive to administer than defined-contribution plans.

Accepted Answer

A) True 
 B)False

Question 20

Your assets include everything you own that has value.

Accepted Answer

A) True 
 B)False

Keogh plans can be both defined-contribution and defined-benefit plans.

Vesting is your right to at least a portion of the benefits you have accrued under an employer pension plan.

Which of the following is considered a tax-sheltered annuity plan (TSA)?

Which one of the following is not a typical characteristic of a defined benefit plan?

What are the two most popular personal retirement plans?

As people reach retirement age, what is the most likely housing choice they would make? Assume they are moving to a new geographic area.

If you think you want to live in another city during retirement, it's a good idea to plan vacations now in areas you might enjoy later.

Ben Carmichael has been making contributions into an individual retirement account for his retirement. His contributions are tax deductible as his employer does not offer a retirement plan. What type of individual retirement account does he have?

The full Social Security benefit for a spouse is what percent of the retired worker's full benefit?

Which one of the following is probably the best suggestion for stretching your retirement income?

When settling a divorce case, the division of pension benefits generally depends on the length of the marriage.

It is almost certain that your pension benefits will increase to keep pace with inflation.

The straight life annuity gives more income per dollar of outlay than any other type.

ERISA established the Pension Benefit Guaranty Corporation (PBGC).

You can get a reverse mortgage annuity if:

The Social Security office will require you to provide proof of your age.

A SEP-IRA plan is simply an individual retirement account funded by the employer.

Because of their actuarial aspects, defined-benefit plans tend to be more-complicated and more expensive to administer than defined-contribution plans.

Your assets include everything you own that has value.

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

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Exam 18: Starting Early: Retirement Planning

Keogh plans can be both defined-contribution and defined-benefit plans.

Vesting is your right to at least a portion of the benefits you have accrued under an employer pension plan.

Which of the following is considered a tax-sheltered annuity plan (TSA)?

Which one of the following is not a typical characteristic of a defined benefit plan?

What are the two most popular personal retirement plans?

As people reach retirement age, what is the most likely housing choice they would make? Assume they are moving to a new geographic area.

If you think you want to live in another city during retirement, it's a good idea to plan vacations now in areas you might enjoy later.

Ben Carmichael has been making contributions into an individual retirement account for his retirement. His contributions are tax deductible as his employer does not offer a retirement plan. What type of individual retirement account does he have?

The full Social Security benefit for a spouse is what percent of the retired worker's full benefit?

Which one of the following is probably the best suggestion for stretching your retirement income?

When settling a divorce case, the division of pension benefits generally depends on the length of the marriage.

It is almost certain that your pension benefits will increase to keep pace with inflation.

The straight life annuity gives more income per dollar of outlay than any other type.

ERISA established the Pension Benefit Guaranty Corporation (PBGC).

You can get a reverse mortgage annuity if:

The Social Security office will require you to provide proof of your age.

A SEP-IRA plan is simply an individual retirement account funded by the employer.

Because of their actuarial aspects, defined-benefit plans tend to be more-complicated and more expensive to administer than defined-contribution plans.

Your assets include everything you own that has value.

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