Question 1

What are the key steps in retirement planning?

Accepted Answer

The first step is to analyze your assets

Question 2

The two most popular personal retirement plans are individual retirement accounts (IRAs) and Keogh accounts.

Accepted Answer

A) True 
 B)False

Question 3

You can only buy an annuity by making periodic payments.

Accepted Answer

A) True 
 B)False

Question 4

Profit-sharing plans or 401(k) plans are examples of defined-contribution plans.

Accepted Answer

A) True 
 B)False

Question 5

Because of longer life expectancies, the full retirement age is greater than age 65 for younger individuals.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is a feature of an Education IRA (or Coverdell Education Savings Account)?

Accepted Answer

A)  Tax-deferred interest and earnings 
B)  10% early withdrawal penalty waiver when money is used for higher-education 
C)  Annual limit on individual contributions 
D)  Non-deductible contributions 
E)  All of these are features of an Education IRA. 
A)  Tax-deferred interest and earnings 
B)  10% early withdrawal penalty waiver when money is used for higher-education 
C)  Annual limit on individual contributions 
D)  Non-deductible contributions 
E)  All of these are features of an Education IRA.

Question 7

During retirement, as long as you do not earn more than the annually exempt amount, your Social Security payments will not be affected.

Accepted Answer

A) True 
 B)False

Question 8

During retirement, you should increase your premium payments by increasing the face value of your life insurance.

Accepted Answer

A) True 
 B)False

Question 9

Social Security benefits do not increase even if the cost of living increased during the preceding year.

Accepted Answer

A) True 
 B)False

Question 10

In a marriage that lasts more than 15 years, there's generally a ____________ split of the marital assets.

Accepted Answer

A)  10-90 
B)  30-70 
C)  40-60 
D)  50-50 
E)  60-40 
A)  10-90 
B)  30-70 
C)  40-60 
D)  50-50 
E)  60-40

Question 11

The contribution Billy Freniere's employer makes to his retirement plan depends on the profits of the company. What type of retirement plan does Billy have?

Accepted Answer

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

Question 12

Which employer retirement plan specifies the benefits promised to the employee at the normal retirement age?

Accepted Answer

A)  Defined-contribution plan 
B)  SEP IRA 
C)  401(k) 
D)  Roth IRA 
E)  Defined-benefit plan 
A)  Defined-contribution plan 
B)  SEP IRA 
C)  401(k) 
D)  Roth IRA 
E)  Defined-benefit plan

Question 13

Why is financial planning for retirement vitally important?

Accepted Answer

A)  You can expect to live in retirement for many years. 
B)  Social Security and your private pension may be insufficient to cover the cost of living. 
C)  Inflation may diminish the purchasing power of your retirement savings. 
D)  Knowing that you are financially prepared for retirement gives you peace of mind. 
E)  All of the listed factors are vitally important. 
A)  You can expect to live in retirement for many years. 
B)  Social Security and your private pension may be insufficient to cover the cost of living. 
C)  Inflation may diminish the purchasing power of your retirement savings. 
D)  Knowing that you are financially prepared for retirement gives you peace of mind. 
E)  All of the listed factors are vitally important.

Question 14

The exact amount of money you will need in retirement can be predicted accurately.

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A)  Clothing expenses 
B)  Insurance expenses 
C)  Medical expenses 
D)  Expenses for leisure activities 
E)  Housing expenses 
A)  Clothing expenses 
B)  Insurance expenses 
C)  Medical expenses 
D)  Expenses for leisure activities 
E)  Housing expenses

Question 16

Which statement is most likely correct about retirement planning?

Accepted Answer

A)  Social Security will cover most of your expenses. 
B)  Your employer's pension combined with your Social Security will cover your retirement expenses. 
C)  Most retirees don't need to worry about inflation. 
D)  Your pension may remain constant even in an inflationary environment. 
E)  Your living costs will remain constant once you retire. 
A)  Social Security will cover most of your expenses. 
B)  Your employer's pension combined with your Social Security will cover your retirement expenses. 
C)  Most retirees don't need to worry about inflation. 
D)  Your pension may remain constant even in an inflationary environment. 
E)  Your living costs will remain constant once you retire.

Question 17

An annuity is a contract from an insurance company that can provide an income for life.

Accepted Answer

A) True 
 B)False

Question 18

Up to 85 percent of your Social Security benefits may be subject to federal income tax.

Accepted Answer

A) True 
 B)False

Question 19

The people who are in the best position to save are:

Accepted Answer

A)  teenagers. 
B)  young adults in their 20s. 
C)  people in their 30s. 
D)  middle-aged. 
E)  elderly. 
A)  teenagers. 
B)  young adults in their 20s. 
C)  people in their 30s. 
D)  middle-aged. 
E)  elderly.

Question 20

How can retirees avoid housing traps?

Accepted Answer

Retirees can avoid housing traps by writ

What are the key steps in retirement planning?

The two most popular personal retirement plans are individual retirement accounts (IRAs) and Keogh accounts.

You can only buy an annuity by making periodic payments.

Profit-sharing plans or 401(k) plans are examples of defined-contribution plans.

Because of longer life expectancies, the full retirement age is greater than age 65 for younger individuals.

Which of the following is a feature of an Education IRA (or Coverdell Education Savings Account)?

During retirement, as long as you do not earn more than the annually exempt amount, your Social Security payments will not be affected.

During retirement, you should increase your premium payments by increasing the face value of your life insurance.

Social Security benefits do not increase even if the cost of living increased during the preceding year.

In a marriage that lasts more than 15 years, there's generally a ____________ split of the marital assets.

The contribution Billy Freniere's employer makes to his retirement plan depends on the profits of the company. What type of retirement plan does Billy have?

Which employer retirement plan specifies the benefits promised to the employee at the normal retirement age?

Why is financial planning for retirement vitally important?

The exact amount of money you will need in retirement can be predicted accurately.

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

Which statement is most likely correct about retirement planning?

An annuity is a contract from an insurance company that can provide an income for life.

Up to 85 percent of your Social Security benefits may be subject to federal income tax.

The people who are in the best position to save are:

How can retirees avoid housing traps?

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

What are the key steps in retirement planning?

The two most popular personal retirement plans are individual retirement accounts (IRAs) and Keogh accounts.

You can only buy an annuity by making periodic payments.

Profit-sharing plans or 401(k) plans are examples of defined-contribution plans.

Because of longer life expectancies, the full retirement age is greater than age 65 for younger individuals.

Which of the following is a feature of an Education IRA (or Coverdell Education Savings Account)?

During retirement, as long as you do not earn more than the annually exempt amount, your Social Security payments will not be affected.

During retirement, you should increase your premium payments by increasing the face value of your life insurance.

Social Security benefits do not increase even if the cost of living increased during the preceding year.

In a marriage that lasts more than 15 years, there's generally a ____________ split of the marital assets.

The contribution Billy Freniere's employer makes to his retirement plan depends on the profits of the company. What type of retirement plan does Billy have?

Which employer retirement plan specifies the benefits promised to the employee at the normal retirement age?

Why is financial planning for retirement vitally important?

The exact amount of money you will need in retirement can be predicted accurately.

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

Which statement is most likely correct about retirement planning?

An annuity is a contract from an insurance company that can provide an income for life.

Up to 85 percent of your Social Security benefits may be subject to federal income tax.

The people who are in the best position to save are:

How can retirees avoid housing traps?

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