Question 1

In a Roth IRA, contributions are not tax-deductible, but earnings can accumulate tax free.

Accepted Answer

A) True 
 B)False

Question 2

People born after 1928 need at least how many quarters of coverage to qualify for Social Security benefits?

Accepted Answer

A)  20 
B)  40 
C)  60 
D)  80 
E)  100 
A)  20 
B)  40 
C)  60 
D)  80 
E)  100

Question 3

Jeremiah Brown has been making contributions into an individual retirement account for his retirement. His contributions are not tax deductible but his earnings accumulate tax free. 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 4

The current value of your life insurance and pensions are included in your assets.

Accepted Answer

A) True 
 B)False

Question 5

Some experts suggest starting retirement planning while you are in school.

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

A)  I should wait until at least age 40 to start saving for retirement. 
B)  My pension benefits will increase to keep pace with inflation. 
C)  I should update my retirement plan periodically. 
D)  My employer's health insurance plan will cover my medical expenses. 
E)  Social Security will cover my medical expenses. 
A)  I should wait until at least age 40 to start saving for retirement. 
B)  My pension benefits will increase to keep pace with inflation. 
C)  I should update my retirement plan periodically. 
D)  My employer's health insurance plan will cover my medical expenses. 
E)  Social Security will cover my medical expenses.

Question 7

Which of the following is a tip from retirement specialists on how to uncover hidden taxes and other costs of a retirement area?

Accepted Answer

A)  Contact the local Chamber of Commerce to get an economic profile. 
B)  Contact the state's tax department to find out state, sales, and inheritance taxes. 
C)  Call a local CPA to find out which taxes are rising. 
D)  Rent for a while instead of buying immediately. 
E)  Retirement specialists recommend all of these actions to uncover hidden taxes and costs. 
A)  Contact the local Chamber of Commerce to get an economic profile. 
B)  Contact the state's tax department to find out state, sales, and inheritance taxes. 
C)  Call a local CPA to find out which taxes are rising. 
D)  Rent for a while instead of buying immediately. 
E)  Retirement specialists recommend all of these actions to uncover hidden taxes and costs.

Question 8

Whether or not you are covered by a pension plan, you can still make nondeductible IRA contributions.

Accepted Answer

A) True 
 B)False

Question 9

You can depend on Social Security and your company pension to pay for your basic living expenses.

Accepted Answer

A) True 
 B)False

Question 10

Annuity payments may either be a fixed or a variable amount.

Accepted Answer

A) True 
 B)False

Question 11

Social Security was originally intended to provide 100 percent of retirement income.

Accepted Answer

A) True 
 B)False

Question 12

Bruce Willis has been making contributions into an individual retirement account on behalf of his nonworking wife. What type of individual retirement account is this?

Accepted Answer

A)  Traditional IRA 
B)  Roth IRA 
C)  Spousal IRA 
D)  Coverdell Education Savings Account 
E)  SEP-IRA 
A)  Traditional IRA 
B)  Roth IRA 
C)  Spousal IRA 
D)  Coverdell Education Savings Account 
E)  SEP-IRA

Question 13

Although medical expenses vary from person to person, they tend to decrease with age.

Accepted Answer

A) True 
 B)False

Question 14

When should you apply for Social Security?

Accepted Answer

A)  3 months before you retire 
B)  1 year before you retire 
C)  1 year after you retire 
D)  10 years before you retire 
E)  On the day you retire 
A)  3 months before you retire 
B)  1 year before you retire 
C)  1 year after you retire 
D)  10 years before you retire 
E)  On the day you retire

Question 15

With a defined-contribution plan, the plan document specifies the benefits promised to the employee at the normal retirement age.

Accepted Answer

A) True 
 B)False

In a Roth IRA, contributions are not tax-deductible, but earnings can accumulate tax free.

People born after 1928 need at least how many quarters of coverage to qualify for Social Security benefits?

Jeremiah Brown has been making contributions into an individual retirement account for his retirement. His contributions are not tax deductible but his earnings accumulate tax free. What type of individual retirement account does he have?

The current value of your life insurance and pensions are included in your assets.

Some experts suggest starting retirement planning while you are in school.

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

Which of the following is a tip from retirement specialists on how to uncover hidden taxes and other costs of a retirement area?

Whether or not you are covered by a pension plan, you can still make nondeductible IRA contributions.

You can depend on Social Security and your company pension to pay for your basic living expenses.

Annuity payments may either be a fixed or a variable amount.

Social Security was originally intended to provide 100 percent of retirement income.

Bruce Willis has been making contributions into an individual retirement account on behalf of his nonworking wife. What type of individual retirement account is this?

Although medical expenses vary from person to person, they tend to decrease with age.

When should you apply for Social Security?

With a defined-contribution plan, the plan document specifies the benefits promised to the employee at the normal retirement age.

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

In a Roth IRA, contributions are not tax-deductible, but earnings can accumulate tax free.

People born after 1928 need at least how many quarters of coverage to qualify for Social Security benefits?

Jeremiah Brown has been making contributions into an individual retirement account for his retirement. His contributions are not tax deductible but his earnings accumulate tax free. What type of individual retirement account does he have?

The current value of your life insurance and pensions are included in your assets.

Some experts suggest starting retirement planning while you are in school.

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

Which of the following is a tip from retirement specialists on how to uncover hidden taxes and other costs of a retirement area?

Whether or not you are covered by a pension plan, you can still make nondeductible IRA contributions.

You can depend on Social Security and your company pension to pay for your basic living expenses.

Annuity payments may either be a fixed or a variable amount.

Social Security was originally intended to provide 100 percent of retirement income.

Bruce Willis has been making contributions into an individual retirement account on behalf of his nonworking wife. What type of individual retirement account is this?

Although medical expenses vary from person to person, they tend to decrease with age.

When should you apply for Social Security?

With a defined-contribution plan, the plan document specifies the benefits promised to the employee at the normal retirement age.

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