Question 1

Lois,a 67-year-old,is receiving Social Security benefits.She received $25,000 in interest and dividends this year.Her Social Security benefits __________. ​

Accepted Answer

A) are subject to an earnings test 
B) are reduced to half because of these earnings 
C) are not reduced because of these earnings 
D) are reduced by the federal tax paid on her interest income 
A) are subject to an earnings test 
B) are reduced to half because of these earnings 
C) are not reduced because of these earnings 
D) are reduced by the federal tax paid on her interest income

Question 2

Which of the following is true of Social Security benefits?

Accepted Answer

A) Social Security benefits are retirement benefits extended only to self-employed people. 
B) A retiree can avail Social Security benefits once he or she attains age 75. 
C) Social Security benefits are available to military personnel only. 
D) Social Security benefits may be reduced if the recipient is under age 55 and still gainfully employed. 
E) Workers who elect to retire at age 62 will receive reduced Social Security benefits. 
A) Social Security benefits are retirement benefits extended only to self-employed people. 
B) A retiree can avail Social Security benefits once he or she attains age 75. 
C) Social Security benefits are available to military personnel only. 
D) Social Security benefits may be reduced if the recipient is under age 55 and still gainfully employed. 
E) Workers who elect to retire at age 62 will receive reduced Social Security benefits.

Question 3

Lillian has a defined benefit plan that promises an annual retirement benefit based on 2 percent of her final 3-year average annual salary for each year of service.At retirement,Lillian has 15 years of service and had an average salary of $65,000 over the last 3 years.What is the amount of her annual benefit?

Accepted Answer

A) $65,000 
B) $50,500 
C) $35,400 
D) $19,500 
E) $0 
A) $65,000 
B) $50,500 
C) $35,400 
D) $19,500 
E) $0

Question 4

Gordon and Lisa estimate that they will need $1,875,000 in 40 years for their retirement fund.If they can earn 8 percent annually on their funds,how much do they need to save annually? (Round off to the nearest units place.)

Accepted Answer

A) $7,238 
B) $7,987 
C) $8,103 
D) $9,234 
E) $9,875 
A) $7,238 
B) $7,987 
C) $8,103 
D) $9,234 
E) $9,875

Question 5

One of the biggest financial benefits of starting early to save for your retirement fund is related to:

Accepted Answer

A) the increased cost of living. 
B) compound interest. 
C) lower tax deductions. 
D) inflation. 
E) reduced expenses. 
A) the increased cost of living. 
B) compound interest. 
C) lower tax deductions. 
D) inflation. 
E) reduced expenses.

Question 6

In the case of a refund annuity,_____.

Accepted Answer

A) the monthly income provided by the policy varies as a function of the insurer's actual investment experience 
B) the insurance company agrees to pay a guaranteed rate of interest on the insured's money 
C) a specified monthly income is provided for a stated number of years without consideration of any life contingency 
D) if the annuitant dies,the designated beneficiary receives monthly payments until the total price of the annuity is paid back 
E) the insurance company guarantees the annuitant a stated amount of monthly income for life 
A) the monthly income provided by the policy varies as a function of the insurer's actual investment experience 
B) the insurance company agrees to pay a guaranteed rate of interest on the insured's money 
C) a specified monthly income is provided for a stated number of years without consideration of any life contingency 
D) if the annuitant dies,the designated beneficiary receives monthly payments until the total price of the annuity is paid back 
E) the insurance company guarantees the annuitant a stated amount of monthly income for life

Question 7

The employer retirement plan that is intended to promote employee productivity and allows the employer to vary the amount of annual contributions is a _____.

Accepted Answer

A) qualified defined contribution plan 
B) thrift and savings plan 
C) profit-sharing plan 
D) 401(k)plan 
E) 403(b)plan 
A) qualified defined contribution plan 
B) thrift and savings plan 
C) profit-sharing plan 
D) 401(k)plan 
E) 403(b)plan

Question 8

Retirement planning starts with:

Accepted Answer

A) determining the size of the required nest egg. 
B) considering the longevity of the retiree. 
C) defining the investment program. 
D) determining the interest on income-earning assets. 
E) the setting of retirement goals. 
A) determining the size of the required nest egg. 
B) considering the longevity of the retiree. 
C) defining the investment program. 
D) determining the interest on income-earning assets. 
E) the setting of retirement goals.

Lois,a 67-year-old,is receiving Social Security benefits.She received $25,000 in interest and dividends this year.Her Social Security benefits __________.

Which of the following is true of Social Security benefits?

Gordon and Lisa estimate that they will need $1,875,000 in 40 years for their retirement fund.If they can earn 8 percent annually on their funds,how much do they need to save annually? (Round off to the nearest units place.)

One of the biggest financial benefits of starting early to save for your retirement fund is related to:

In the case of a refund annuity,_____.

The employer retirement plan that is intended to promote employee productivity and allows the employer to vary the amount of annual contributions is a _____.

Retirement planning starts with:

Understanding the Financial Planning Process

Using Financial Statements and Budgets

Preparing Your Taxes

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Credit

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Investing in Mutual Funds, ETFS and Real Estate

Preserving Your Estate

Filters

Exam 14: Planning for Retirement

Lois,a 67-year-old,is receiving Social Security benefits.She received $25,000 in interest and dividends this year.Her Social Security benefits __________. ​

Which of the following is true of Social Security benefits?

Gordon and Lisa estimate that they will need $1,875,000 in 40 years for their retirement fund.If they can earn 8 percent annually on their funds,how much do they need to save annually? (Round off to the nearest units place.)

One of the biggest financial benefits of starting early to save for your retirement fund is related to:

In the case of a refund annuity,_____.

The employer retirement plan that is intended to promote employee productivity and allows the employer to vary the amount of annual contributions is a _____.

Retirement planning starts with:

Understanding the Financial Planning Process

Using Financial Statements and Budgets

Preparing Your Taxes

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Credit

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Investing in Mutual Funds, ETFS and Real Estate

Preserving Your Estate

Filters

Lois,a 67-year-old,is receiving Social Security benefits.She received $25,000 in interest and dividends this year.Her Social Security benefits __________.