Question 1

The amount of the minimum required distribution from an IRA at age 70½ is based on your life expectancy at the time of the distribution.

Accepted Answer

A) True 
 B)False

Question 2

Under a 401(k)plan,your employer makes nontaxable contributions to the plan for your benefit and reduces your salary by the same amounts.

Accepted Answer

A) True 
 B)False

Question 3

Before you get a reverse mortgage of any kind,consider that:

Accepted Answer

A) there are origination fees, closing costs, servicing fees, and mortgage insurance premiums 
B) interest rates may change over the life of the mortgage 
C) you are still responsible for property taxes, insurance, utilities, and maintenance expenses 
D) you may leave fewer or no assets for your heirs 
E) All of these should be considered. 
A) there are origination fees, closing costs, servicing fees, and mortgage insurance premiums 
B) interest rates may change over the life of the mortgage 
C) you are still responsible for property taxes, insurance, utilities, and maintenance expenses 
D) you may leave fewer or no assets for your heirs 
E) All of these should be considered.

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

If a rollover from a retirement fund or other IRA is not made directly to a similar employer-provided retirement plan or an IRA,there will be a mandatory federal income tax withholding equal to what percent of the taxable distribution?

Accepted Answer

A) 5 
B) 10 
C) 15 
D) 20 
E) 25 
A) 5 
B) 10 
C) 15 
D) 20 
E) 25

Question 6

To correctly divide retirement benefits during divorce,a couple needs to create a legal document called a qualified domestic relations order (QDRO).

Accepted Answer

A) True 
 B)False

Question 7

An annuity provides guaranteed income for life.

Accepted Answer

A) True 
 B)False

Question 8

Most employer pension plans are either defined-contribution or defined-benefit plans.

Accepted Answer

A) True 
 B)False

Question 9

A defined-contribution plan has an individual account for each employee; therefore,these plans are also called individual account plans.

Accepted Answer

A) True 
 B)False

Question 10

ERISA established the Pension Benefit Guaranty Corporation.

Accepted Answer

A) True 
 B)False

Question 11

Sam Waterston has been making contributions into an individual retirement account to help pay for his children to go to college.Which type of account is he most likely using?

Accepted Answer

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

Question 12

If you work after age 65,your Social Security benefit will increase by one-fourth of one percent for each month you delay retirement up until what age?

Accepted Answer

A) 67 
B) 70 
C) 75 
D) 80 
E) 85 
A) 67 
B) 70 
C) 75 
D) 80 
E) 85

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

When a lender uses your house as collateral to buy an annuity for you from a life insurance company,it is called a reverse annuity mortgage or:

Accepted Answer

A) an obverse annuity mortgage. 
B) an equity conversion. 
C) mortgage life insurance. 
D) a level-premium annuity. 
E) whole life insurance. 
A) an obverse annuity mortgage. 
B) an equity conversion. 
C) mortgage life insurance. 
D) a level-premium annuity. 
E) whole life insurance.

Question 15

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 16

A successful,happy retirement just doesn't happen; you have to plan for it.

Accepted Answer

A) True 
 B)False

Question 17

Employees who are covered under the Railroad Retirement System are also covered by Social Security.

Accepted Answer

A) True 
 B)False

Question 18

Your contribution to a Traditional IRA is fully tax deductible regardless of your earned income.

Accepted Answer

A) True 
 B)False

Question 19

Beverly Foster is planning for her retirement.She has determined that her car is worth $10,000,her home is worth $150,000,her personal belongings are worth $100,000,and her stocks and bonds are worth $300,000.She owes $50,000 on her home and $5,000 on her car.What step in the retirement planning process is Beverly 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 20

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

The amount of the minimum required distribution from an IRA at age 70½ is based on your life expectancy at the time of the distribution.

Under a 401(k)plan,your employer makes nontaxable contributions to the plan for your benefit and reduces your salary by the same amounts.

Before you get a reverse mortgage of any kind,consider that:

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

If a rollover from a retirement fund or other IRA is not made directly to a similar employer-provided retirement plan or an IRA,there will be a mandatory federal income tax withholding equal to what percent of the taxable distribution?

To correctly divide retirement benefits during divorce,a couple needs to create a legal document called a qualified domestic relations order (QDRO).

An annuity provides guaranteed income for life.

Most employer pension plans are either defined-contribution or defined-benefit plans.

A defined-contribution plan has an individual account for each employee; therefore,these plans are also called individual account plans.

ERISA established the Pension Benefit Guaranty Corporation.

Sam Waterston has been making contributions into an individual retirement account to help pay for his children to go to college.Which type of account is he most likely using?

If you work after age 65,your Social Security benefit will increase by one-fourth of one percent for each month you delay retirement up until what age?

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

When a lender uses your house as collateral to buy an annuity for you from a life insurance company,it is called a reverse annuity mortgage or:

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?

A successful,happy retirement just doesn't happen; you have to plan for it.

Employees who are covered under the Railroad Retirement System are also covered by Social Security.

Your contribution to a Traditional IRA is fully tax deductible regardless of your earned income.

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

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 Stock

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

The amount of the minimum required distribution from an IRA at age 70½ is based on your life expectancy at the time of the distribution.

Under a 401(k)plan,your employer makes nontaxable contributions to the plan for your benefit and reduces your salary by the same amounts.

Before you get a reverse mortgage of any kind,consider that:

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

If a rollover from a retirement fund or other IRA is not made directly to a similar employer-provided retirement plan or an IRA,there will be a mandatory federal income tax withholding equal to what percent of the taxable distribution?

To correctly divide retirement benefits during divorce,a couple needs to create a legal document called a qualified domestic relations order (QDRO).

An annuity provides guaranteed income for life.

Most employer pension plans are either defined-contribution or defined-benefit plans.

A defined-contribution plan has an individual account for each employee; therefore,these plans are also called individual account plans.

ERISA established the Pension Benefit Guaranty Corporation.

Sam Waterston has been making contributions into an individual retirement account to help pay for his children to go to college.Which type of account is he most likely using?

If you work after age 65,your Social Security benefit will increase by one-fourth of one percent for each month you delay retirement up until what age?

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

When a lender uses your house as collateral to buy an annuity for you from a life insurance company,it is called a reverse annuity mortgage or:

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?

A successful,happy retirement just doesn't happen; you have to plan for it.

Employees who are covered under the Railroad Retirement System are also covered by Social Security.

Your contribution to a Traditional IRA is fully tax deductible regardless of your earned income.

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

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 Stock

Investing in Bonds

Investing in Mutual Funds

Investing in Real Estate and Other Investment Alternatives

Estate Planning

Filters