Question 1

Which of the following is typically a characteristic of a defined contribution plan?

Accepted Answer

A) Employer promises a retirement benefit 
B) No employee contributions 
C) No federal guarantee of benefits 
D) Retirement benefit computed based on an age, wage, and years of service formula 
E) Account balance not transferable to an IRA 
A) Employer promises a retirement benefit 
B) No employee contributions 
C) No federal guarantee of benefits 
D) Retirement benefit computed based on an age, wage, and years of service formula 
E) Account balance not transferable to an IRA

Question 2

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 3

Jasmine Smith owes $185,000 on her condo and $15,000 on her car and has no other debts.Her net worth is $122,000.What are her total assets?

Accepted Answer

A) $78,000 
B) $122,000 
C) $185,000 
D) $200,000 
E) $322,000 
A) $78,000 
B) $122,000 
C) $185,000 
D) $200,000 
E) $322,000

Question 4

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

Accepted Answer

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

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

Although the full retirement age is rising,you should still apply for Medicare benefits three months before your 65th birthday.

Accepted Answer

A) True 
 B)False

Question 7

The shift to defined-contribution plans has forced employees to take more responsibility for their retirement.

Accepted Answer

A) True 
 B)False

Question 8

Saving money doesn't come naturally to many young people.

Accepted Answer

A) True 
 B)False

Question 9

The Social Security Administration provides a history of your earnings and an estimate of your future monthly benefits online.

Accepted Answer

A) True 
 B)False

Question 10

The rate of return on annuities is rarely pegged to market rates.

Accepted Answer

A) True 
 B)False

Question 11

What types of expenses may be lowered or eliminated during retirement?

Accepted Answer

Work-related expenses,clothing expenses,

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

With a fixed-dollar annuity,the money you pay is invested in common stocks or other equities.

Accepted Answer

A) True 
 B)False

Question 14

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 15

For the average individual,which one of the following statements is most likely correct regarding retirement?

Accepted Answer

A) My costs of daily living will decrease significantly once I retire. 
B) I can only expect to live about ten years in retirement, so I don't need to save all that much money. 
C) Once I retire, all my medical bills will be paid by Medicare. 
D) My employer's pension plan will provide sufficient income to meet all my retirement needs. 
E) I need to save whatever I can, even if it's a little bit, to help cover my retirement costs. 
A) My costs of daily living will decrease significantly once I retire. 
B) I can only expect to live about ten years in retirement, so I don't need to save all that much money. 
C) Once I retire, all my medical bills will be paid by Medicare. 
D) My employer's pension plan will provide sufficient income to meet all my retirement needs. 
E) I need to save whatever I can, even if it's a little bit, to help cover my retirement costs.

Question 16

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) Gifts and contributions 
A) Clothing expenses 
B) Insurance expenses 
C) Medical expenses 
D) Expenses for leisure activities 
E) Gifts and contributions

Question 17

The biggest benefit of an IRA lies in its tax-deferred earnings growth; the longer the money accumulates tax deferred,the bigger the benefit.

Accepted Answer

A) True 
 B)False

Question 18

According to the Securities and Exchange Commission,one of the easiest ways to boost your retirement savings is:

Accepted Answer

A) apply for social security 
B) save by regular, automatic deductions from your paycheck 
C) move to less expensive housing 
D) rent out a room in your house 
E) begin saving a lot when you reach age 45 
A) apply for social security 
B) save by regular, automatic deductions from your paycheck 
C) move to less expensive housing 
D) rent out a room in your house 
E) begin saving a lot when you reach age 45

Question 19

Considering compounding,for every 10 years you delay before starting retirement,you will need to save _____ times as much each month to catch up.

Accepted Answer

A) ten 
B) nine 
C) six 
D) five 
E) three 
A) ten 
B) nine 
C) six 
D) five 
E) three

Question 20

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

Accepted Answer

A) True 
 B)False

Which of the following is typically a characteristic of a defined contribution plan?

Jasmine Smith owes $185,000 on her condo and $15,000 on her car and has no other debts.Her net worth is $122,000.What are her total assets?

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

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

Although the full retirement age is rising,you should still apply for Medicare benefits three months before your 65^th birthday.

The shift to defined-contribution plans has forced employees to take more responsibility for their retirement.

Saving money doesn't come naturally to many young people.

The Social Security Administration provides a history of your earnings and an estimate of your future monthly benefits online.

The rate of return on annuities is rarely pegged to market rates.

What types of expenses may be lowered or eliminated during retirement?

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

With a fixed-dollar annuity,the money you pay is invested in common stocks or other equities.

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.

For the average individual,which one of the following statements is most likely correct regarding retirement?

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

The biggest benefit of an IRA lies in its tax-deferred earnings growth; the longer the money accumulates tax deferred,the bigger the benefit.

According to the Securities and Exchange Commission,one of the easiest ways to boost your retirement savings is:

Considering compounding,for every 10 years you delay before starting retirement,you will need to save _____ times as much each month to catch up.

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

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

Exam 18: Starting Early: Retirement Planning

Which of the following is typically a characteristic of a defined contribution plan?

Jasmine Smith owes $185,000 on her condo and $15,000 on her car and has no other debts.Her net worth is $122,000.What are her total assets?

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

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

Although the full retirement age is rising,you should still apply for Medicare benefits three months before your 65th birthday.

The shift to defined-contribution plans has forced employees to take more responsibility for their retirement.

Saving money doesn't come naturally to many young people.

The Social Security Administration provides a history of your earnings and an estimate of your future monthly benefits online.

The rate of return on annuities is rarely pegged to market rates.

What types of expenses may be lowered or eliminated during retirement?

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

With a fixed-dollar annuity,the money you pay is invested in common stocks or other equities.

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.

For the average individual,which one of the following statements is most likely correct regarding retirement?

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

The biggest benefit of an IRA lies in its tax-deferred earnings growth; the longer the money accumulates tax deferred,the bigger the benefit.

According to the Securities and Exchange Commission,one of the easiest ways to boost your retirement savings is:

Considering compounding,for every 10 years you delay before starting retirement,you will need to save _____ times as much each month to catch up.

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

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

Although the full retirement age is rising,you should still apply for Medicare benefits three months before your 65^th birthday.