Question 1

Social Security should be the only source of your retirement income.

Accepted Answer

A) True 
 B)False

Question 2

An annuity in which you receive an income for the rest of your life,but no payments are made to anyone after your death is called:

Accepted Answer

A) straight life annuity. 
B) life annuity with installment certain. 
C) installment refund annuity. 
D) a life with period certain annuity. 
E) Keogh annuity. 
A) straight life annuity. 
B) life annuity with installment certain. 
C) installment refund annuity. 
D) a life with period certain annuity. 
E) Keogh annuity.

Question 3

Which one of the following is probably the best suggestion for staying within your retirement income?

Accepted Answer

A) Skip leisure activities 
B) Cut your food expenditures 
C) Cancel your life and property insurance 
D) Use your skills and time instead of your money 
E) Get rid of your health insurance 
A) Skip leisure activities 
B) Cut your food expenditures 
C) Cancel your life and property insurance 
D) Use your skills and time instead of your money 
E) Get rid of your health insurance

Question 4

Sarah Logan is a professor at a public university.Her employer makes nontaxable contributions to a plan in her name and reduces her salary by the same amount.What type of retirement plan does Sarah have?

Accepted Answer

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

Question 5

Why is retirement planning important?

Accepted Answer

Retirement planning is important because

Question 6

If you do not plan to retire early,then when should you apply for Social Security?

Accepted Answer

A) 3 months before your 65th birthday 
B) 1 year before your 65th birthday 
C) 1 year after your 65th birthday 
D) 10 years before your 65th birthday 
E) On your 65th birthday 
A) 3 months before your 65th birthday 
B) 1 year before your 65th birthday 
C) 1 year after your 65th birthday 
D) 10 years before your 65th birthday 
E) On your 65th birthday

Question 7

Your Social Security benefits may be reduced if you earn above a certain amount a year,depending on your age and the amount you earn.

Accepted Answer

A) True 
 B)False

Question 8

A joint-and-survivor annuity pays its installments until the death of the last designated survivor.

Accepted Answer

A) True 
 B)False

Question 9

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 income, 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 income, 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 10

When you change jobs,your 401(k)plan savings can be left with the previous employer's plan,can be rolled over to the new employer's plan or to an IRA,or can be cashed out

Accepted Answer

A) True 
 B)False

Question 11

Which is correct with respect to life expectancy?

Accepted Answer

A) Men have a longer life expectancy than women at age 65. 
B) There is no difference in life expectancy between men and women at age 65. 
C) Women have a longer life expectancy than men at age 65. 
D) There is no difference in life expectancy among retirees in retirement communities at age 65. 
E) None of these statements is correct. 
A) Men have a longer life expectancy than women at age 65. 
B) There is no difference in life expectancy between men and women at age 65. 
C) Women have a longer life expectancy than men at age 65. 
D) There is no difference in life expectancy among retirees in retirement communities at age 65. 
E) None of these statements is correct.

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

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 14

Cynthia Coleman is reviewing her assets and liabilities.What is her net worth?

Accepted Answer

Assets:
Cash in checking account,$800
Ca

Question 15

Pension plan portability enables you to carry earned benefits from one employer's pension plan to another's when you change jobs.

Accepted Answer

A) True 
 B)False

Question 16

Social Security covers approximately what percent of all U.S.workers?

Accepted Answer

A) 72 
B) 78 
C) 86 
D) 97 
E) 99 
A) 72 
B) 78 
C) 86 
D) 97 
E) 99

Question 17

Most people can qualify for reduced Social Security retirement benefits at age 62.

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

A) Food 
B) Insurance 
C) Expenses for leisure activities 
D) Medical expenses 
E) Federal income taxes 
A) Food 
B) Insurance 
C) Expenses for leisure activities 
D) Medical expenses 
E) Federal income taxes

Question 19

Ted Riley owns a vehicle worth $25,000 and a home worth $225,000.He has a checking account balance of $500,a savings account balance of $1,500,and a mutual fund worth $85,000.His personal assets are worth $90,000.He still owes $10,000 on his car,$100,000 on his home,and $1,000 on his credit card.What is Ted's net worth?

Accepted Answer

A) $538,000 
B) $427,000 
C) $316,000 
D) $111,000 
E) $136,000 
A) $538,000 
B) $427,000 
C) $316,000 
D) $111,000 
E) $136,000

Question 20

A SEP-IRA plan is simply an individual retirement account funded by the employer.

Accepted Answer

A) True 
 B)False

Social Security should be the only source of your retirement income.

An annuity in which you receive an income for the rest of your life,but no payments are made to anyone after your death is called:

Which one of the following is probably the best suggestion for staying within your retirement income?

Sarah Logan is a professor at a public university.Her employer makes nontaxable contributions to a plan in her name and reduces her salary by the same amount.What type of retirement plan does Sarah have?

Why is retirement planning important?

If you do not plan to retire early,then when should you apply for Social Security?

Your Social Security benefits may be reduced if you earn above a certain amount a year,depending on your age and the amount you earn.

A joint-and-survivor annuity pays its installments until the death of the last designated survivor.

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

When you change jobs,your 401(k)plan savings can be left with the previous employer's plan,can be rolled over to the new employer's plan or to an IRA,or can be cashed out

Which is correct with respect to life expectancy?

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

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?

Cynthia Coleman is reviewing her assets and liabilities.What is her net worth?

Pension plan portability enables you to carry earned benefits from one employer's pension plan to another's when you change jobs.

Social Security covers approximately what percent of all U.S.workers?

Most people can qualify for reduced Social Security retirement benefits at age 62.

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

A SEP-IRA plan is simply an individual retirement account funded by the employer.

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

Social Security should be the only source of your retirement income.

An annuity in which you receive an income for the rest of your life,but no payments are made to anyone after your death is called:

Which one of the following is probably the best suggestion for staying within your retirement income?

Sarah Logan is a professor at a public university.Her employer makes nontaxable contributions to a plan in her name and reduces her salary by the same amount.What type of retirement plan does Sarah have?

Why is retirement planning important?

If you do not plan to retire early,then when should you apply for Social Security?

Your Social Security benefits may be reduced if you earn above a certain amount a year,depending on your age and the amount you earn.

A joint-and-survivor annuity pays its installments until the death of the last designated survivor.

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

When you change jobs,your 401(k)plan savings can be left with the previous employer's plan,can be rolled over to the new employer's plan or to an IRA,or can be cashed out

Which is correct with respect to life expectancy?

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

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?

Cynthia Coleman is reviewing her assets and liabilities.What is her net worth?

Pension plan portability enables you to carry earned benefits from one employer's pension plan to another's when you change jobs.

Social Security covers approximately what percent of all U.S.workers?

Most people can qualify for reduced Social Security retirement benefits at age 62.

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

A SEP-IRA plan is simply an individual retirement account funded by the employer.

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