Question 1

What happens to your Social Security income if you retire early at age 62 instead of 65?

Accepted Answer

A) There is a temporary reduction of 5/9 of one percent for each month that you receive payments before age 65.. 
B) There is a permanent reduction of 5/9 of one percent for each month that you receive payments before age 65. 
C) There is a temporary reduction of one percent for each year that you receive payments before age 65. 
D) There is a permanent reduction of one percent for each year that you receive payments before age 65. 
E) There is no impact on your Social Security income if you retire early. 
A) There is a temporary reduction of 5/9 of one percent for each month that you receive payments before age 65.. 
B) There is a permanent reduction of 5/9 of one percent for each month that you receive payments before age 65. 
C) There is a temporary reduction of one percent for each year that you receive payments before age 65. 
D) There is a permanent reduction of one percent for each year that you receive payments before age 65. 
E) There is no impact on your Social Security income if you retire early.

Question 2

Which one of the following is the most widely used source of retirement income?

Accepted Answer

A) IRAs 
B) Keogh plans 
C) Social Security 
D) Company pension plans 
E) Union pension plans 
A) IRAs 
B) Keogh plans 
C) Social Security 
D) Company pension plans 
E) Union pension plans

Question 3

You can create a "my Social Security" account if you are 18 or older and have a Social Security number,valid e-mail,and U.S.mail address.

Accepted Answer

A) True 
 B)False

Question 4

Inflation increases the purchasing power of your retirement savings.

Accepted Answer

A) True 
 B)False

Question 5

During retirement planning,you would need to estimate your monthly retirement expenses.Provide examples of monthly expenses that are fixed and monthly expenses that are variable.

Accepted Answer

Fixed Expenses: rent or mortgage payment

Question 6

Nancy Moore is planning for her retirement.She guesses that by the time she retires,her mortgage will be paid off on her home.She expects she will pay $600 a month on food and that her medical expenses will be $400 a month.She also estimates that she will spend $400 a month on things that she enjoys like traveling,going to concerts,reading and other similar activities.What step in the retirement planning process is Nancy 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 7

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

Accepted Answer

A) I should wait until at least age 45 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 45 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 8

Which statement is correct regarding retirement living expenses?

Accepted Answer

A) It is impossible to estimate your spending needs. 
B) Your spending patterns will probably not change. 
C) You'll use a smaller amount of money for food, housing, and medical care. 
D) The exact amount of money you'll need is impossible to predict. 
E) Work-related expenses, such as driving back and forth to work, tend to be higher during retirement. 
A) It is impossible to estimate your spending needs. 
B) Your spending patterns will probably not change. 
C) You'll use a smaller amount of money for food, housing, and medical care. 
D) The exact amount of money you'll need is impossible to predict. 
E) Work-related expenses, such as driving back and forth to work, tend to be higher during retirement.

Question 9

What percent of the average worker's preretirement earnings is replaced by Social Security?

Accepted Answer

A) 25% 
B) 40% 
C) 50% 
D) 70% 
E) 90% 
A) 25% 
B) 40% 
C) 50% 
D) 70% 
E) 90%

Question 10

Social Security is a package of protection,providing retirement,survivors',and disability benefits.

Accepted Answer

A) True 
 B)False

Question 11

What are the possible sources of income for retirees?

Accepted Answer

Possible sources of income for retirees

Question 12

Which statement is most likely correct about retirement planning?

Accepted Answer

A) Social Security will cover most of your expenses. 
B) Your employer's pension combined with your Social Security will cover your retirement expenses. 
C) Most retirees don't need to worry about inflation. 
D) Your pension may remain constant and not keep pace with inflation. 
E) Your living costs will remain constant once you retire. 
A) Social Security will cover most of your expenses. 
B) Your employer's pension combined with your Social Security will cover your retirement expenses. 
C) Most retirees don't need to worry about inflation. 
D) Your pension may remain constant and not keep pace with inflation. 
E) Your living costs will remain constant once you retire.

Question 13

The potential loss of buying power during inflation is what makes it so important to plan ahead for your retirement.

Accepted Answer

A) True 
 B)False

Question 14

Which type of housing is designed to allow people to stay in their homes as they grow older and more frail?

Accepted Answer

A) Two-story house 
B) Multi-story apartment complex 
C) Rooming house 
D) Universal design 
E) Rental unit 
A) Two-story house 
B) Multi-story apartment complex 
C) Rooming house 
D) Universal design 
E) Rental unit

Question 15

In a marriage that lasts more than 15 years,there's generally a ____________ split of the marital assets during a divorce.

Accepted Answer

A) 10-90 
B) 30-70 
C) 40-60 
D) 50-50 
E) 60-40 
A) 10-90 
B) 30-70 
C) 40-60 
D) 50-50 
E) 60-40

Question 16

During a divorce,pension benefits are generally divided between the spouses primarily based on the:

Accepted Answer

A) length of the divorce period. 
B) life expectancies of each spouse. 
C) length of the marriage. 
D) current age of each spouse. 
E) living arrangements for the couple's children. 
A) length of the divorce period. 
B) life expectancies of each spouse. 
C) length of the marriage. 
D) current age of each spouse. 
E) living arrangements for the couple's children.

Question 17

The time to begin saving is when you are young.

Accepted Answer

A) True 
 B)False

Question 18

Which retirement plan is specifically designed for self-employed individuals and their employees?

Accepted Answer

A) Roth IRA 
B) Traditional IRA 
C) Defined-contribution plan 
D) Keogh plan 
E) Defined-benefit plan 
A) Roth IRA 
B) Traditional IRA 
C) Defined-contribution plan 
D) Keogh plan 
E) Defined-benefit plan

Question 19

The contribution Billy Freniere's employer makes to his retirement plan depends on the profits of the company.What type of retirement plan does Billy have?

Accepted Answer

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

Question 20

Ben Carmichael has been making contributions into an individual retirement account for his retirement.His contributions are tax deductible as his employer does not offer a retirement plan.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)

What happens to your Social Security income if you retire early at age 62 instead of 65?

Which one of the following is the most widely used source of retirement income?

You can create a "my Social Security" account if you are 18 or older and have a Social Security number,valid e-mail,and U.S.mail address.

Inflation increases the purchasing power of your retirement savings.

During retirement planning,you would need to estimate your monthly retirement expenses.Provide examples of monthly expenses that are fixed and monthly expenses that are variable.

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

Which statement is correct regarding retirement living expenses?

What percent of the average worker's preretirement earnings is replaced by Social Security?

Social Security is a package of protection,providing retirement,survivors',and disability benefits.

What are the possible sources of income for retirees?

Which statement is most likely correct about retirement planning?

The potential loss of buying power during inflation is what makes it so important to plan ahead for your retirement.

Which type of housing is designed to allow people to stay in their homes as they grow older and more frail?

In a marriage that lasts more than 15 years,there's generally a ____________ split of the marital assets during a divorce.

During a divorce,pension benefits are generally divided between the spouses primarily based on the:

The time to begin saving is when you are young.

Which retirement plan is specifically designed for self-employed individuals and their employees?

The contribution Billy Freniere's employer makes to his retirement plan depends on the profits of the company.What type of retirement plan does Billy have?

Ben Carmichael has been making contributions into an individual retirement account for his retirement.His contributions are tax deductible as his employer does not offer a retirement plan.What type of individual retirement account does he have?

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

What happens to your Social Security income if you retire early at age 62 instead of 65?

Which one of the following is the most widely used source of retirement income?

You can create a "my Social Security" account if you are 18 or older and have a Social Security number,valid e-mail,and U.S.mail address.

Inflation increases the purchasing power of your retirement savings.

During retirement planning,you would need to estimate your monthly retirement expenses.Provide examples of monthly expenses that are fixed and monthly expenses that are variable.

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

Which statement is correct regarding retirement living expenses?

What percent of the average worker's preretirement earnings is replaced by Social Security?

Social Security is a package of protection,providing retirement,survivors',and disability benefits.

What are the possible sources of income for retirees?

Which statement is most likely correct about retirement planning?

The potential loss of buying power during inflation is what makes it so important to plan ahead for your retirement.

Which type of housing is designed to allow people to stay in their homes as they grow older and more frail?

In a marriage that lasts more than 15 years,there's generally a ____________ split of the marital assets during a divorce.

During a divorce,pension benefits are generally divided between the spouses primarily based on the:

The time to begin saving is when you are young.

Which retirement plan is specifically designed for self-employed individuals and their employees?

The contribution Billy Freniere's employer makes to his retirement plan depends on the profits of the company.What type of retirement plan does Billy have?

Ben Carmichael has been making contributions into an individual retirement account for his retirement.His contributions are tax deductible as his employer does not offer a retirement plan.What type of individual retirement account does he have?

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