Question 1

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

Accepted Answer

A) I should wait until at least age 40 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 40 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 2

Which one of the following is probably the best suggestion for stretching 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 3

If you work after 65,your Social Security benefits will neither increase nor decrease.

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

Earned interest on annuities accumulates tax-free until the annuity payments begin.

Accepted Answer

A) True 
 B)False

Question 6

If your employer is a tax-exempt institution such as a hospital,university,or museum,the salary reduction plan is called a Section 403(b)plan.

Accepted Answer

A) True 
 B)False

Question 7

Under a 401(k)plan,you can elect to have your employer make nontaxable contributions to the plan for your benefit and reduce your salary by an offsetting amount.

Accepted Answer

A) True 
 B)False

Question 8

It is almost certain that your pension benefits will increase to keep pace with inflation.

Accepted Answer

A) True 
 B)False

Question 9

Your work-related expenses,such as driving back and forth to work,will be lower or eliminated during retirement.

Accepted Answer

A) True 
 B)False

Question 10

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 11

The two most popular personal retirement plans are individual retirement accounts (IRAs)and Keogh accounts.

Accepted Answer

A) True 
 B)False

Question 12

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) Education IRA 
E) 401(k) 
A) traditional IRA 
B) Roth IRA 
C) spousal IRA 
D) Education IRA 
E) 401(k)

Question 13

Your Social Security payments will start at age 65 whether you apply for benefits or not.

Accepted Answer

A) True 
 B)False

Question 14

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

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 15

Why is financial planning for retirement vitally important?

Accepted Answer

A) You can expect to live in retirement for many years. 
B) Social Security and your private pension may be insufficient to cover the cost of living. 
C) Inflation may diminish the purchasing power of your retirement savings. 
D) Knowing that you are financially prepared for retirement gives you peace of minD. 
E) All of the listed factors are vitally important. 
A) You can expect to live in retirement for many years. 
B) Social Security and your private pension may be insufficient to cover the cost of living. 
C) Inflation may diminish the purchasing power of your retirement savings. 
D) Knowing that you are financially prepared for retirement gives you peace of minD. 
E) All of the listed factors are vitally important.

Question 16

Which one of the following is not a private source of retirement income?

Accepted Answer

A) traditional IRAs 
B) Social Security 
C) defined contribution plans 
D) defined benefit plans 
E) spousal IRAs 
A) traditional IRAs 
B) Social Security 
C) defined contribution plans 
D) defined benefit plans 
E) spousal IRAs

Question 17

In a reverse annuity mortgage,a lender uses your house as collateral to buy an annuity for you from a life insurance company.

Accepted Answer

A) True 
 B)False

Question 18

Because of their actuarial aspects,defined-benefit plans tend to be more-complicated and more expensive to administer than defined-contribution plans.

Accepted Answer

A) True 
 B)False

Question 19

Why is retirement planning important?

Accepted Answer

Retirement planning is important because

Question 20

When should you apply for Social Security?

Accepted Answer

A) 3 months before you retire 
B) 1 year before you retire 
C) 1 year after you retire 
D) 10 years before you retire 
E) on the day you retire 
A) 3 months before you retire 
B) 1 year before you retire 
C) 1 year after you retire 
D) 10 years before you retire 
E) on the day you retire

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

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

If you work after 65,your Social Security benefits will neither increase nor decrease.

Inflation increases the purchasing power of your retirement savings.

Earned interest on annuities accumulates tax-free until the annuity payments begin.

If your employer is a tax-exempt institution such as a hospital,university,or museum,the salary reduction plan is called a Section 403(b)plan.

Under a 401(k)plan,you can elect to have your employer make nontaxable contributions to the plan for your benefit and reduce your salary by an offsetting amount.

It is almost certain that your pension benefits will increase to keep pace with inflation.

Your work-related expenses,such as driving back and forth to work,will be lower or eliminated during retirement.

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

The two most popular personal retirement plans are individual retirement accounts (IRAs)and Keogh accounts.

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?

Your Social Security payments will start at age 65 whether you apply for benefits or not.

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

Why is financial planning for retirement vitally important?

Which one of the following is not a private source of retirement income?

In a reverse annuity mortgage,a lender uses your house as collateral to buy an annuity for you from a life insurance company.

Because of their actuarial aspects,defined-benefit plans tend to be more-complicated and more expensive to administer than defined-contribution plans.

Why is retirement planning important?

When should you apply for Social Security?

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 Stocks

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

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

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

If you work after 65,your Social Security benefits will neither increase nor decrease.

Inflation increases the purchasing power of your retirement savings.

Earned interest on annuities accumulates tax-free until the annuity payments begin.

If your employer is a tax-exempt institution such as a hospital,university,or museum,the salary reduction plan is called a Section 403(b)plan.

Under a 401(k)plan,you can elect to have your employer make nontaxable contributions to the plan for your benefit and reduce your salary by an offsetting amount.

It is almost certain that your pension benefits will increase to keep pace with inflation.

Your work-related expenses,such as driving back and forth to work,will be lower or eliminated during retirement.

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

The two most popular personal retirement plans are individual retirement accounts (IRAs)and Keogh accounts.

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?

Your Social Security payments will start at age 65 whether you apply for benefits or not.

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

Why is financial planning for retirement vitally important?

Which one of the following is not a private source of retirement income?

In a reverse annuity mortgage,a lender uses your house as collateral to buy an annuity for you from a life insurance company.

Because of their actuarial aspects,defined-benefit plans tend to be more-complicated and more expensive to administer than defined-contribution plans.

Why is retirement planning important?

When should you apply for Social Security?

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 Stocks

Investing in Bonds

Investing in Mutual Funds

Investing in Real Estate and Other Investment Alternatives

Estate Planning

Filters