Question 1

Annuity payments may either be a fixed or a variable amount.

Accepted Answer

A) True 
 B)False

Question 2

What happens to your Social Security income if you retire early?

Accepted Answer

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

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

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 5

Under certain circumstances,the Roth IRA allows for penalty-free withdrawals as well as tax-free distributions.

Accepted Answer

A) True 
 B)False

Question 6

As its retirement plan contribution,Aaron Copeland's employer has been buying shares of the company's stock for Aaron's benefit.What type of retirement plan does Aaron most likely 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 7

Saving now for the future requires tackling the trade-offs between spending and saving.

Accepted Answer

A) True 
 B)False

Question 8

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 9

According to the Social Security Administration,the Social Security program is financially sound.

Accepted Answer

A) True 
 B)False

Question 10

Which type of housing is preferred by most persons who are approaching retirement?

Accepted Answer

A) house-sharing 
B) present home 
C) a smaller apartment 
D) nursing home 
E) boarding-house/rooming house 
A) house-sharing 
B) present home 
C) a smaller apartment 
D) nursing home 
E) boarding-house/rooming house

Question 11

The Education IRA was renamed the Coverdell Education Savings Account.

Accepted Answer

A) True 
 B)False

Question 12

People born after 1928 need at least 60 quarters of coverage to qualify for Social Security benefits.

Accepted Answer

A) True 
 B)False

Question 13

Over the last two decades,the defined-benefit plan has continued to grow rapidly while the number of defined-contribution plans has generally dropped.

Accepted Answer

A) True 
 B)False

Question 14

Your federal income taxes will probably be lower during the retirement years.

Accepted Answer

A) True 
 B)False

Question 15

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 16

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 small amount,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 small amount,to help cover my retirement costs.

Question 17

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 18

What types of expenses might increase during retirement?

Accepted Answer

Medical expenses and

Question 19

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 even in an inflationary environment. 
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 even in an inflationary environment. 
E) Your living costs will remain constant once you retirE.

Question 20

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

Annuity payments may either be a fixed or a variable amount.

What happens to your Social Security income if you retire early?

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

Under certain circumstances,the Roth IRA allows for penalty-free withdrawals as well as tax-free distributions.

As its retirement plan contribution,Aaron Copeland's employer has been buying shares of the company's stock for Aaron's benefit.What type of retirement plan does Aaron most likely have?

Saving now for the future requires tackling the trade-offs between spending and saving.

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.

According to the Social Security Administration,the Social Security program is financially sound.

Which type of housing is preferred by most persons who are approaching retirement?

The Education IRA was renamed the Coverdell Education Savings Account.

People born after 1928 need at least 60 quarters of coverage to qualify for Social Security benefits.

Over the last two decades,the defined-benefit plan has continued to grow rapidly while the number of defined-contribution plans has generally dropped.

Your federal income taxes will probably be lower during the retirement years.

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:

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?

What types of expenses might increase during retirement?

Which statement is most likely correct about retirement planning?

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?

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

Exam 18: Starting Early: Retirement Planning

Annuity payments may either be a fixed or a variable amount.

What happens to your Social Security income if you retire early?

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

Under certain circumstances,the Roth IRA allows for penalty-free withdrawals as well as tax-free distributions.

As its retirement plan contribution,Aaron Copeland's employer has been buying shares of the company's stock for Aaron's benefit.What type of retirement plan does Aaron most likely have?

Saving now for the future requires tackling the trade-offs between spending and saving.

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.

According to the Social Security Administration,the Social Security program is financially sound.

Which type of housing is preferred by most persons who are approaching retirement?

The Education IRA was renamed the Coverdell Education Savings Account.

People born after 1928 need at least 60 quarters of coverage to qualify for Social Security benefits.

Over the last two decades,the defined-benefit plan has continued to grow rapidly while the number of defined-contribution plans has generally dropped.

Your federal income taxes will probably be lower during the retirement years.

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:

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?

What types of expenses might increase during retirement?

Which statement is most likely correct about retirement planning?

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?

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