Question 1

Your first step in retirement planning is to analyze your current assets and liabilities.

Accepted Answer

A) True 
 B)False

Question 2

The current value of your life insurance and pensions are included in your assets.

Accepted Answer

A) True 
 B)False

Question 3

Which one of the following is a disadvantage associated with Social Security retirement income?

Accepted Answer

A) earned income partially offsets benefits 
B) forced savings 
C) portable from job to job 
D) cost shared with employer 
E) inflation-adjusted survivorship rights 
A) earned income partially offsets benefits 
B) forced savings 
C) portable from job to job 
D) cost shared with employer 
E) inflation-adjusted survivorship rights

Question 4

In respect to your federal income taxes,which one of the following may you have to do during retirement,even if you did not have to do so prior to retiring? (Assume you have both pre- and post-retirement income. )

Accepted Answer

A) report your dividend and interest income 
B) file an annual tax return no later than April 15 
C) file semi-annual tax returns in April and October 
D) file quarterly estimated tax returns 
E) file semi-annual reports listing all of your income sources 
A) report your dividend and interest income 
B) file an annual tax return no later than April 15 
C) file semi-annual tax returns in April and October 
D) file quarterly estimated tax returns 
E) file semi-annual reports listing all of your income sources

Question 5

ERISA established the Pension Benefit Guaranty Corporation (PBGC).

Accepted Answer

A) True 
 B)False

Question 6

Jasmine Smith owns a condo worth $240,000,a car valued at $25,000,and miscellaneous assets worth $7,500.She owes $185,000 on the condo and $15,000 on the car and has no other debts.Her retirement account,in which she is fully vested,contains $27,500 in mutual funds.She is insured with a $500,000 term life insurance policy.What is her net worth?

Accepted Answer

A) $92,500 
B) $100,000 
C) $115,000 
D) $592,500 
E) $600,000 
A) $92,500 
B) $100,000 
C) $115,000 
D) $592,500 
E) $600,000

Question 7

Which type of annuity gives more income per dollar of outlay than any other type?

Accepted Answer

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

Question 8

The straight life annuity gives more income per dollar of outlay than any other type.

Accepted Answer

A) True 
 B)False

Question 9

Which one of the following is not a typical characteristic of a defined benefit plan?

Accepted Answer

A) employer contributions 
B) formula-based benefit 
C) investments managed by plan officials 
D) limited government-guaranteed benefit 
E) employee required contributions 
A) employer contributions 
B) formula-based benefit 
C) investments managed by plan officials 
D) limited government-guaranteed benefit 
E) employee required contributions

Question 10

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

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

What are the key steps in retirement planning?

Accepted Answer

The first step is to analyze your assets

Question 13

To offset inflation,your retirement assets must earn enough to keep up with,and even exceed,the rate of inflation.

Accepted Answer

A) True 
 B)False

Question 14

A defined-contribution plan has an individual account for each employee;therefore,these plans are also called individual account plans.

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

You can determine your net worth by:

Accepted Answer

A) subtracting your assets from your liabilities. 
B) subtracting the value of your home from the mortgage balance. 
C) adding your liabilities and assets. 
D) subtracting your liabilities from your assets. 
E) adding the value of your home to that of your other assets. 
A) subtracting your assets from your liabilities. 
B) subtracting the value of your home from the mortgage balance. 
C) adding your liabilities and assets. 
D) subtracting your liabilities from your assets. 
E) adding the value of your home to that of your other assets.

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

One of the misconceptions about retirement is that your expenses will drop when you retire.

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

What types of housing options are available to retirees?

Accepted Answer

Staying in their present home,whether a

Your first step in retirement planning is to analyze your current assets and liabilities.

The current value of your life insurance and pensions are included in your assets.

Which one of the following is a disadvantage associated with Social Security retirement income?

In respect to your federal income taxes,which one of the following may you have to do during retirement,even if you did not have to do so prior to retiring? (Assume you have both pre- and post-retirement income. )

ERISA established the Pension Benefit Guaranty Corporation (PBGC).

Which type of annuity gives more income per dollar of outlay than any other type?

The straight life annuity gives more income per dollar of outlay than any other type.

Which one of the following is not a typical characteristic of a defined benefit plan?

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?

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

What are the key steps in retirement planning?

To offset inflation,your retirement assets must earn enough to keep up with,and even exceed,the rate of inflation.

A defined-contribution plan has an individual account for each employee;therefore,these plans are also called individual account plans.

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

You can determine your net worth by:

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

One of the misconceptions about retirement is that your expenses will drop when you retire.

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

What types of housing options are available to retirees?

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

Your first step in retirement planning is to analyze your current assets and liabilities.

The current value of your life insurance and pensions are included in your assets.

Which one of the following is a disadvantage associated with Social Security retirement income?

In respect to your federal income taxes,which one of the following may you have to do during retirement,even if you did not have to do so prior to retiring? (Assume you have both pre- and post-retirement income. )

ERISA established the Pension Benefit Guaranty Corporation (PBGC).

Which type of annuity gives more income per dollar of outlay than any other type?

The straight life annuity gives more income per dollar of outlay than any other type.

Which one of the following is not a typical characteristic of a defined benefit plan?

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?

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

What are the key steps in retirement planning?

To offset inflation,your retirement assets must earn enough to keep up with,and even exceed,the rate of inflation.

A defined-contribution plan has an individual account for each employee;therefore,these plans are also called individual account plans.

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

You can determine your net worth by:

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

One of the misconceptions about retirement is that your expenses will drop when you retire.

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

What types of housing options are available to retirees?

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