Question 1

What is the maximum that an employee can contribute annually to a 401(k)plan?

Accepted Answer

An employee may contribute up to $16,500.

Question 2

An "average" older household spends most of its money on

Accepted Answer

A)  Entertainment. 
B)  Food. 
C)  Housing. 
D)  Medical care. 
E)  Transportation. 
A)  Entertainment. 
B)  Food. 
C)  Housing. 
D)  Medical care. 
E)  Transportation. C

Question 3

What is estate planning?

Accepted Answer

Estate planning is the process of creating a detailed plan for managing your assets so that you can make the most of them while you're alive and ensure that they're distributed wisely after your death.

Question 4

When an employer's contribution is used to buy stock in the company for its employees,it has a

Accepted Answer

A)  401(k) plan. 
B)  Money-purchase plan. 
C)  Profit-sharing plan. 
D)  Salary reduction plan. 
E)  Stock bonus plan. 
A)  401(k) plan. 
B)  Money-purchase plan. 
C)  Profit-sharing plan. 
D)  Salary reduction plan. 
E)  Stock bonus plan.

Question 5

Annabelle works at Acme Cleaning Company.When she retires,her employer's health insurance plan and Medicare should cover all of her medical expenses.

Accepted Answer

A) True 
 B)False

Question 6

An "average" older household spends more money on

Accepted Answer

A)  Clothing than on housing. 
B)  Contributions than on medical care. 
C)  Entertainment than on transportation. 
D)  Housing than on contributions, entertainment, and clothing combined. 
E)  Personal insurance than on food. 
A)  Clothing than on housing. 
B)  Contributions than on medical care. 
C)  Entertainment than on transportation. 
D)  Housing than on contributions, entertainment, and clothing combined. 
E)  Personal insurance than on food.

Question 7

What information might you want to include in a letter of last instruction?

Accepted Answer

A letter of last instruction can provide

Question 8

If you die intestate,your beneficiaries will receive your estate.

Accepted Answer

A) True 
 B)False

Question 9

When planning for retirement,you should consider all of the following except

Accepted Answer

A)  Checking that you are receiving all income to which you are entitled. 
B)  Evaluating all assets or valuables that you might be able to convert to cash or sources of income. 
C)  Receiving special discounts because of your retiree status or age. 
D)  Working during retirement. 
E)  Withdrawing all retirement savings within five years of retirement. 
A)  Checking that you are receiving all income to which you are entitled. 
B)  Evaluating all assets or valuables that you might be able to convert to cash or sources of income. 
C)  Receiving special discounts because of your retiree status or age. 
D)  Working during retirement. 
E)  Withdrawing all retirement savings within five years of retirement.

Question 10

Describe a defined contribution plan.

Accepted Answer

A defined contribution plan,sometimes ca

Question 11

Another name for a will is a letter of last instruction.

Accepted Answer

A) True 
 B)False

Question 12

This is the best option if you or your beneficiaries are inexperienced in financial matters and if your estate taxes will be high.

Accepted Answer

A)  Revocable trust 
B)  Disclaimer trust 
C)  Irrevocable trust 
D)  Living trust 
E)  Testamentary trust 
A)  Revocable trust 
B)  Disclaimer trust 
C)  Irrevocable trust 
D)  Living trust 
E)  Testamentary trust

Question 13

Who receives your estate after you die?

Accepted Answer

Your beneficiaries r

Question 14

Lawrence is self-employed and wants to have an investment funded by his company.He should set up a

Accepted Answer

A)  401(k) plan. 
B)  Regular IRA. 
C)  Roth IRA. 
D)  SEP plan. 
E)  Spousal IRA. 
A)  401(k) plan. 
B)  Regular IRA. 
C)  Roth IRA. 
D)  SEP plan. 
E)  Spousal IRA.

Question 15

This is also known as an inter vivos trust.

Accepted Answer

A)  Credit-shelter trust 
B)  Disclaimer trust 
C)  Irrevocable trust 
D)  Living trust 
E)  Testamentary trust 
A)  Credit-shelter trust 
B)  Disclaimer trust 
C)  Irrevocable trust 
D)  Living trust 
E)  Testamentary trust

Question 16

The best definition of estate planning is

Accepted Answer

A)  Assets less liabilities. 
B)  A definite plan for managing property during one's lifetime and at one's death. 
C)  Naming a beneficiary. 
D)  Savings. 
E)  A will. 
A)  Assets less liabilities. 
B)  A definite plan for managing property during one's lifetime and at one's death. 
C)  Naming a beneficiary. 
D)  Savings. 
E)  A will.

Question 17

A(n)____ cannot be changed or ended.

Accepted Answer

A)  irrevocable trust 
B)  living will 
C)  power of attorney 
D)  revocable trust 
E)  will 
A)  irrevocable trust 
B)  living will 
C)  power of attorney 
D)  revocable trust 
E)  will

Question 18

A salary reduction plan is also known as a

Accepted Answer

A)  401(k) plan. 
B)  Money-purchase plan. 
C)  Profit-sharing plan. 
D)  Salary reduction plan. 
E)  Stock bonus plan. 
A)  401(k) plan. 
B)  Money-purchase plan. 
C)  Profit-sharing plan. 
D)  Salary reduction plan. 
E)  Stock bonus plan.

Question 19

A will that is usually prepared with the help of an attorney is known as a(n)

Accepted Answer

A)  Formal will. 
B)  "I love you" will. 
C)  Holographic will. 
D)  Ordinary will. 
E)  Statutory will. 
A)  Formal will. 
B)  "I love you" will. 
C)  Holographic will. 
D)  Ordinary will. 
E)  Statutory will.

Question 20

What is vesting?

Accepted Answer

Vesting is the right to receiv

What is the maximum that an employee can contribute annually to a 401(k)plan?

An "average" older household spends most of its money on

What is estate planning?

When an employer's contribution is used to buy stock in the company for its employees,it has a

Annabelle works at Acme Cleaning Company.When she retires,her employer's health insurance plan and Medicare should cover all of her medical expenses.

An "average" older household spends more money on

What information might you want to include in a letter of last instruction?

If you die intestate,your beneficiaries will receive your estate.

When planning for retirement,you should consider all of the following except

Describe a defined contribution plan.

Another name for a will is a letter of last instruction.

This is the best option if you or your beneficiaries are inexperienced in financial matters and if your estate taxes will be high.

Who receives your estate after you die?

Lawrence is self-employed and wants to have an investment funded by his company.He should set up a

This is also known as an inter vivos trust.

The best definition of estate planning is

A(n)____ cannot be changed or ended.

A salary reduction plan is also known as a

A will that is usually prepared with the help of an attorney is known as a(n)

What is vesting?

Personal Financial Planning in Action

Money Management Skills

Taxes in Your Financial Plan

Financial Services: Savings Plans and Payment Account

Consumer Credit: Advantages, Dis-Advantages, Sources, and Costs

Consumer Purchasing Strategies and Wise Buying of Motor Vehicles

Selecting and Financing Housing

Home and Automobile Insurance

Health and Disability Income Insurance

Financial Planning With Life Insurance

Investing Basics and Evaluating Bonds

Investing in Stocks

Investing in Mutual Funds

Filters

Exam 14: Starting Early: Retirement and Estate Planning

What is the maximum that an employee can contribute annually to a 401(k)plan?

An "average" older household spends most of its money on

What is estate planning?

When an employer's contribution is used to buy stock in the company for its employees,it has a

Annabelle works at Acme Cleaning Company.When she retires,her employer's health insurance plan and Medicare should cover all of her medical expenses.

An "average" older household spends more money on

What information might you want to include in a letter of last instruction?

If you die intestate,your beneficiaries will receive your estate.

When planning for retirement,you should consider all of the following except

Describe a defined contribution plan.

Another name for a will is a letter of last instruction.

This is the best option if you or your beneficiaries are inexperienced in financial matters and if your estate taxes will be high.

Who receives your estate after you die?

Lawrence is self-employed and wants to have an investment funded by his company.He should set up a

This is also known as an inter vivos trust.

The best definition of estate planning is

A(n)____ cannot be changed or ended.

A salary reduction plan is also known as a

A will that is usually prepared with the help of an attorney is known as a(n)

What is vesting?

Personal Financial Planning in Action

Money Management Skills

Taxes in Your Financial Plan

Financial Services: Savings Plans and Payment Account

Consumer Credit: Advantages, Dis-Advantages, Sources, and Costs

Consumer Purchasing Strategies and Wise Buying of Motor Vehicles

Selecting and Financing Housing

Home and Automobile Insurance

Health and Disability Income Insurance

Financial Planning With Life Insurance

Investing Basics and Evaluating Bonds

Investing in Stocks

Investing in Mutual Funds

Filters