Question 1

In 1974 ERISA was passed.What does ERISA stand for?

Accepted Answer

A)  Employee Retirement Income Security Act 
B)  Employer Retirement Income Security Act 
C)  Employee Retirement Investment Security Act 
D)  Employer Retiring Investment Stock Act 
E)  Entity Retirement Investment Security Act 
A)  Employee Retirement Income Security Act 
B)  Employer Retirement Income Security Act 
C)  Employee Retirement Investment Security Act 
D)  Employer Retiring Investment Stock Act 
E)  Entity Retirement Investment Security Act

Question 2

A salary reduction plan for a nonprofit organization is called a 401(k)plan.

Accepted Answer

A) True 
 B)False

Question 3

A testamentary trust takes effect while you're alive.

Accepted Answer

A) True 
 B)False

Question 4

Your estate consists of everything you own.

Accepted Answer

A) True 
 B)False

Question 5

Employers may choose to fund retirement plans for employees.These plans fall into two categories.Identify these categories.

Accepted Answer

The two categories a

Question 6

Estate planning is important for financial planning but not for retirement planning.

Accepted Answer

A) True 
 B)False

Question 7

Trusts and estates must pay quarterly estimated taxes based on taxable income for their

Accepted Answer

A)  Estate tax. 
B)  Gift tax. 
C)  Inheritance tax. 
D)  Trust federal income tax. 
E)  Will tax. 
A)  Estate tax. 
B)  Gift tax. 
C)  Inheritance tax. 
D)  Trust federal income tax. 
E)  Will tax.

Question 8

Another name for an H.R.10 plan or a self-employed retirement plan is a

Accepted Answer

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

Question 9

Another name for a Coverdell account is a(n)

Accepted Answer

A)  Education IRA. 
B)  Regular IRA. 
C)  Roth IRA. 
D)  SEP plan. 
E)  Spousal IRA. 
A)  Education IRA. 
B)  Regular IRA. 
C)  Roth IRA. 
D)  SEP plan. 
E)  Spousal IRA.

Question 10

An estate consists of

Accepted Answer

A)  Home, vehicle, and retirement accounts only. 
B)  Furniture, home, and collections only. 
C)  Everything you own. 
D)  Everything you own except your home if you hold a mortgage on it. 
E)  None of these. 
A)  Home, vehicle, and retirement accounts only. 
B)  Furniture, home, and collections only. 
C)  Everything you own. 
D)  Everything you own except your home if you hold a mortgage on it. 
E)  None of these.

Question 11

A traditional marital share will has some assets going into a trust to provide your spouse lifelong income that will not be taxed.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A)  Annuity. 
B)  Employer pension plan. 
C)  Personal retirement plan. 
D)  Public pension plan. 
E)  All of these are sources of retirement income. 
A)  Annuity. 
B)  Employer pension plan. 
C)  Personal retirement plan. 
D)  Public pension plan. 
E)  All of these are sources of retirement income.

Question 13

What is the maximum amount that one individual can give another each year without paying a gift tax?

Accepted Answer

The maximu

Question 14

When Social Security was established,it was intended to provide less than 100% of one's retirement income.

Accepted Answer

A) True 
 B)False

Question 15

What percentage of American workers are covered by Social Security?

Accepted Answer

A)  15% 
B)  50% 
C)  78% 
D)  97% 
E)  100% 
A)  15% 
B)  50% 
C)  78% 
D)  97% 
E)  100%

Question 16

A stated amount will identifies the amount that will not go to your spouse.

Accepted Answer

A) True 
 B)False

Question 17

Sean's estate planning should

Accepted Answer

A)  Be built by acquiring assets using debt. 
B)  Be distributed first to his cousin, then whatever is left should go to his wife. 
C)  Ignore his beneficiaries. 
D)  Consist primarily of a will. 
E)  Take the needs of his wife and children into account. 
A)  Be built by acquiring assets using debt. 
B)  Be distributed first to his cousin, then whatever is left should go to his wife. 
C)  Ignore his beneficiaries. 
D)  Consist primarily of a will. 
E)  Take the needs of his wife and children into account.

Question 18

Cindy's net worth should increase each year as she moves closer to her retirement.

Accepted Answer

A) True 
 B)False

Question 19

When you die,this tax will be based on the fair market value of your investments,property,and bank accounts less an exemption (of $5.12 million in 2012).

Accepted Answer

A)  Estate tax 
B)  Gift tax 
C)  Inheritance tax 
D)  Trust federal income tax 
E)  Will tax 
A)  Estate tax 
B)  Gift tax 
C)  Inheritance tax 
D)  Trust federal income tax 
E)  Will tax

Question 20

William is updating his estate planning and wants to set up the legal document to leave all of his assets except a specific amount to his wife.He is writing a(n)

Accepted Answer

A)  Exemption trust will. 
B)  Guardian will. 
C)  Simple will. 
D)  Stated amount will. 
E)  Traditional marital share will. 
A)  Exemption trust will. 
B)  Guardian will. 
C)  Simple will. 
D)  Stated amount will. 
E)  Traditional marital share will.

In 1974 ERISA was passed.What does ERISA stand for?

A salary reduction plan for a nonprofit organization is called a 401(k)plan.

A testamentary trust takes effect while you're alive.

Your estate consists of everything you own.

Employers may choose to fund retirement plans for employees.These plans fall into two categories.Identify these categories.

Estate planning is important for financial planning but not for retirement planning.

Trusts and estates must pay quarterly estimated taxes based on taxable income for their

Another name for an H.R.10 plan or a self-employed retirement plan is a

Another name for a Coverdell account is a(n)

An estate consists of

A traditional marital share will has some assets going into a trust to provide your spouse lifelong income that will not be taxed.

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

What is the maximum amount that one individual can give another each year without paying a gift tax?

When Social Security was established,it was intended to provide less than 100% of one's retirement income.

What percentage of American workers are covered by Social Security?

A stated amount will identifies the amount that will not go to your spouse.

Sean's estate planning should

Cindy's net worth should increase each year as she moves closer to her retirement.

When you die,this tax will be based on the fair market value of your investments,property,and bank accounts less an exemption (of $5.12 million in 2012).

William is updating his estate planning and wants to set up the legal document to leave all of his assets except a specific amount to his wife.He is writing a(n)

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

In 1974 ERISA was passed.What does ERISA stand for?

A salary reduction plan for a nonprofit organization is called a 401(k)plan.

A testamentary trust takes effect while you're alive.

Your estate consists of everything you own.

Employers may choose to fund retirement plans for employees.These plans fall into two categories.Identify these categories.

Estate planning is important for financial planning but not for retirement planning.

Trusts and estates must pay quarterly estimated taxes based on taxable income for their

Another name for an H.R.10 plan or a self-employed retirement plan is a

Another name for a Coverdell account is a(n)

An estate consists of

A traditional marital share will has some assets going into a trust to provide your spouse lifelong income that will not be taxed.

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

What is the maximum amount that one individual can give another each year without paying a gift tax?

When Social Security was established,it was intended to provide less than 100% of one's retirement income.

What percentage of American workers are covered by Social Security?

A stated amount will identifies the amount that will not go to your spouse.

Sean's estate planning should

Cindy's net worth should increase each year as she moves closer to her retirement.

When you die,this tax will be based on the fair market value of your investments,property,and bank accounts less an exemption (of $5.12 million in 2012).

William is updating his estate planning and wants to set up the legal document to leave all of his assets except a specific amount to his wife.He is writing a(n)

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