Exam 14: Starting Early: Retirement and Estate Planning

David went to his Uncle Edward for advice about spending money in retirement.What advice would you expect Uncle Edward to share about specific types of expenses that probably will increase or will decrease?

What is a power of attorney?

Which of the following is not a document associated with estate planning?

A traditional marital share will leaves everything to your spouse.

A(n)____ allows you to end the trust or change its terms during your lifetime.

Darlene is updating her estate planning and wants to set up the legal document to leave $5.1 million to her husband.She is writing a(n)

Your will must be signed by

Only one will may legally be written during a person's lifetime.

A defined benefit plan specifies the benefits that you will receive at retirement age.

The SEP IRA is the simplest type of retirement plan if a person is self-employed.

This tax is only imposed by state governments.

What is the difference between a regular IRA and a Roth IRA?

What is a will?

Identify four legal documents associated with estate planning.

Why is it important to consider inflation in retirement planning?

A codicil is

When Paul leaves his job at Acme Bending Company,he may choose to move his 401(k)balance to a plan called a rollover IRA.

Vesting is the right to receive the

Because of the potential effect of inflation,individuals should underestimate the amount of money needed for retirement.

This trust becomes effective upon your death.