Question 1

A benefit of an employer pension plan is that taxes are eliminated.

Accepted Answer

A) True 
 B)False

Question 2

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 3

This allows the trustor to receive benefits during his or her lifetime.

Accepted Answer

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

Question 4

Which of the following is not a major 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 major sources of retirement income. 
A)  Annuity. 
B)  Employer pension plan. 
C)  Personal retirement plan. 
D)  Public pension plan. 
E)  All of these are major sources of retirement income.

Question 5

The four primary sources of retirement income are employer pension plans, personal retirement plans, annuities, and public pension plans.

Accepted Answer

A) True 
 B)False

Question 6

A(n) ______ administers a trust.

Accepted Answer

A)  beneficiary 
B)  executor 
C)  grantor 
D)  guardian 
E)  trustee 
A)  beneficiary 
B)  executor 
C)  grantor 
D)  guardian 
E)  trustee

Question 7

When conducting a financial analysis for retirement planning,

Accepted Answer

A)  A large mortgage should not affect your financial planning. 
B)  Investments should be evaluated to determine whether their income can help cover living expenses. 
C)  Keeping your current, large house will be cheaper to maintain than a move to a smaller house. 
D)  Life insurance should be avoided. 
E)  All of these are true. 
A)  A large mortgage should not affect your financial planning. 
B)  Investments should be evaluated to determine whether their income can help cover living expenses. 
C)  Keeping your current, large house will be cheaper to maintain than a move to a smaller house. 
D)  Life insurance should be avoided. 
E)  All of these are true.

Question 8

When planning for retirement, inflation

Accepted Answer

A)  Decreases through retirement. 
B)  Should be ignored since it will have no effect on retirement funding. 
C)  Should be considered since income received earlier in retirement will buy more than the same amount received later in retirement due to the rising prices of goods and services. 
D)  Is unimportant since pension income does not change in retirement. 
E)  Should be recognized since it will increase the value of income received in retirement. 
A)  Decreases through retirement. 
B)  Should be ignored since it will have no effect on retirement funding. 
C)  Should be considered since income received earlier in retirement will buy more than the same amount received later in retirement due to the rising prices of goods and services. 
D)  Is unimportant since pension income does not change in retirement. 
E)  Should be recognized since it will increase the value of income received in retirement.

Question 9

Gladys wants to set up a trust that is also known as a bypass trust, family trust, "residuary" trust, A/B trust, and exemption equivalent trust. She should set up a(n)

Accepted Answer

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

Question 10

If you have fully funded your 401(k) and profit-sharing plans up to the allowable limits, then you may want to put away more money for retirement is a(n)

Accepted Answer

A)  Annuity 
B)  Keogh plan 
C)  Roth IRA 
D)  SEP plan 
E)  Spousal IRA 
A)  Annuity 
B)  Keogh plan 
C)  Roth IRA 
D)  SEP plan 
E)  Spousal IRA

Question 11

Social Security covers 97% of all workers in America.

Accepted Answer

A) True 
 B)False

Question 12

When conducting a financial analysis for retirement planning, you should review

Accepted Answer

A)  Housing. 
B)  Life insurance. 
C)  Other Investments. 
D)  Assets. 
E)  All of these. 
A)  Housing. 
B)  Life insurance. 
C)  Other Investments. 
D)  Assets. 
E)  All of these.

Question 13

If you were born in 1960 or later, you will first become eligible to receive Social Security benefits at age 67.

Accepted Answer

A) True 
 B)False

Question 14

A(n) ______ is the creator of a trust.

Accepted Answer

A)  beneficiary 
B)  executor 
C)  grantor 
D)  guardian 
E)  trustee 
A)  beneficiary 
B)  executor 
C)  grantor 
D)  guardian 
E)  trustee

Question 15

If you have children and are writing your will, you need to do all of the following except

Accepted Answer

A)  Select a guardian. 
B)  Write the will with the help of an attorney. 
C)  Select an executor. 
D)  Sign the will in front of two witnesses. 
E)  Select beneficiaries. 
A)  Select a guardian. 
B)  Write the will with the help of an attorney. 
C)  Select an executor. 
D)  Sign the will in front of two witnesses. 
E)  Select beneficiaries.

Question 16

William is updating his estate planning and wants to draft a legal document that leaves all of his assets to his wife except a certain amount which goes into a trust. 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.

Question 17

If you are single, you should not have beneficiaries.

Accepted Answer

A) True 
 B)False

Question 18

An individual can give away up to $14,000 per year before paying an inheritance tax to the IRS.

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

If you subtract your liabilities from your assets, you get your net worth.

Accepted Answer

A) True 
 B)False

A benefit of an employer pension plan is that taxes are eliminated.

What percentage of American workers are covered by Social Security?

This allows the trustor to receive benefits during his or her lifetime.

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

The four primary sources of retirement income are employer pension plans, personal retirement plans, annuities, and public pension plans.

A(n) ______ administers a trust.

When conducting a financial analysis for retirement planning,

When planning for retirement, inflation

Gladys wants to set up a trust that is also known as a bypass trust, family trust, "residuary" trust, A/B trust, and exemption equivalent trust. She should set up a(n)

If you have fully funded your 401(k) and profit-sharing plans up to the allowable limits, then you may want to put away more money for retirement is a(n)

Social Security covers 97% of all workers in America.

When conducting a financial analysis for retirement planning, you should review

If you were born in 1960 or later, you will first become eligible to receive Social Security benefits at age 67.

A(n) ______ is the creator of a trust.

If you have children and are writing your will, you need to do all of the following except

William is updating his estate planning and wants to draft a legal document that leaves all of his assets to his wife except a certain amount which goes into a trust. He is writing a(n)

If you are single, you should not have beneficiaries.

An individual can give away up to $14,000 per year before paying an inheritance tax to the IRS.

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

If you subtract your liabilities from your assets, you get your net worth.

Personal Financial Planning in Action

Money Management Skills

Taxes in Your Financial Plan

Financial Services: Saving Plans and Payment Accounts

Consumer Credit: Advantages, Disadvantages, Sources, and Costs

Consumer Purchasing Strategies and Wise Buying of Motor Vehicles

Selecting and Financing Housing

Home and Automobile Insurance

Health and Disability Insurance

Financial Planning With Life Insurance

Investing Fundamentals and Bonds

Investing in Stocks

Investing in Mutual Funds

Filters

Exam 14: Starting Early: Retirement and Estate Planning

A benefit of an employer pension plan is that taxes are eliminated.

What percentage of American workers are covered by Social Security?

This allows the trustor to receive benefits during his or her lifetime.

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

The four primary sources of retirement income are employer pension plans, personal retirement plans, annuities, and public pension plans.

A(n) ______ administers a trust.

When conducting a financial analysis for retirement planning,

When planning for retirement, inflation

Gladys wants to set up a trust that is also known as a bypass trust, family trust, "residuary" trust, A/B trust, and exemption equivalent trust. She should set up a(n)

If you have fully funded your 401(k) and profit-sharing plans up to the allowable limits, then you may want to put away more money for retirement is a(n)

Social Security covers 97% of all workers in America.

When conducting a financial analysis for retirement planning, you should review

If you were born in 1960 or later, you will first become eligible to receive Social Security benefits at age 67.

A(n) ______ is the creator of a trust.

If you have children and are writing your will, you need to do all of the following except

William is updating his estate planning and wants to draft a legal document that leaves all of his assets to his wife except a certain amount which goes into a trust. He is writing a(n)

If you are single, you should not have beneficiaries.

An individual can give away up to $14,000 per year before paying an inheritance tax to the IRS.

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

If you subtract your liabilities from your assets, you get your net worth.

Personal Financial Planning in Action

Money Management Skills

Taxes in Your Financial Plan

Financial Services: Saving Plans and Payment Accounts

Consumer Credit: Advantages, Disadvantages, Sources, and Costs

Consumer Purchasing Strategies and Wise Buying of Motor Vehicles

Selecting and Financing Housing

Home and Automobile Insurance

Health and Disability Insurance

Financial Planning With Life Insurance

Investing Fundamentals and Bonds

Investing in Stocks

Investing in Mutual Funds

Filters