Question 1

It is a fact that you will spend less money when you retire.

Accepted Answer

A) True 
 B)False

Question 2

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

Accepted Answer

A)  Birth certificate. 
B)  Legal name change. 
C)  Insurance policy. 
D)  Marriage certificate. 
E)  Spending plan or budget. 
A)  Birth certificate. 
B)  Legal name change. 
C)  Insurance policy. 
D)  Marriage certificate. 
E)  Spending plan or budget.

Question 3

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 4

An inter vivos trust takes effect while you're alive.

Accepted Answer

A) True 
 B)False

Question 5

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 6

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

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 7

An "average" older (65+) household spends more money on

Accepted Answer

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

Question 8

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 9

An employer's contribution will vary according to the company's profits in a

Accepted Answer

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

Question 10

Changes to a will should be written in ink on the will and initialed.

Accepted Answer

A) True 
 B)False

Question 11

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 12

How is eligibility determined for receiving Social Security retirement benefits?

Accepted Answer

A)  Marital status. 
B)  Credits. 
C)  Family size. 
D)  Tax bracket. 
E)  All of these. 
A)  Marital status. 
B)  Credits. 
C)  Family size. 
D)  Tax bracket. 
E)  All of these.

Question 13

Every adult should have a written will.

Accepted Answer

A) True 
 B)False

Question 14

Estate planning is an essential part of

Accepted Answer

A)  Preretirement planning. 
B)  Budgeting basic living expenses. 
C)  Vacation planning. 
D)  Both retirement planning and financial planning. 
E)  Both financial and vacation planning. 
A)  Preretirement planning. 
B)  Budgeting basic living expenses. 
C)  Vacation planning. 
D)  Both retirement planning and financial planning. 
E)  Both financial and vacation planning.

Question 15

Julian's annual contributions to his retirement are not tax-deductible, but his earnings accumulate tax-free. He is investing in 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 16

A salary-reduction plan is also known as a

Accepted Answer

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

Question 17

People should never dip into their savings during retirement.

Accepted Answer

A) True 
 B)False

Question 18

Only people who are retired can receive a benefit from Social Security.

Accepted Answer

A) True 
 B)False

Question 19

Housing and life insurance are so important to your retirement income that other investments can be ignored as you review your assets.

Accepted Answer

A) True 
 B)False

Question 20

When Social Security was established, it was never intended to provide 100% of one's retirement income.

Accepted Answer

A) True 
 B)False

It is a fact that you will spend less money when you retire.

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

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

An inter vivos trust takes effect while you're alive.

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

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

An "average" older (65+) household spends more money on

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

An employer's contribution will vary according to the company's profits in a

Changes to a will should be written in ink on the will and initialed.

A(n) ____ cannot be changed or ended.

How is eligibility determined for receiving Social Security retirement benefits?

Every adult should have a written will.

Estate planning is an essential part of

Julian's annual contributions to his retirement are not tax-deductible, but his earnings accumulate tax-free. He is investing in a

A salary-reduction plan is also known as a

People should never dip into their savings during retirement.

Only people who are retired can receive a benefit from Social Security.

Housing and life insurance are so important to your retirement income that other investments can be ignored as you review your assets.

When Social Security was established, it was never intended to provide 100% of one's retirement income.

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

It is a fact that you will spend less money when you retire.

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

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

An inter vivos trust takes effect while you're alive.

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

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

An "average" older (65+) household spends more money on

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

An employer's contribution will vary according to the company's profits in a

Changes to a will should be written in ink on the will and initialed.

A(n) ____ cannot be changed or ended.

How is eligibility determined for receiving Social Security retirement benefits?

Every adult should have a written will.

Estate planning is an essential part of

Julian's annual contributions to his retirement are not tax-deductible, but his earnings accumulate tax-free. He is investing in a

A salary-reduction plan is also known as a

People should never dip into their savings during retirement.

Only people who are retired can receive a benefit from Social Security.

Housing and life insurance are so important to your retirement income that other investments can be ignored as you review your assets.

When Social Security was established, it was never intended to provide 100% of one's retirement income.

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