Question 1

Annual increases in the social security benefit check are related to the

Accepted Answer

A)  retiree's income. 
B)  number of dependents. 
C)  quality of life. 
D)  current cost of living. 
E)  pre-retirement cost of living. 
A)  retiree's income. 
B)  number of dependents. 
C)  quality of life. 
D)  current cost of living. 
E)  pre-retirement cost of living. D

Question 2

An investment vehicle that systematically pays out benefits over an extended period of time is a(n)

Accepted Answer

A)  common stock. 
B)  bonds. 
C)  mutual funds. 
D)  annuity. 
E)  money market securities. 
A)  common stock. 
B)  bonds. 
C)  mutual funds. 
D)  annuity. 
E)  money market securities. D

Question 3

Gordon and Lisa estimate that they will need $1,875,000 in 40 years for their retirement years.If they can earn 8 percent annually on their funds,how much do they need to save annually?

Accepted Answer

A)  $7,238 
B)  $7,987 
C)  $8,103 
D)  $9,234 
E)  $9,875 
A)  $7,238 
B)  $7,987 
C)  $8,103 
D)  $9,234 
E)  $9,875 A

Question 4

A $3,000 annual contribution to a retirement account earning 6% will be worth ____ in 20 years.

Accepted Answer

A)  $ 60,000 
B)  $ 96,780 
C)  $100,000 
D)  $110,340 
E)  $192,600 
A)  $ 60,000 
B)  $ 96,780 
C)  $100,000 
D)  $110,340 
E)  $192,600

Question 5

Most people are too conservative when investing their retirement funds.

Accepted Answer

A) True 
 B)False

Question 6

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-In a Roth 401(k),contributions [are | are not] tax deductible.

Accepted Answer

A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement. 
A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement.

Question 7

The proceeds of a variable annuity are dependent on the

Accepted Answer

A)  cost of living. 
B)  Consumer Price Index. 
C)  investment return. 
D)  tax rate. 
E)  actual investment. 
A)  cost of living. 
B)  Consumer Price Index. 
C)  investment return. 
D)  tax rate. 
E)  actual investment.

Question 8

Retirement plan portability is characterized by one's ability to move retirement plan investments from one investment to another investment while working for the company.

Accepted Answer

A) True 
 B)False

Question 9

The two ways to buy annuities are single premium and

Accepted Answer

A)  multi-premium. 
B)  future premium. 
C)  installment premium. 
D)  guaranteed premium. 
E)  lateral premium. 
A)  multi-premium. 
B)  future premium. 
C)  installment premium. 
D)  guaranteed premium. 
E)  lateral premium.

Question 10

Major sources of retirement income include

Accepted Answer

A)  social security. 
B)  annuities. 
C)  individual savings plans. 
D)  employer retirement and pension plans. 
E)  all of these. 
A)  social security. 
B)  annuities. 
C)  individual savings plans. 
D)  employer retirement and pension plans. 
E)  all of these.

Question 11

If you make a withdrawal from an IRA account before age 57 1/2,you generally owe a 20% penalty on that amount

Accepted Answer

A) True 
 B)False

Question 12

In long-term retirement planning you decide on the required level of retirement income and funds needed over a 3 to 5 year series of intervals.

Accepted Answer

A) True 
 B)False

Question 13

Whether or not social security benefits will be subject to income taxes depends on the age of the recipient.

Accepted Answer

A) True 
 B)False

Question 14

Lillian has a defined benefit plan that promises an annual retirement benefit based on the average of her last three years of salary times 2 times years of service.At retirement Lillian has 15 years of service and an average salary over the last 3 years of $65,000.What will her annual benefit be?

Accepted Answer

A)  $65,000 
B)  $50,500 
C)  $35,400 
D)  $19,500 
E)  cannot determine 
A)  $65,000 
B)  $50,500 
C)  $35,400 
D)  $19,500 
E)  cannot determine

Question 15

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-Most people invest their retirement funds too [aggressively | conservatively].

Accepted Answer

A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement. 
A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement.

Question 16

Eligibility requirements for pension and retirement plans are typically determined by the employee's age and years of service.

Accepted Answer

A) True 
 B)False

Question 17

Qualified retirement plans provide employees with tax benefits.

Accepted Answer

A) True 
 B)False

Question 18

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. 
-Money to make social security benefit payments comes from contributions from [employees only | employers only | employees and employers].

Accepted Answer

A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement. 
A) for the first item 
B) for the second item 
C) if neither item will correctly complete the statement.

Question 19

For most workers,participation in the social security system is mandatory.

Accepted Answer

A) True 
 B)False

Question 20

The employee contributions limits for 401(k)plans are the same as those for 403(b)and 457 plans.

Accepted Answer

A) True 
 B)False

Annual increases in the social security benefit check are related to the

An investment vehicle that systematically pays out benefits over an extended period of time is a(n)

Gordon and Lisa estimate that they will need $1,875,000 in 40 years for their retirement years.If they can earn 8 percent annually on their funds,how much do they need to save annually?

A $3,000 annual contribution to a retirement account earning 6% will be worth ____ in 20 years.

Most people are too conservative when investing their retirement funds.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -In a Roth 401(k),contributions [are | are not] tax deductible.

The proceeds of a variable annuity are dependent on the

Retirement plan portability is characterized by one's ability to move retirement plan investments from one investment to another investment while working for the company.

The two ways to buy annuities are single premium and

Major sources of retirement income include

If you make a withdrawal from an IRA account before age 57 1/2,you generally owe a 20% penalty on that amount

In long-term retirement planning you decide on the required level of retirement income and funds needed over a 3 to 5 year series of intervals.

Whether or not social security benefits will be subject to income taxes depends on the age of the recipient.

Lillian has a defined benefit plan that promises an annual retirement benefit based on the average of her last three years of salary times 2 times years of service.At retirement Lillian has 15 years of service and an average salary over the last 3 years of $65,000.What will her annual benefit be?

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -Most people invest their retirement funds too [aggressively | conservatively].

Eligibility requirements for pension and retirement plans are typically determined by the employee's age and years of service.

Qualified retirement plans provide employees with tax benefits.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -Money to make social security benefit payments comes from contributions from [employees only | employers only | employees and employers].

For most workers,participation in the social security system is mandatory.

The employee contributions limits for 401(k)plans are the same as those for 403(b)and 457 plans.

Understanding the Financial Planning Process

Using Financial Statements and Budgets

Preparing Your Taxes

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Credit

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Investing in Mutual Funds

Preserving Your Estate

Filters

Exam 14: Planning for Retirement

Annual increases in the social security benefit check are related to the

An investment vehicle that systematically pays out benefits over an extended period of time is a(n)

Gordon and Lisa estimate that they will need $1,875,000 in 40 years for their retirement years.If they can earn 8 percent annually on their funds,how much do they need to save annually?

A $3,000 annual contribution to a retirement account earning 6% will be worth ____ in 20 years.

Most people are too conservative when investing their retirement funds.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -In a Roth 401(k),contributions [are | are not] tax deductible.

The proceeds of a variable annuity are dependent on the

Retirement plan portability is characterized by one's ability to move retirement plan investments from one investment to another investment while working for the company.

The two ways to buy annuities are single premium and

Major sources of retirement income include

If you make a withdrawal from an IRA account before age 57 1/2,you generally owe a 20% penalty on that amount

In long-term retirement planning you decide on the required level of retirement income and funds needed over a 3 to 5 year series of intervals.

Whether or not social security benefits will be subject to income taxes depends on the age of the recipient.

Lillian has a defined benefit plan that promises an annual retirement benefit based on the average of her last three years of salary times 2 times years of service.At retirement Lillian has 15 years of service and an average salary over the last 3 years of $65,000.What will her annual benefit be?

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -Most people invest their retirement funds too [aggressively | conservatively].

Eligibility requirements for pension and retirement plans are typically determined by the employee's age and years of service.

Qualified retirement plans provide employees with tax benefits.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. -Money to make social security benefit payments comes from contributions from [employees only | employers only | employees and employers].

For most workers,participation in the social security system is mandatory.

The employee contributions limits for 401(k)plans are the same as those for 403(b)and 457 plans.

Understanding the Financial Planning Process

Using Financial Statements and Budgets

Preparing Your Taxes

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Credit

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Stocks and Bonds

Investing in Mutual Funds

Preserving Your Estate

Filters